how to choose a property management company: 7 tips

Finding the right property management company is a big decision. It’s about more than just collecting rent; it’s about finding a true partner to protect your investment and help you hit your financial goals. The whole process boils down to figuring out what you actually need, checking out their services and fees, and doing your homework before you sign anything.

Defining Your Property Management Needs

Before you even start Googling local property managers, you need to get crystal clear on what you’re looking for. A little self-assessment upfront can save you a world of headaches later.

First off, decide how involved you want to be. Are you looking for a completely hands-off experience where the manager handles every late-night emergency call and screens every applicant? Or do you prefer to have the final say on major decisions? It’s a real challenge for many owners, especially when it comes to managing properties while working a job. Knowing your preferred level of involvement is key.

Identify Your Must-Have Services

Next, make a list of your non-negotiables. The needs of a single-family rental are worlds apart from those of a multi-unit building, so get specific.

Think through these crucial areas:

• Tenant Screening: What’s your standard? Do you have minimum credit scores or income requirements you won’t budge on?

• Maintenance Protocols: How do you want repairs handled? Do you need to approve every single expense, or just those over a certain dollar amount, say $500?

• Financial Reporting: What kind of financial transparency do you expect? Are basic monthly statements enough, or do you need more detailed breakdowns of income and expenses?

Having this list ready gives you a solid framework for evaluating companies. It’s no longer about a generic sales pitch; it's about whether they can meet your specific needs.

This level of planning is more important than ever. The global rental management market is already valued at $27.8 billion and is expected to rocket past $54.6 billion by 2033. With so many players in the game, clarity on your part is what ensures you pick a partner who will genuinely champion your investment strategy.

Getting to the Heart of Their Services and Expertise

A slick website and a confident sales pitch are one thing, but the real test is how a property management company operates behind the scenes. This is where you’ll find out if they’re truly excellent or just average. You need to dig into the nitty-gritty, the day-to-day reality of how they’d actually handle your property. What matters most are their core competencies, because those directly affect your bottom line and your peace of mind.

Start with their tenant screening. A simple credit check just doesn't cut it anymore. You need to know if they're doing comprehensive background checks that include criminal history and, crucially, any prior eviction records. Do they actually pick up the phone and call previous landlords? Do they verify employment? A tough screening process is your first line of defense against late rent, property damage, and eviction headaches down the road.

How They Handle Marketing and Maintenance

A vacant unit is a cash drain, plain and simple. You need to see a proactive marketing plan in action. Ask to see some of their current rental listings. Are the photos high-quality? Is the description compelling and accurate? Where are they advertising—just on their own site, or across major platforms like Zillow and Apartments.com? A manager who just sticks a sign in the yard isn’t going to get your property rented quickly.

Just as critical is their system for maintenance. What really happens when a tenant calls at 2 AM with a burst pipe?

• Do they have a go-to list of trusted, insured vendors, or are they just scrolling through Google?

• Do they add a markup to maintenance invoices? A coordination fee of 10-15% is pretty standard, but it absolutely needs to be disclosed upfront.

• How will they communicate with you about a routine fix versus a genuine emergency?

You're looking for a partner who can solve problems efficiently without needing you to micromanage every step. This protects your asset and keeps your tenants happy.

Expert Tip: Put them on the spot with a real-world scenario. Ask something like, "Tell me about the last major, unexpected repair you managed. What went wrong, what steps did you take, and how did you keep the owner in the loop?" Their answer will tell you more than any sales brochure ever could.

Finally, get crystal clear on how they handle rent collection and delinquencies. Do they make it easy for tenants to pay online? What’s their exact process on the first day rent is late? Understanding their protocol for enforcing the lease—all the way to eviction, if it comes to that—is essential. This is how you find a manager who will truly protect your investment when things get tough.

Full-Service vs. A La Carte Management

Before you go any further, it’s important to understand the two main service models you'll encounter. Some companies offer all-in-one, "full-service" management, while others let you pick and choose individual services, often called "a la carte" or "leasing-only." Deciding which is right for you depends on how hands-on you want to be.

Here's a breakdown to help you compare:

Comparing Property Management Service Offerings

Service Area	Full-Service Management Includes	A La Carte / Leasing-Only Includes
Leasing & Marketing	Professional photos, advertising, showings, tenant screening, lease signing.	Often includes everything from the full-service column, but the service ends once the lease is signed.
Rent Collection	Monthly rent collection, late fee enforcement, online payment portals.	Not included. The owner takes over rent collection after the tenant moves in.
Maintenance	24/7 emergency response, vendor management, routine repair coordination.	Not included. The owner is the point of contact for all maintenance requests.
Financials	Monthly owner statements, expense tracking, year-end tax documentation.	Not included.
Tenant Relations	Ongoing communication, lease renewals, conflict resolution, move-out inspections.	Not included. The owner manages the entire tenant relationship.
Evictions	Filing legal paperwork, coordinating with attorneys, representing the owner in court.	Not included. The owner is responsible for the entire eviction process.

Ultimately, full-service is for the investor who wants a completely passive experience. A la carte services, on the other hand, are a good fit for local, hands-on landlords who just need help with the initial heavy lifting of finding a great tenant.

Understanding Fees and Contract Fine Print

When you’re trying to figure out how to choose a property management company, that main management fee they quote is just the start. The real cost? It’s often buried in the fine print of the fee schedule, just waiting to take a bite out of your rental income.

It’s a classic mistake to get fixated on that one percentage. Many owners get a nasty surprise when they see the first statement and realize all the extra charges. While a monthly management fee between 8-12% of the collected rent is pretty standard, it’s the other costs that can really add up.

Decoding the Fee Structure

This is where you have to put on your detective hat and ask some direct questions. Don't be afraid to dig in—this is your money, after all.

You need to know exactly what you’re paying for. Here’s what I always look for:

• Leasing Fee: What’s the charge for finding and placing a new tenant? You’ll often see this as 50% to 100% of the first month's rent.

• Renewal Fee: What if you have a great tenant who wants to stay? Some companies will charge a few hundred dollars just to draw up the renewal paperwork. It's a fair question to ask.

• Maintenance Markup: This one is huge. Do they add their own fee, often 10-15%, on top of what the plumber or electrician charges? It’s a common practice, but you need to know the percentage.

• Eviction Costs: Nobody wants to think about it, but you have to be prepared. How do they handle the costs if you have to evict someone? Are their administrative hours and the actual court fees billed separately?

This infographic breaks down the core services that all these fees are supposed to cover.

As you can see, things like tenant screening, maintenance coordination, and marketing are all part of the package. Your job is to connect the dots between these services and the specific fees on their schedule.

Your management agreement should be a document of clarity, not confusion. If a company can’t clearly explain every line item and justify every fee, that's a major red flag.

Scrutinizing the Management Agreement

Once you’ve got a handle on the fees, it’s time to look at the contract itself. Pay close attention to the contract term and, crucially, the termination clause. What does it take to get out of the agreement if you’re not happy? The last thing you want is to be locked into a year-long contract with a company that isn't performing, facing a huge penalty to leave.

Getting these legal and financial details sorted out from the beginning is absolutely non-negotiable. For a more detailed breakdown, you can read our guide to property management fee structures.

Even though you're likely working with a local company, it's helpful to know what the industry standards look like. A giant like Prologis, Inc., which pulled in over $7.7 billion in revenue in 2025, sets a high bar for transparent contracts. Your local firm might not be that big, but they should still offer a clear and fair agreement that protects both of you. You can get more background on the industry as a whole from researchers at IBISWorld.

Evaluating Their Technology and Communication

Let's be honest, the days of property managers running their business from a paper ledger are long gone. Today, a company's technology is a direct reflection of its efficiency and transparency. It’s not just about bells and whistles; it's about how easily you can access information about your own investment.

So, what should you look for? Start by asking about their online portals.

• Owner Portal: Can you log in anytime to see financial statements, pull up inspection reports, or check the status of a maintenance ticket? You should have this information at your fingertips, 24/7.

• Tenant Portal: Do they make it easy for tenants to pay rent online and submit maintenance requests? A simple, user-friendly portal can make a huge difference in tenant satisfaction and retention.

These tools aren't just for convenience—they’re essential for smooth operations and keeping good tenants happy.

Are They Proactive Communicators?

Beyond the software, you need to know how they handle actual human communication. A great property manager keeps you in the loop without bogging you down with every minor detail. You’re paying for them to handle the small stuff, but you need to hear about the big stuff before it becomes a crisis.

You're looking for a proactive approach, not a reactive one. Ask them how they handle things like a major appliance failure or a tenant who’s late on rent. Do they have a clear process, and when would they loop you in?

A manager’s communication style during the interview process is the best preview you’ll get. If they're slow, vague, or disorganized now, don't expect that to change once they have your keys.

The industry is moving quickly in this direction. In fact, a recent report showed that 92% of management firms are actively using technology to manage their growing portfolios. This isn’t a fad; it’s the new standard. To stay ahead of the curve, you can read more about property management technology trends for 2025 and see what the future holds.

Conducting Your Due Diligence Before Signing

You’ve got a short list of potential property managers, and you're feeling good about your choices. Now comes the part where you separate the good from the great. It's time to verify everything you've been told.

Don't rush this final step—it's a mistake I've seen far too many owners regret. This is where you dig in and make sure the company you choose is truly the right partner for your investment.

Start with the official stuff: their credentials. In most states, property managers need a real estate broker's license if they're handling leasing and rent. You can usually check this right on your state's real estate commission website.

Also, keep an eye out for professional designations from groups like the National Association of Residential Property Managers (NARPM). This isn't just a piece of paper; it shows they're serious about their craft and committed to staying on top of industry best practices.

Digging into Reviews and References

Online reviews are a goldmine of information, but you have to learn how to read them. A single negative review about a leaky faucet isn't a red flag, but if you see a dozen reviews all mentioning terrible communication or maintenance delays, you've found a pattern. That's what you're looking for.

Next, it's time to pick up the phone and call the references they gave you. Don't settle for a simple "Are you happy with them?" Get specific and dig for the real story.

Here are the questions I always ask:

• How long have they been managing your property, and what type of property is it?

• On a scale of 1 to 10, how would you rate their communication?

• Can you tell me about a time they handled a tricky tenant issue or a big repair?

• Have there ever been any surprise fees on your owner statement?

The answers you get here paint a picture of what it’s actually like to work with this company. A manager who happily provides several enthusiastic references is usually a very good sign.

As you put the final pieces together, remember that you're not just hiring a vendor; you're building a partnership. Leaning on proven strategies for building trust during this phase will pay dividends down the road, ensuring the company you hire becomes a genuine asset, not a future headache.

Making the Final Call: The Right Questions to Ask

You've put in the work, sifted through the options, and now you have a shortlist of a few solid contenders. This is the moment of truth. The final step is all about asking the pointed questions that get past the sales pitch and reveal how a company really operates.

This isn't just about their fees. Honestly, their day-to-day processes and problem-solving skills will have a far greater impact on your bottom line and peace of mind than a small difference in their management fee.

Diving Deeper with Scenario-Based Questions

It's time to move beyond the brochure and get into the nitty-gritty of real-world situations. Their answers to these kinds of questions are incredibly revealing and give you a true side-by-side comparison.

Here are a few examples to get you started:

• Handling Tenant Issues: "A good tenant is five days late on rent for the first time. What’s your exact process? What notice do they get, and at what point do you loop me in?"

• Managing Emergencies: "Can you tell me about the last major after-hours emergency you dealt with? How did you get it fixed, and how did you keep the owner updated?"

• Resolving Owner Disagreements: "Describe a time when you and a property owner didn't see eye-to-eye on a big decision, like a costly repair or a tenant choice. How did you work through it?"

Questions like these don't have a canned answer. They require a manager to pull from actual experience, giving you a glimpse into their competence and communication style under pressure.

At the end of the day, you're not just hiring a vendor; you're trusting someone with one of your most valuable assets. Their ability to handle stress, communicate effectively, and think on their feet is what truly matters.

A Quick Checklist for Your Interviews

To make sure you cover all the essential bases during your conversations, it helps to have a checklist ready. This ensures you're asking each candidate the same core questions, making your final comparison much easier.

Here's a table of crucial questions to guide your interviews.

Essential Questions to Ask Potential Property Managers

Category	Question
Fees & Contracts	What are all the fees I can expect to pay, beyond the monthly management fee?
Tenant Screening	What are your minimum qualification standards for tenants (credit score, income, etc.)?
Maintenance	Do you have your own maintenance crew, or do you use third-party vendors?
Communication	How and when will I receive updates about my property?
Financials	What financial statements will I receive, and how often?
Evictions	What is your process for handling an eviction from start to finish?
Vacancies	What is your average time to fill a vacancy, and what's your marketing strategy?
Legal Compliance	How do you stay current with local and state landlord-tenant laws?

Having these answers documented will help you make a logical, informed decision instead of just going with a gut feeling.

Compare and Decide

Once the interviews are done, lay out your notes. A simple scorecard rating each company on communication, maintenance procedures, and overall transparency can cut through the noise. This helps you step back and objectively see which company truly aligns with your goals as an owner. For a more exhaustive list of what to ask, check out these essential property manager interview questions.

By asking these tough, specific questions, you get a clear picture of what this partnership will look like—in good times and bad. This thorough approach is the secret to finding a property management company that doesn't just protect your investment but helps it grow.

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At Keshman Property Management, we believe in total transparency and proactive partnership. With over 20 years of hands-on experience as landlords ourselves, we're ready to answer your toughest questions and show you how our dedicated service can make your life easier and your investment more profitable. Visit us at https://mypropertymanaged.com to learn more.