Key Takeaways
- →ARS compliance knowledge is the most important factor — a non-compliant tow exposes the property manager to legal liability.
- →Standing authorization agreements allow enforcement without per-call approval, making consistent enforcement practical.
- →24/7 dispatch availability is non-negotiable — parking violations don't follow business hours.
- →Photo documentation on every tow is essential — it's the property manager's defense if a vehicle owner disputes the removal.
- →Ask for references from similarly-sized properties and verify law enforcement notification compliance before signing any contract.
Choosing a towing company is not the same as choosing a landscaper. Your parking enforcement partner operates on your property in your name, under your authorization, with direct impact on your residents or tenants, your legal exposure, and your community's quality of life. Getting the evaluation right from the start saves significant friction later.
Why the Selection Decision Is High-Stakes
Property managers in Phoenix, Scottsdale, Tempe, and across the metro frequently inherit towing agreements from previous management or sign with the first company that calls them. The result is often a provider who is difficult to reach, produces no documentation, and leaves the property exposed to disputes it cannot defend.
The right towing partner does more than remove vehicles. They operate as an extension of your property management function: maintaining compliant signage, documenting every removal, notifying law enforcement as required by ARS 28-3511, and handling disputes directly so your team is not drawn into contentious exchanges with vehicle owners. See our full legal framework: Arizona Private Property Towing Guide 2026.
10 Questions to Ask Before Signing a Towing Agreement
Use these questions in your first conversation with any prospective towing company. The answers reveal whether the company is operating a fully compliant, professionally managed program — or a bare-minimum service that exposes your property to risk.
1. Are you licensed by the Arizona Department of Transportation (ADOT)?
ADOT licensing is a legal requirement for towing companies operating in Arizona. Ask for the license number and verify it directly with ADOT. A company that cannot immediately provide their license number is a concern.
2. Do you carry general liability, garage keepers, and commercial auto insurance?
All three coverage types are necessary. General liability covers property damage your operation might cause on site. Garage keepers covers vehicles in your custody. Commercial auto covers your trucks. Require certificates of insurance naming your property as an additional insured.
3. Can you explain ARS 28-3511 and your one-hour law enforcement notification requirement?
ARS 28-3511 requires the towing company to notify local law enforcement within one hour of removing a vehicle from private property. A company that is unaware of this requirement, or that has a poor track record of compliance, is exposing your property and themselves to legal challenges.
4. What does your signage audit service include?
Before the first tow, a professional company should audit your existing signage for compliance with ARS 9-499.05 and applicable municipal codes. Ask what they look for, how they document the audit, and whether they replace non-compliant signs.
5. What documentation do you provide for every vehicle removed?
The answer should include: pre-tow photograph, vehicle identification (make, model, plate, VIN), date and time, specific violation, law enforcement notification record, and storage facility location. If the answer is vague, that is a problem.
6. What is your average response time for a property call?
Response time matters for situations where an unauthorized vehicle is blocking a fire lane, a resident's designated space, or an ADA-accessible spot. Ask for a committed response-time window, not just a general statement about being fast.
7. How will you handle disputes with vehicle owners?
A professionally run company handles vehicle owner inquiries and disputes directly, without routing them back to the property manager or HOA board. Ask specifically whether vehicle owners will be directed to call the property — they should not be.
8. What monthly reporting do you provide?
Monthly written reports should list every vehicle removed, including violation type and outcome. Ask to see a sample report. Properties with active enforcement should also receive weekly email summaries.
9. What is your termination notice period?
Review the exit provisions before you sign. A 30-day notice period is reasonable. Agreements that lock you in for 12 months with no exit clause are worth scrutinizing carefully.
10. Do you offer any financial incentives to property managers or board members for tow authorizations?
The correct answer is no. Any company that offers to pay you per tow, share storage revenue, or provide gifts in exchange for tow authorizations is proposing an arrangement that creates legal and ethical exposure for you. It is also a red flag about their overall business practices.
Red Flags: When to Walk Away
Beyond the evaluation questions, certain behaviors and proposals should end your consideration of a towing company immediately:
Insurance and Licensing: What to Verify
Before any towing agreement is signed, request and verify:
- ADOT towing company license — verify directly with ADOT, not just from the company's marketing materials
- ADOT storage facility license — the lot where vehicles are held must also be separately licensed
- Certificate of insurance for general liability, naming your property / management company as additional insured
- Certificate of insurance for garage keepers liability — protects against claims related to vehicles in custody
- Commercial auto policy covering their tow truck fleet
- Confirmation that the storage facility's hours are sufficient for vehicle owners to retrieve vehicles during business hours
Reading and Interpreting Monthly Reports
Monthly reporting is one of the most valuable tools in a property manager's arsenal — and one of the most underutilized. A well-structured monthly report from your towing company allows you to:
- Identify patterns — if the same lot section generates repeated violations, there may be a signage, striping, or permit assignment issue
- Document enforcement activity for board presentations and HOA annual meetings
- Defend against disputed tows — if a vehicle owner claims their vehicle was wrongly towed, the report and associated photographs are your defense
- Assess whether your enforcement agreement is calibrated correctly — too many tows may indicate a permit management issue; too few may indicate under-patrolling
- Demonstrate due diligence if a liability issue arises related to unauthorized parking (fire lane obstruction, ADA access)
When reviewing reports, pay attention to tow frequency by day of week and time of day. Many unauthorized parking situations cluster on specific evenings or around events in your community. Your towing agreement should allow for patrol intensity adjustments based on this data.
The Transition: Switching Towing Companies
If you are unhappy with your current provider and ready to switch, the process requires coordination to avoid a gap in enforcement coverage:
- 1Review your current agreement for termination notice requirements — typically 30-60 days
- 2Select your new towing partner and sign the new agreement before providing notice to the current company
- 3Schedule a signage audit and replacement with your new partner — new signs must display the new company's name and phone number
- 4Provide written notice of termination to your current provider per the agreement terms
- 5Coordinate the transition date to avoid gaps — both companies should know the effective date clearly
- 6Notify residents or tenants of the change in towing company and updated signage through your standard communication channels
Additional Evaluation Resources
For a more structured evaluation process, see our dedicated resources:
20-Question Vetting Checklist
Complete list for interviewing towing companies
Parking Enforcement ROI
The business case for professional enforcement
Parking Enforcement Services
Axle Towing's patrol-based enforcement programs
Property Manager Hub
Guides, templates, and checklists
HOA Towing Programs
Custom programs for homeowner associations
Apartment Complex Resources
Tenant vehicle management guides
Frequently Asked Questions
Should a towing company pay a property manager for tow authorizations?
No. Arrangements where a towing company pays a property manager or HOA board member per tow — or provides other financial incentives for authorizations — create serious legal and ethical exposure. Arizona towing regulations prohibit kickback-style arrangements. A reputable towing company will not propose them, and a property manager or board member should not accept them.
What insurance should a towing company carry when operating on my property?
At minimum, a towing company should carry general liability insurance (typically $1 million per occurrence / $2 million aggregate), garage keepers liability (to cover vehicles in their custody), and commercial auto insurance for their fleet. Request certificates of insurance naming your property as an additional insured. Verify the policy is current, not lapsed.
How often should my towing company provide reports?
Monthly written reports are the standard for professionally managed properties. Each report should list every vehicle removed, including date, time, vehicle description, violation type, and outcome (claimed by owner, in storage, or lien process). Properties with active enforcement may benefit from weekly summaries. This documentation is essential for board presentations and dispute resolution.
What is a standing towing authorization?
A standing authorization is a provision in your towing agreement that designates the towing company as your authorized agent for vehicle removal. Under ARS 28-3511, this means the towing company may remove unauthorized vehicles without calling you each time, provided compliant signage is posted. Without a standing authorization, every tow requires a direct call from the property owner.
Can I switch towing companies if I am unhappy with my current provider?
Yes. Review your towing agreement for termination provisions — most include a notice period (typically 30-60 days). Before switching, ensure new signage is installed with the new company's information, as the signage must match the authorized towing company. Your new towing partner should handle the transition audit, signage update, and law enforcement notification of the change.
What documentation should a towing company provide for each tow?
For every vehicle removed, you should receive: a pre-tow photograph of the vehicle in the violation location, the vehicle identification (make, model, color, license plate, VIN if accessible), date and time of removal, the specific violation that warranted the tow, law enforcement notification record, and storage location. This documentation protects the property in the event of a dispute.
Talk to Axle Towing
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Axle Towing & Impound
Professional private property towing and parking enforcement serving the Phoenix metro area. Licensed, insured, and ARS-compliant.