Property management is the work of running rental property on a day to day basis: finding and screening tenants, collecting rent, handling repairs, keeping the books and dealing with everything in between. Owners can do it themselves or hire a property manager or management company to do it for them.
The goal is simple to state: keep good tenants in good units, collect the rent, protect the property and give the owner clear numbers.
What property managers do
- Leasing: pricing units, advertising, showings, applications, screening and signing leases
- Rent and accounting: billing, collecting rent, chasing late payments, paying bills, holding deposits in a trust account and sending owner statements
- Maintenance: taking requests, dispatching vendors, preventive work and turnovers
- Tenant relations: answering questions, enforcing the lease, handling renewals and move-outs
- Compliance: fair housing, notices, inspections, licenses and local rules
- Reporting: rent roll, profit and loss and budgets for the owner
How managers are paid
| Fee | What it covers | Typical basis |
|---|---|---|
| Management fee | Ongoing operations | Percentage of rent collected, or a flat monthly fee per unit |
| Leasing fee | Finding and placing a new tenant | Often a share of one month’s rent |
| Renewal fee | Renewing an existing tenant | Flat fee or small percentage |
| Maintenance markup | Coordinating repairs | Percentage on vendor bills, if any |
For example, a manager charging 9% on a $2,000 rent earns $180 a month for that unit. Over a year that is $2,160, plus any leasing or renewal fees in the agreement. Read the management agreement closely; the fee list matters as much as the headline percentage.
Self management vs hiring a manager
Self management saves the fee and keeps decisions in the owner’s hands. It works best for owners who live nearby, have a few units and can respond quickly. Hiring a manager makes sense when the portfolio grows, the property is far away or the owner’s time is worth more elsewhere. Either way, the work itself is the same; only who does it changes.
What to look for in a manager
- A license where the state requires one
- Clear fees and a written management agreement with a fair exit clause
- Separate trust accounts for rent and deposits
- Monthly statements and online access for owners
- References from owners with similar properties
How TenantLoop fits
TenantLoop is software for both self managing owners and management companies. It handles online rent collection, applications and leases with e-signature, work orders, rental accounting and owner statements, with an owner portal where owners see their numbers without asking.
Related terms
Where it gets confusing.
How much does a property manager cost?
Many residential managers charge a monthly fee based on a percentage of rent collected, often somewhere in the high single digits to low teens, plus leasing and renewal fees. Fees vary by market, property type and services.
Do property managers need a license?
In most states, managing rentals for someone else requires a real estate broker license or a property management license, though there are exceptions. Owners managing their own property usually do not need one.
Can I manage my own rental property?
Yes, and many small landlords do. The work is manageable with good systems, but it takes time, local availability and knowledge of landlord-tenant law.