Top 5 Tips for Choosing the Best Property Management Company
About 41% of rental housing owners in the United States are individuals. This means many people manage their own rental properties.
Managing a property involves a lot of work. You need to screen tenants, handle repairs, collect rent, and deal with evictions. These responsibilities can become overwhelming for a single person.
If your rental property is taking too much of your time, you may want to hire a property management company. They can help you manage tenant requests and keep everything organized.
A skilled property manager can ensure tenant satisfaction and happiness. They have strong tenant retention strategies that helps tenants to stay happy and in your rental property.
They can also lower the chance of legal problems. Additionally, they guarantee timely receipt of your rent. This lets you focus on other parts of your life and investments.
Great property managers make a world of difference.
To help you research the property management industry and find the best fit, here are the top five tips to guide your search.
1. Determine the Type of Property Manager You Need
Different types of property management services exist depending on the type of property you own.
For example:
- Residential Property Management - Deals with single-family homes, condos, and apartments, focusing on tenant relations, maintenance, and rent collection.
- Commercial Property Management - Involves managing office buildings, retail centers, and industrial properties, often requiring knowledge of business tenants, leases, and regulations.
- Multi-family Property Management focuses on managing apartment complexes or housing communities with many units. This role often needs extra skills in building maintenance and managing tenant communities.
- Long-Term Property Management handles leases of 7 months or longer, typically 12 months or more.
- Short-Term Property Management focuses on vacation rentals and short stays. This includes Airbnb, VRBO, and other rental platforms.
Choose a property manager who knows your property type well. They should offer great customer service. They must understand the unique needs of tenants and local rules. Specialized experience is essential to handle the complexities of each property type and reduce tenant turnover.
2. Ask for Recommendations
A great way to start your search is by asking for recommendations. Connect with other property owners, colleagues, realtors, and contractors to gather a list of potential property managers.
Many property owners rely on word-of-mouth referrals to find a reliable management company.
Online reviews on platforms like Google and Facebook can also provide insight into a company’s reputation. Once you have a shortlist, check the companies’ credentials.
Use the Better Business Bureau and your local Real Estate Commission. This will help you confirm they are legitimate and have no major complaints.
3. Hold Interviews
Interviewing potential property managers is essential. This will give you a sense of their professionalism, communication style, organizational skills, and approach to property management.
Arrange a face-to-face meeting or request a tour of properties they currently manage to get a firsthand look at their work quality.
During property visits, talk to current tenants if possible. Their feedback shows how well the management company handles tenant concerns. It also shows how they maintain the property and if tenants are renewing their leases.
A good property management company will have satisfied tenants and a well-maintained property portfolio.
4. Important Questions to Ask
During interviews, ask the following questions to help you evaluate potential property managers:
- What is your success rate in managing similar properties? – Look for managers with proven experience and successful property management records. Ask about their tenant retention rates.
- Can you provide references? – Contacting other property owners they work with can give you valuable insights.
- Are you licensed and certified? – Ensure they hold the required property management licenses and certifications for your area. Florida property managers do not need a license, but brokerages do.
- Do you carry insurance? – The company should have general liability insurance and property casualty insurance to protect you and your property.
- How do you set rental rates? – The company should have strong market knowledge and understanding of the property management market.
- What are you management fees? – They should be transparent with all their managements fees within their management agreement. Understand if they are flat fee or percentage based.
- How do you handle security deposits? – They should advocate for their client when doing a security deposit claim, while following the governing law of Florida.
- What insurance coverage is required? – Professional management companies should have insurance coverage requirements for their clients.
Thoroughly vetting these details will help you confirm that the property management company has the necessary qualifications and trustworthiness.
5. Review Contract Details Carefully
Before signing any contracts, review the services offered and their associated fees in detail. Knowing the fees and services will help you avoid unexpected charges. This will also ensure you receive the services promised to you.
Contracts should include important elements such as:
- Start and End Date - Specify the length of the agreement; most property management contracts are one year long.
- Services Provided - List all services the company will manage, from rent collection to tenant communication.
- Termination Clause - Make sure there is a clause that lets you end the contract if you are unhappy with their services.
A well-defined contract will protect both parties and outline clear expectations within terms and conditions. Once the parties agree, you can start doing business together.
Why Allegiant Management Group is the Best in Florida
At Allegiant Management Group, we understand the property management business from top to bottom. We manage every aspect of your property, from collecting rents and tenant screening to evictions and maintenance and repairs.
When you trust us with your property, you save time and avoid legal issues. You can relax, knowing your investment is safe. If you are looking to contact a property manager for rental, look no further than Allegiant.
Allegiant Management Group has a lot of experience in Florida's real estate market. It has become one of the most successful property managers in the state.
Let us help you with your Orlando Florida property or other greater Orlando properties. Learn more about us here and see how we can help you with your property management needs. Contact us today!
Choosing a Rental Property Management Company Video
Frequently Asked Questions (FAQs): Choosing a Property Manager
How much does a property management company typically charge?
Property management companies typically charge 8% to 12% of the monthly rental income for ongoing management. Leasing fees range from 50% to 100% of one month’s rent. Additional costs may include maintenance, lease renewal, and vacancy fees. Rates vary by location, property type, and services offered.
What are the benefits of hiring a property management company?
Hiring a property management company provides benefits like tenant screening, rent collection, property maintenance, legal compliance, and reduced vacancies. It saves time, minimizes stress, and ensures efficient operations. Professionals handle repairs, enforce leases, and optimize rental income, making property ownership more passive and profitable.
What services does property management include?
Property management services typically include tenant screening, rent collection, maintenance, lease enforcement, inspections, legal compliance, and financial reporting. Some companies also handle marketing, evictions, and lease renewals. Services vary by provider but aim to maximize rental income and property efficiency.
How can I tell if a property management company is reputable?
To determine if a property management company is reputable check online reviews, client testimonials, industry certifications, and licensing. Verify their experience, fee transparency, and tenant management process. A good company communicates clearly, maintains properties well, and follows legal guidelines.
Can I terminate my contract with a property management company?
Yes, you can terminate a property management contract, but terms vary. Review the agreement for notice periods, termination fees, and required procedures. Provide written notice (usually 30 days) and settle outstanding fees. Some contracts allow termination for cause, such as poor performance or legal violations.
How do you evaluate a property management company?
Evaluate a property management company by reviewing its experience, client reviews, and service offerings. Check its licensing, fee structure, and tenant screening process. Assess communication, maintenance handling, and financial reporting. Request references from current clients to gauge reliability and efficiency.
What does the golden rule mean to a property manager?
The Golden Rule for property managers means treating tenants, owners, and vendors with fairness and respect. This includes clear communication, ethical decision-making, and prompt issue resolution. Applying this principle fosters trust, reduces conflicts, and enhances tenant retention.
What are the 5 P's of property management?
The 5 P’s of property management are Planning, People, Property, Processes, and Profit. Planning ensures strategic operations, People involve tenant and staff management, Property focuses on maintenance, Processes streamline tasks, and Profit maximizes financial performance.
What makes a property manager stand out?
A standout property manager excels in communication, problem-solving, and tenant relations. They prioritize proactive maintenance, transparent financial reporting, and strong market knowledge. Exceptional customer service, legal compliance, and effective marketing further distinguish top performers in the industry.
What is the biggest responsibility for property management?
The biggest responsibility in property management is maintaining and maximizing property value. This includes tenant management, timely maintenance, rent collection, financial reporting, and legal compliance. A well-managed property ensures profitability and long-term investment success.
What are red flags when interviewing property managers?
Red flags when interviewing property managers include poor communication, unclear fees, lack of references, high tenant turnover, and inadequate maintenance plans. Beware of vague contracts, limited legal knowledge, and unresponsive service. A reliable manager should provide transparency, experience, and a clear management strategy.
Disclaimer: The information in this article is for general purposes only. It should not be seen as legal advice. Always consult with a licensed attorney for specific legal guidance.
Blog Updated: 03/08/2025
