Ideas on incentivizing property managers

[Kelly Byrd]

I'm new to REI and looking at my first small multi-family properties. I'm going to start interviewing property managers soon so I've been reading the various BP blog posts and guides on questions to ask, things to look out for, etc. I think I'm relatively comfortable with the standard costs and arrangements, but one thought keeps popping up over and over. How do I incentivize my property manager to reduce tenant turnover, shorten turnaround times, and basically reduce overall vacancy rates?

I'm not expecting a hands off approach, I expect to have to manage the PM and I looki forward to finding one I click with when interviewing them. But, I'm a big fan of figuring out incentives up front, rather than fighting conflicting goals down the road. I want to try and set things up so it is in the PM's own interest to have tenants happy to re-up a lease, or to turn a newly vacant unit over in days instead of weeks. 

So, not having to pay the PM when a unit is vacant seems seems like a start, but I worry that things like a new tenant placement fee or a new lease fee works against that.  To be clear, I'm not trying to pay the PM less. I believe the right PM is critical to my success and if I do well, he or she should do well. I'd pay more overall if I found a PM he worked to keep tenants happy they stay year after year and surprise me with speedy unit turn over. 

I'm hoping you all have come up with creative ways to align these things.