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A property manager is a professional or company hired to oversee the daily operations of rental real estate on behalf of the owner. Property management services range from tenant placement only to full-service management including maintenance, rent collection, and financial reporting. Property managers act as intermediaries between property owners and tenants, handling operational tasks that owners cannot or prefer not to manage themselves.

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What This Section Covers

Types of Services

Full-service, tenant placement, lease-only, and specialty management

The Management Process

How property managers handle day-to-day operations

Costs and Fees

Management fees, leasing fees, and additional charges

Owner Responsibilities

What owners still handle when using a property manager

Evaluating Performance

Metrics and indicators of quality management

Comparing Property Managers

Questions to ask and what to look for

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Why Property Management Matters

Managing rental property requires significant time:
  • Responding to tenant inquiries
  • Coordinating maintenance and repairs
  • Handling emergencies
  • Collecting rent and managing finances
  • Marketing vacancies and showing units
Owners who live far from their properties or have limited time often benefit from professional management.
Professional managers typically have established processes for:
  • Marketing to qualified applicants
  • Screening tenants (credit, background, income, references)
  • Verifying application information
  • Selecting tenants consistently and legally
Better tenant selection reduces turnover, late payments, and property damage.
Established property managers often have:
  • Relationships with reliable contractors
  • Volume discounts on services
  • 24/7 emergency response systems
  • Preventive maintenance programs
This can result in faster repairs, lower costs, and better-maintained properties.

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What Property Managers Do

  • Marketing vacant units
  • Showing properties to prospective tenants
  • Processing applications
  • Screening tenants
  • Preparing and executing leases
  • Conducting move-in/move-out inspections
  • Handling tenant communications
  • Enforcing lease terms
  • Managing lease renewals
  • Processing evictions when necessary
  • Collecting rent
  • Pursuing late payments
  • Paying property expenses
  • Maintaining financial records
  • Providing owner statements
  • Managing security deposits
  • Budgeting for capital expenses
  • Year-end tax documentation
  • Responding to maintenance requests
  • Coordinating repairs
  • Managing contractors
  • Conducting property inspections
  • Handling emergencies
  • Overseeing preventive maintenance
  • Managing renovations and improvements

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Types of Properties Managed

Individual houses rented to tenants. May be scattered across multiple locations.Most common property type for third-party management.
Properties with multiple units:
  • Duplexes and triplexes
  • Small apartment buildings
  • Large apartment complexes
Larger properties may have on-site management.
Individual condo units owned by investors and rented to tenants.Property manager handles unit management. HOA handles common areas separately.
Management of homeowner associations and condo associations:
  • Common area maintenance
  • Financial management for association
  • Rule enforcement
  • Board support
  • Vendor management
Different service model than rental property management.
Properties rented on platforms like Airbnb and VRBO:
  • Higher turnover than traditional rentals
  • Different pricing models
  • Guest communication focus
  • Cleaning coordination
  • Dynamic pricing
Specialized managers focus on this segment.
Office, retail, industrial, and other commercial properties.Requires different expertise than residential. Commercial managers handle lease negotiations, tenant improvements, and business tenant relationships.

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When to Consider Property Management

  • Own multiple properties
  • Live far from rental property
  • Have limited time for management tasks
  • Unfamiliar with landlord-tenant law
  • Prefer passive investment approach
  • Properties require significant oversight
  • Uncomfortable with tenant interactions
  • Single property nearby
  • Experienced landlord
  • Have time for management
  • Want maximum control
  • Tight profit margins
  • Enjoy property management activities
  • Long-term stable tenants
Some owners use managers for specific tasks only:
  • Tenant placement only (manager finds tenant, owner manages ongoing)
  • Maintenance coordination only
  • Financial management only
  • Overflow or emergency support

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Cost Overview

Monthly management fee: Ongoing fee for management services, typically calculated as a percentage of collected rent or a flat monthly amount.Leasing/placement fee: One-time fee when placing a new tenant, covering marketing, showing, screening, and lease execution.Lease renewal fee: Fee for renewing an existing tenant’s lease.Additional fees: May include setup fees, inspection fees, maintenance coordination fees, and others depending on the management agreement.
  • Percentage of rent: Most common for residential. Fee based on percentage of collected rent.
  • Flat fee: Fixed monthly amount regardless of rent level.
  • Hybrid: Combination of percentage and flat fees.
See the Costs and Fees section for detailed information.
Property management fees vary significantly by location, property type, service level, and provider. Get quotes from multiple managers for your specific situation.

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Licensing and Regulation

Most states require property managers to hold a real estate license or property management license.Requirements vary:
  • Some states require broker license
  • Some have specific property management license
  • Some exempt owner-managed properties
  • Some exempt certain property types
Verify licensing requirements in your state.
Industry associations provide education and standards:
  • NARPM: National Association of Residential Property Managers
  • IREM: Institute of Real Estate Management
  • CAI: Community Associations Institute (for HOA management)
Membership indicates professional commitment but is not required.

Find Property Managers

Research property management companies in your area.