Choosing the Right Property Manager

Hiring a property manager is one of the most important decisions you’ll make as a real estate investor. Your manager—and the company behind them—can either maximize your investment’s potential or cause you endless headaches.

Before you sign on the dotted line, here’s what you need to know to choose wisely.

Property Manager vs. Property Management Company: Know the Difference

There’s an important distinction that often gets overlooked:

• Property Management Company: A good company should bring value through consistency, accountability, and strong internal systems. They are responsible not just to the client, but also to investors, residents, vendors, and regulatory bodies. High-quality companies reduce your liability and protect your investment.

• Property Manager: Even within a good company, the individual property manager matters. A great company paired with a poor manager—or vice versa—can still cause issues. In Texas, single-family property managers must be licensed, adding an extra layer of professionalism you should expect.

Bottom line: You’re hiring both a company and a person. Evaluate them separately and together.

1. Relationships Matter More Than You Think

Property management is a relationship business. A great first impression from a manager isn’t about them pitching their services—it’s about them asking questions about you.

Key things to look for:

• Are they genuinely interested in your goals and concerns?

• Do they aim to understand your property, your investment strategy, and your expectations?

• Is there mutual respect and trust from the start?

And remember: Don't fall into the “price tag trap.” A lower fee doesn’t mean better service—and it could cost you more in the long run.

2. Understand Exactly What Services You’re Getting

Not all property management companies offer the same range of services. And not everything a salesperson says will necessarily be in the contract.

Be sure to get clarity (and confirmation in writing) on:

• Rent collection and processing

• Leasing and tenant placement

• Maintenance coordination and emergency repairs

• Eviction handling

• Regular property evaluations

Also, know the difference between full-service management (they handle everything) and co-management (you stay more involved). Full service often delivers better long-term value and fewer operational headaches.

3. What Guarantees Are in Place?

The best property managers don’t just make promises, they back them up with guarantees.

Look for guarantees like:

• Maintenance re-checks: No extra charge if the same issue recurs.

• Eviction protection: No administrative fees for evictions if they placed the resident.

• Satisfaction guarantees: Clear standards showing they stand behind their service.

These details show how confident they are in their systems, and how seriously they take your investment.

4. Don’t Obsess Over Fees (Until the End)

Yes, fees matter, but they should come after you evaluate relationships, services, and guarantees.

Typical property management fees range from 6% to 10% of the monthly rent, depending on property type and services included. A slightly higher fee is worth it if it means better service, better tenant retention, fewer vacancies, and higher overall returns.

Tip: Focus on value, not just cost. A great property manager pays for themselves many times over.

Want More Insider Tips?

At the end of the day, choosing the right property manager comes down to trust, clear communication, and mutual understanding. When you build the right partnership, efficient management, competitive fees, and smoother operations naturally follow.

For more expert advice on real estate investing and property management, don’t forget to like and subscribe to the Navigate Invest Podcast! Join us and stay a step ahead in your investment journey.