Overview: Property Managers
A property manager runs a rental you own so that you are not the one answering the phone at night. The work is advertising the vacancy, screening applicants, preparing and signing the lease, collecting rent, taking repair calls, inspecting the unit, and handling the paperwork when somebody moves out. It is a different trade from selling houses, even where the same firm does both.
Settle the repair limit before anything else. Every agreement names an amount the manager may spend without calling you first, and it should also say who does the work, whether contractor invoices carry a markup, and what counts as an emergency at midnight. Vague answers here turn into surprise line items later.
Money should be visible. Rent and security deposits belong in accounts kept apart from the company's own, deposits are held under state rules, and you should get a statement every month plus a summary at year end your accountant can use. Ask to see a sample statement before you sign.
Most states require a real estate license to manage property for somebody else. Verify it with the state before you hand over keys. Use the state and city lists below to reach managers covering your address.
Frequently asked questions
What does a property manager actually handle?
Marketing the vacancy, screening applicants, drawing and signing the lease, collecting rent and chasing it when it is late, taking maintenance calls and dispatching trades, inspecting at move in and move out, serving notices, and accounting to you every month. What they do not do is practice law. An eviction that reaches a courtroom belongs with an attorney, and an honest manager says so early.
What can a manager spend without asking me?
Every agreement sets a repair limit the manager may spend from your funds without approval. Put it where a water heater swap still reaches you and a jammed garbage disposal does not. Ask who does the work, whether invoices carry a markup, and what an after hours callout costs. Ask for contractor invoices attached to the statement rather than one rolled up line.
What happens to the tenant's deposit?
It is the tenant's money that you hold, not income. State law decides where it sits, what notice the tenant gets, whether interest accrues, and how quickly you must return it with an itemized list of deductions. Missing that deadline can cost you penalties far beyond the deposit itself. A manager should keep it in a separate account and record condition with dated photos at move in.
Does a property manager need a license?
In most states, yes. Managing somebody else's property for a fee generally requires a real estate license held under a broker, and some states add their own endorsement on top. Look the company up on the state register rather than trusting a badge on a website. Ask as well about errors and omissions cover and a fidelity bond, since this company will be holding your rent.
How does a management agreement end?
Read the term, the notice period, and what happens if you sell with a tenant in place. Ask who owns the tenant files, the deposit records and the keys on the way out, and get the handover in writing. Some agreements keep a fee running on a tenant the company placed, even after you have gone, which is worth learning before you sign.
Is block or strata management the same job?
No. Running one rental for its owner is one job; running a condominium association or an HOA for all its owners is another. Association managers handle common areas, budgets, reserve studies, board meetings and rules enforcement, and they answer to a board rather than to a landlord. Some firms do both, so ask which department your property lands in.
