I’m in a bit of a situation and could really use some general advice. I’m moving out of state and need to rent out my property, but this will be my first time doing so, and I’m feeling a bit overwhelmed by the whole process. I’m worried about a lot of things like what needs to be fixed in the house to having an above ground pool being an issue.
I’ve decided that I’d rather not manage the property myself, so I’m looking into hiring a property management firm. The problem is, I’m not sure what to look for in a good property manager, or how to make sure I’m not getting taken advantage of. I want to make sure I find someone trustworthy who’ll handle everything from tenant screening to maintenance, but I also don’t want to end up with hidden fees or unexpected issues down the road.
Have any of you had experience using property management firms? What should I be asking them? Any tips or red flags I should be aware of when renting for the first time? Also, if there are any steps in the renting process that I should be prepared for, I’d love to hear about them!
I really appreciate any advice or personal stories you can share. Thanks so much!
Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
I own a property management firm in Nashville. Some things that I would ask. I would first interview the property manager to understand their background and how they operate. There are some full service property management companies, but sometime realtors will do it on the side. It's up to you to decide which route you want to go. The next thing I would ask about is their processes. 1) How do you place a tenant? 2) Do they provide you with easy access to accounting records? 4) What is process for handling repair/maintenance requests? 5) do they have an eviction process.
Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.
To avoid going through the same poor experience, keep reading.
Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
I look for good reviews from owners, and someone with systems in place. In my experience, a PM that has multiple hours for phone calls with you is a red flag. A good PM should have hundreds of doors without that much capacity for phone calls with every owner. Instead, they have great systems to make the management processes automatic.
Hello Jim! Property managers are a great idea if they are good. Get references from other investors and local real estate groups! Check them out on the web for reviews. Look up their name to see how many court cases they have been involved in. MAKE sure you read their contract in full! I see so many people get in awful situations only to find out "it was in the contract"; specifically getting out of the contract if need be. I wish you the best going forward!
My advice is to talk to an investor-friendly real estate agent in your area. Agents work with PMs all the time and know who’s reliable and who to avoid. They’ve seen firsthand how different firms handle vacancies, maintenance, and tenant issues.
When interviewing PMs, ask about their fee structure, how they handle repairs, and their screening process. A good PM should protect your investment, not just collect rent.
Don't forget public records do not lie. If you have access to public records look up your management company and see how many evictions they file on a regular basis. If you don't have access to that as a free service there are services that you can pay a small amount or you can go down to the courthouse and get that information. It is very easy to get google ratings up. Look at tenant comments that include, they made me pay for something broke, or they notice me within a few days of non payment. If there is a rent escrow option for tenants, call the local governing agent and see how many tenants have put rent in escrow against the company. Always, always talk the broker who runs the company. I recommend choosing a firm where the broker participates. NO rent-a-brokers. No unlicensed companies. Lastly, ask for 3 or 4 references of clients they have been working with for more than 2 years. Do not rely on internet searches because it is too easy to get numbers up quickly. And call other companies. At least 3 and then go out and meet them. There are quite a few companies here in Toledo that have paid their way to get a lot of acknowledgement. I spend a lot of my time cleaning up poor performing properties from companies that call themselves experts. If they have not been licensed for at least 5 years as a broker I would not want to be their experiment.
Totally understand where you're coming from—your first time renting out a property and doing it from out of state can definitely feel overwhelming. You're smart to look into hiring a property management company (PMC), especially since you'll be handling things remotely.
Here are a few tips that might help you navigate the process:
1. Interview multiple PMCs – Don’t go with the first one you find. Ask about:
How do they handle tenant screening (do they check credit, verify income, call past landlords?)
Their maintenance process (do they get approval before making repairs over a certain amount?)
How often do they inspect the property
Their communication style and how frequently you'll get updates
2. Read the management agreement carefully – It should clearly outline:
What’s included in the monthly fee
What services are considered extra
Termination clauses (how and when you can end the relationship if needed)
3. Ask for references – Try to speak with current or former clients, ideally those who’ve used them for a few years.
4. Be cautious of red flags like:
Vague answers about how they handle issues
Contracts that are overly simple or too complex to follow
No clear process for tenant selection or rent collection
5. Regarding the home itself, consider getting a pre-rental inspection or walk-through from a third party or even the PM once hired. That way, you’ll know what needs to be repaired, and whether something like an above-ground pool poses a liability (some PMs may require you to remove it due to insurance or safety concerns).
Taking the time now to ask the right questions will save you a lot of headaches down the road. You’ve already taken a great first step by reaching out to the community here!
I’m in a bit of a situation and could really use some general advice. I’m moving out of state and need to rent out my property, but this will be my first time doing so, and I’m feeling a bit overwhelmed by the whole process. I’m worried about a lot of things like what needs to be fixed in the house to having an above ground pool being an issue.
I’ve decided that I’d rather not manage the property myself, so I’m looking into hiring a property management firm. The problem is, I’m not sure what to look for in a good property manager, or how to make sure I’m not getting taken advantage of. I want to make sure I find someone trustworthy who’ll handle everything from tenant screening to maintenance, but I also don’t want to end up with hidden fees or unexpected issues down the road.
Have any of you had experience using property management firms? What should I be asking them? Any tips or red flags I should be aware of when renting for the first time? Also, if there are any steps in the renting process that I should be prepared for, I’d love to hear about them!
I really appreciate any advice or personal stories you can share. Thanks so much!
Start by researching PM's in your area; ask for recommendations, search BP as this is a common question. I would also advise you to learn all the tenant laws for your jurisdiction and find out how the PM deals with situations (ie, evictions). Typically PM's fee is about 8-10% (D.C. area stat) of the rent monthly. So when you're shelling out that portion of your income you should vet several. Get a feel of how they conduct their business, how they respond to call especially in the middle of the night. Reduce the amount of calls by giving your home a good long hard look, have your servicers come out and make sure everything is up to date/in good working order. This will help with less headaches down the road. Good luck!
