How to Choose the Right Property Manager for your Rental Properties
Owning rental property can be a great way to make some money but managing them is a whole other ballgame. You’ve got tenant issues to deal with, repairs to coordinate, rent payments to chase down, and all the legal stuff you have to keep up with. It can get overwhelming fast. That’s where bringing in a professional property manager can really save your sanity.
Whether you’ve got a cozy single-family rental in OKC or a bustling multi-unit complex in North Texas, picking the right property management (PM) company is one of the biggest decisions you’ll face as a real estate investor.
In this guide, we’re going to break down how to evaluate rental property management companies. We’ll cover the important questions you should be asking and red flags you want to watch out for. By the time you finish reading, you’ll be ready to find a reliable, budget-friendly manager that can help boost your rental income and keep your stress levels down.
Alright, let’s jump into it!
Why Should You Consider Getting a Property Manager?
As a property owner, you probably have wondered: Do I really need a property manager? Maybe you’re fed up with late rent checks, maintenance calls at all hours, or just the hassle of finding trustworthy tenants. Or maybe you want to kick back and be more hands-off.
What Exactly Does a Property Manager Do?
A property management company steps in to take care of all day-to-day tasks that come with being a landlord. That way you can spend your time either growing your property portfolio or enjoying your life.
What do they do?
Finds & screens tenants
Handles rent collection
Manages property maintenance
Ensures legal compliance
✔ Tenant Screening & Placement: A good property manager digs deep to find tenants, running background checks, checking credit, and verifying rental history to keep eviction chances low.
✔ Rent Collection & Financial Management: Property managers take care of rent collection, enforce lease agreements, and even provide you with detailed financial reports.
✔ Property Maintenance & Repairs: These pros coordinate all routine upkeep or emergency fixes, making sure your rental stays in tip-top shape.
✔ Legal Compliance & Evictions: A licensed property manager knows the ins and outs of landlord-tenant laws, ensuring you’re compliant and reducing any legal headaches.
When Should You Think About Hiring a Property Manager?
Many landlords find that bringing in a property manager can save time, cut down on stress, and even boost their profits. Here are a few signs it might be time to team up with a solid PM company:
🔹 You have more than one rental property or you live far away from your investments.
🔹 Tenant problems, maintenance requests, and paperwork are too much for you to handle.
🔹 You’re dealing with high turnover rates or empty units way too often.
🔹 You’re lost when it comes to local rental laws, eviction processes, or fair housing rules; or just don’t want to study property law for hours on end.
If any of these rings a bell, then hiring a pro property manager could be one of the smartest moves you make for your investment. Actually, a study by BiggerPockets found that investors who work with experienced property managers tend to enjoy higher occupancy rates and better cash flow.
In the next part, we’ll look at what to keep an eye out for when choosing a company for your rental, so you can feel confident in your decision.
Key Qualities to Look for in a Property Manager
You want a PM group who’s got the knowledge, the efficiency, and the reliability to make everything run smoothly.
Here’s a rundown of the key qualities you should keep an eye out for:
1. Experience & Local Market Knowledge
A property manager who knows the market trends, rental prices, and what tenants are looking for in your area. For example, North Texas and central Oklahoma have different considerations when it comes to renting, so teaming up with someone who knows your turf keeps your property competitive.
🔹 Ask: How many years have you been doing this in the local area?
🔹 Check: Look up online reviews, testimonials, and maybe even some case studies from other landlords.
2. Licensing & Certifications
Not every property manager is created equal. It’s important to make sure the one you hire is properly licensed and certified. In Oklahoma and Texas, you need a real estate broker’s license to manage rentals legally. Organizations like the National Association of Residential Property Managers (NARPM) offer certifications that show they know their stuff.
🔹 Ask: Are you a licensed property manager? Do you have any ties to NARPM?
🔹 Verify: Check their license number and any professional affiliations they might have.
3. Strong Tenant Screening Process
You want tenants who pay on time and treat your property well. A solid property manager doesn't rush to fill vacancies; they have a thorough screening process that includes:
✔ Credit and background checks
✔ Rental history verification
✔ Income and employment verification
🔹 Ask: What does your tenant screening process look like?
🔹 Confirm: They are following Fair Housing Laws and the regulations in Oklahoma and Texas.
4. Communication & Responsiveness
A reliable PM company should be easy to reach and responsive to both you and your tenants. Poor communication can lead to all kinds of problems. Look for companies that provide:
✔ 24/7 emergency maintenance services
✔ A dedicated owner portal for real-time updates
✔ Regular financial and performance reports
🔹 Ask: How do you handle communication between tenants and landlords?
🔹 Test: Try reaching out with an email or an inquiry to see how quick they are to respond.
5. Technology & Reporting Tools
The best companies are using all the latest tech to make things easier. You want features like:
✔ Online rent payment portals for tenants
✔ Digital maintenance requests and tracking
✔ Monthly detailed financial statements
🔹 Ask: Do you have an online portal for both landlords and tenants?
🔹 Compare: Look at their tech offerings against other property management companies in Edmond.
6. Fair Fees & Pricing Structure?
You really need to wrap your head around the costs involved. Some companies go for a flat fee, while others might take a slice of the monthly rent, usually around 8-12%. But watch out for hidden fees that can creep up on you.
🔹 Ask: Do you have leasing fees, renewal fees, or maybe maintenance markups?
🔹 Compare: Look at the pricing from several property management companies to make sure you’re getting a fair deal.
💡 Pro Tip: Forbes mentions that unclear or excessive fees rank high among landlords' complaints about property management services.
Having a professional manage your property can make all the difference for landlords. Keeping your investment safe also helps you get the most out of it.
Final Decision & Next Steps
Once you have a list of rental management companies that seem to fit what you’re looking for take a moment to consider a few last-minute items:
Take a Close Look at the Management Agreement
Your property management contract spells out all fees, responsibilities, and expectations. Before signing, focus on these key points:
✔ Fee structure: Are all the costs, like leasing fees and maintenance charges, clearly laid out?
✔ Termination clause: What’s the process if you decide to end the contract early?
✔ Responsibilities: Who’s taking care of repairs, evictions, and inspections?
🔹 Ask: “Hey, can we walk through the contract before I put my name on it?”
🔹 Verify: Make sure there are no hidden fees or clauses.
💡 Tip: The American Apartment Owners Association (AAOA) has a great guide that breaks down property management agreements.
Set Clear Expectations Right From the Start
To keep everyone on the same page, it’s important to lay out clear expectations with your rental manager:
✔ How often will you get financial reports?
✔ What’s the expected response time for tenant issues?
✔ How’s the maintenance approval process going to work?
An expert PM company should keep you updated and be totally transparent about everything.
Keep an Eye on Performance & Stay Engaged
Even if you’ve got a top-notch property manager, it’s key to stay in the loop and involved with your rental property.
🔹 Check: Monthly reports, tenant feedback, and any maintenance requests that come in.
🔹 Communicate: Chat regularly with your PM to make sure things are running smoothly.
Conclusion: Making the Right Choice for Your Rental Property
Finding the right property management service is investing in the future of your rental property. By carefully reviewing contracts, setting clear expectations, and staying engaged you’ll help ensure your property stays profitable and in good shape.
Are you in Oklahoma, Dallas-Fort Worth, or the OKC area and are ready to get started with a trustworthy property management company?
NBHD Property Management can set you up for passive income success, without the everyday stress of managing it all yourself.
