At minimum: Are you a licensed Texas real estate broker? What does your tenant screening stack include? How do you handle maintenance — do you markup vendor invoices? What is your current vacancy rate? And how do I terminate the contract if things do not work out? A PM who gives vague or defensive answers to any of these is telling you something. The goal of the first conversation is not just to evaluate whether they can do the job — it is to determine whether they will be straight with you when something goes wrong.
Start With Licensing
In Texas, property management is regulated activity. A property manager must hold a Texas real estate broker license or work under one. An individual agent can manage property on behalf of their broker, but the broker must be the one with the license — not just the agent. Ask directly: 'Are you a licensed Texas real estate broker, or are you an agent working under a broker?' Then ask for the broker's TREC license number and verify it on the TREC website before you sign anything. This is not a skepticism exercise — it is standard due diligence. Any reputable PM will expect you to verify it.
Ask About the Screening Process in Detail
The screening process is where most bad tenancies begin or are prevented. A professional PM should be able to describe their exact screening stack: credit report (which bureau, minimum score threshold), criminal background (national, county, or both), eviction history search, income verification (required ratio to rent), and rental history verification. Ask what their minimum income requirement is — typically 2.5x to 3x monthly rent — and whether they have written, documented screening criteria they apply consistently to every applicant. Written criteria matter for Fair Housing compliance. If they can't describe their screening process specifically, that is a red flag. 'We check the basics' is not a process.
Ask How They Handle Maintenance — and Whether They Markup Vendors
Maintenance coordination is one of the highest-friction points in any PM relationship. Ask three things: (1) Do you have a preferred vendor list, and are those vendors licensed and insured? (2) At what dollar amount does a repair require my approval before they proceed? (3) Do you charge a markup on vendor invoices, or do I pay the vendor's rate directly? Some PMs take a percentage cut on every repair order — sometimes 10–20% — on top of their management fee. This is legal but should be disclosed upfront. Some owners are fine with it; others are not. Know before you sign. A threshold of $200–$300 for emergency authorization and $500 for non-emergency repairs is common in Tarrant County.
Ask About Vacancies, Retention, and Placement Speed
Vacancy rate and average days-on-market for their listings tells you more than almost any other metric. Ask: What is your current portfolio vacancy rate? How long does it typically take you to place a tenant once a property is listed? What is your average tenant retention across renewals? A healthy Tarrant County PM should be placing tenants in 21–35 days and running a vacancy rate below 5% during normal market conditions. If they cannot answer these questions with specific numbers — or deflect with 'it depends on the property' — ask them to pull an example from a recent listing. Operators who track their numbers can show them. Those who don't, can't.
Ask About Termination — Before You Are In the Contract
Most property management contracts in Texas are 12-month agreements with automatic renewal. Ask: How do I terminate the contract if I am not satisfied? What notice is required? What happens to my current tenant if I terminate? Are there fees for early termination? Some contracts include a clause that ties you to the PM for the duration of the current lease even after you give notice — meaning you cannot switch managers mid-tenancy without paying a fee. Others have a 30-day notice provision with no penalty. Know which you are signing before you agree to anything. The termination clause is the most commonly overlooked part of the PM contract and the one that creates the most disputes.
Common Questions
Should I ask for references from current owners?
Yes, and ask specifically for owners who are not family members or close associates — or better, ask if you can contact one of their current owners directly. A PM who actively manages 30+ units will have no shortage of owners willing to speak on their behalf if the operation is solid. If they hesitate or can only provide testimonials rather than direct contacts, take note.
Is there a difference between a property manager and a property management company?
A property management company is a licensed brokerage that employs or oversees individual licensed agents who handle the day-to-day management of properties. The broker is the licensed entity; the agents work under the broker's license. When you hire a company, confirm who your actual point of contact will be, how many doors that person manages, and what happens to your account if they leave the company.
What does a bad answer look like during the interview?
Vague screening criteria ('we look at everything'), no specific numbers on vacancy or placement speed, inability to describe their maintenance authorization process, and a contract they don't want you to read before signing. Also: a PM who leads the conversation by talking about their fees before addressing how they protect your asset is showing you their priorities.
How many properties does a good property manager handle per person?
Individual property managers typically handle 40–80 doors per person before service quality starts to slide, depending on portfolio complexity. If a single agent is managing 150+ properties without support staff, response times and attention to individual properties will suffer. Ask about the support structure — do they have a dedicated leasing agent, maintenance coordinator, and accounting support, or is it one person doing everything?
What contract terms should I watch for?
Automatic renewal clauses (sometimes with 60-90 day required notice to exit), vendor markup provisions, fees charged on vacant properties, placement fee structure if a tenant leaves early, and whether the management fee is charged on collected rent or scheduled rent. There is a meaningful difference — if the tenant does not pay, some PMs still charge their percentage on what should have been collected. That practice is worth knowing upfront.
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