Hiring the right property management company in Baton Rouge can make or break your investment success. A great property manager protects your assets, minimizes vacancies, and keeps tenants satisfied. But the wrong one can quietly eat away at your profits through hidden fees or poor communication.
If you’re a real estate investor in Baton Rouge, don’t hand over your keys without doing your homework. Here are the most important questions to ask before hiring a property manager in Baton Rouge, and why each one matters.
1. What Fees Do You Charge?
Every property management company has its own fee structure, and understanding it up front is key to protecting your bottom line.
The most obvious cost is the monthly management fee, which usually ranges from 8–12% of collected rent. However, that number doesn’t tell the whole story.
Be sure to ask:
- What is the monthly management fee? This should include rent collection, tenant communication, and day-to-day operations. Some companies charge a flat rate, while others use a percentage of rent.
- Are there additional fees? Most management companies charge separate fees for tenant placement, lease renewals, inspections, or even administrative costs.
It’s not uncommon to see agreements with an absurd number of extra fees, and that’s where investors lose money. Ask for a full fee breakdown in writing and question anything unclear.
A reputable Baton Rouge property management company will be transparent and happy to explain every fee. For our pricing structure: http://www.smithhearn.com/property-management
2. Do You Manage Properties in My Area?
Baton Rouge is a diverse market. The company that manages an apartment complex in Denham Springs might not specialize in single-family homes near LSU or multifamily properties in Mid City.
Ask your potential manager:
“Can you give me examples of properties you currently manage near mine?”
This matters because local experience leads to better tenant placement, accurate rent pricing, and faster service response.
If your rental is outside their service area, you may experience slower maintenance, weaker marketing, or less market insight. Always confirm your property is within their Baton Rouge service area and that they’ve managed similar homes successfully.
3. How Is Maintenance Handled?
Maintenance can quickly become one of the biggest costs of property management and some companies use it as a hidden profit source.
Many property managers add 10–20% to every maintenance invoice. That means a $200 repair could cost you $220 or $240 after markups.
Ask these key questions:
- Do you add a percentage to maintenance costs?
- Who approves repairs and at what dollar amount?
- Do you use in-house maintenance or third-party vendors?
- What amount threshold will you contact me to approve?
A transparent company will provide copies of invoices and explain each charge.
4. What Fees Do You Charge Tenants?
This is a question most investors overlook but it has a major impact on how fast your property rents.
Many companies add monthly fees for tenants, such as:
- Resident benefit packages
- Maintenance assurance fees
- Online portal or processing fees
- Air filter delivery programs
While some services are legitimate, excessive tenant fees can easily add up to $50–$100 per month, making your listing less competitive.
When tenants compare rentals, those added costs can push them toward other properties. Excessive tenant fees might boost a management company’s income, but they hurt your bottom line through higher vacancy rates and shorter leases.
Ask for a list of tenant fees before signing any agreement to ensure they’re fair and reasonable.
5. How Do You Communicate With Owners?
Great communication is one of the clearest signs of a professional property management company.
Before you sign, ask:
- How often will I receive property updates?
- Will I have a dedicated point of contact?
- How quickly do you respond to owner inquiries?
- Do you offer an online portal for financial reports and maintenance records?
A responsive manager can save you time, stress, and money, especially when issues arise. The best Baton Rouge property management companies offer transparent reporting and timely communication to keep owners informed.
6. What Is Your Process for Screening Tenants?
The quality of your tenants determines the quality of your investment. Ask your property manager how they screen applicants.
A solid screening process should include:
- Credit and background checks
- Employment and income verification
- Rental history and reference checks
A company with low eviction rates likely has strong systems and good tenant relationships, which benefits you.
7. Can I Review a Sample Management Agreement?
Before you commit, always request a sample management contract and read it carefully.
Pay attention to:
- Termination clauses – Can you cancel easily if you’re unhappy?
- Hidden or add-on fees not mentioned earlier
- Authority limits – What can the manager approve without your consent?
A transparent company will provide this document right away and walk you through each section.
Final Thoughts
The Baton Rouge rental market offers excellent opportunities for investors, but only if your property is managed by the right team.
Don’t forget to ask these questions before hiring a property manager in Baton Rouge.