A good teacher has to know how to teach a young beginner. Do they explain the technic in a way a 5-year old one can understand. By the way, hand position is very important from the begining. If they have bad habit, it is very difficult to change it later, take much more time. My son is just tured 5 and started lessons two months ago. His sight reading is OK so he can play the new song correctly in note very quick. But his hand position is bad, everytime his teacher needs to correct it almost during whole class. Before I also thought for such young kid, don't need to pay too much attention to hand position as long as he can play the song. But now I think I am wrong. I just struggled with him for hours today to correct his hand position. Once he used to old one, it is really hard for him to change it(Of course, it depends on kids, some can understand and repeat it easily, but not my son). I have to slow down and just play the notes with correct position instead of songs. So if you want your daughter learn to play piano, let teacher teach her in correct way from the begining.
Overall, your daughter needs to like the teacher and understand what teacher saying. And the teacher wants to teach young beginner. Talk to her ohter students' parents to see if this teacher is too tough for a young one.