Guide to how to find a property manager

The first thing to consider is whether you want to hire an individual property manager or a property management firm.

Individual property managers

Individual property managers are exactly as they sound—one person who you hire to act as the manager of your property. Hiring an individual may be ideal if you have only one or just a few rental properties to be managed. 

Keep in mind that an individual property manager may be managing other properties, too, which will naturally split their focus. And if you plan to invest in more real estate in the near future, a one-person property management operation may not be able to take on the extra management load.

Property management company

You may want to hire a good property management company if you need management services for multiple properties or a multifamily property, as a company will likely have multiple employees who are trained in specific elements of property management and a larger team to handle any issues that may arise. 

Management companies may charge more than individuals, and you’ll need to carefully review their contract and what they charge to make sure you’re paying for the right services for your property and needs. 

Also keep in mind that there’s a difference between a traditional property management company and a tech-enabled property management company, who will use technology in their management duties. For example, they may implement an online portal to streamline maintenance requests or monthly rent payments. Tech-savvy tenants may prefer this use of technology for its ease of use (and you might too).

Do your due diligence when hiring a property manager so that you find the right fit. Here are some tips for finding a good property manager (company or individual):

1. Ask for referrals

Don’t be afraid to lean on other property owners for referrals. You can ask your real estate agent and friends or family members who own homes. Getting recommendations from people you know and trust is a solid way to start your search. 

Don’t forget to ask questions about the referrals, too—ask about the length of their relationship with the manager, and what they see as the manager’s strengths and weaknesses. 

You’ll also want to check the National Association of Residential Property Managers, your state’s real estate commission, and the Better Business Bureau to certify that your prospective property managers are all properly licensed and don’t have any formal complaints lodged against them.

2. Don’t skimp on the interview

Should you decide to proceed with hiring a property manager, it’s important to understand how they do things, so an interview is an essential part of your search. Here a few key topics to inquire about:

• Advertising. How does the prospective manager handle marketing? Where will they advertise the property (online, in newspapers, etc.)? 

• Vacancies. How many vacancies has the property manager filled, and in what type of unit (single-family homes, multi-family homes, etc.)? What is the typical vacancy rate for their units? How long does it usually take them to fill a vacancy? 

• Maintenance. Ask a prospective property manager what their process is for receiving and handling maintenance requests. Do they handle any types of repairs themselves? How robust is their roster of maintenance contractors?

For a complete list of interview prompts, read our full guide on questions to ask a property manager.

3. Visit their properties

Take the time to visit one or more of the properties the candidate currently manages. Things to look out for:

• Does the property appear well-maintained?

• How does their location compare to the location of your property?

• Are there any visible issues or signs of neglect?

4. Review their lease agreements

If handling lease agreements is a task that you want a property manager to handle for your rental property, ask the property manager(s) if you can review the lease agreements they’ve drawn up for the current properties they manage.

5. Compare prices

Interview at least a few different property managers and compare their fees. Ask questions to make sure you have an estimate of how much hiring a property manager is going to cost you on both a monthly and yearly basis.

• What is their fee structure? 

• Do they charge a monthly flat fee, or expect a percentage of the rent collected? 

• Do they charge additional fees for additional management services, i.e. handling an eviction should that situation occur, or placing a tenant in a vacancy? 

• Will they charge you even when a property is vacant? 

 It takes work to find the right property manager, but the benefit may be well worth taking the time to do so. Do your due diligence, and hopefully the partnership with your property manager will be smooth going and long-term.

Bungalow offers tenant placement and property management services that keep your property fully occupied and well managed—helping you earn more rental income from your investment property. With Bungalow, homeowners earn up to 20% more rental income. Learn more about Bungalow.