Are You Overpaying for Property Management? Key Factors to Consider

[Enrique Jevons]

When evaluating property management companies, many investors are surprised by how much fees and services can vary. Some companies, particularly those backed by venture capital, charge high monthly fees along with steep leasing commissions and additional renewal charges. In markets like Seattle, for example, it’s not uncommon to see fees upwards of $170/month, a 50% leasing fee, and extra charges just to renew a lease.

Before signing a management agreement, make sure you consider these key factors:

✅ Reputation and Experience
Look into how long the company has been in business and read reviews from current and past clients. A solid track record and strong online reputation can offer peace of mind about the quality of service you'll receive.

✅ Services Offered
Not all property managers provide the same scope of services. Ensure the essentials are covered: tenant screening, rent collection, maintenance coordination, regular inspections, and emergency response. And double-check whether these are included in the base fee or charged separately.

✅ Fee Structure
Make sure you understand the full pricing breakdown, including monthly management fees, leasing fees, renewal fees, and any hidden charges. These costs can add up quickly and impact your ROI more than you might expect.

✅ Technology and Tools
Top-tier companies often use advanced property management software that improves communication, simplifies financial reporting, and provides transparency. This is especially valuable for out-of-state or remote investors.

✅ Availability and Responsiveness
Communication is critical. Pay attention to how easy it is to reach the company and how quickly they respond to inquiries. A slow or unresponsive manager can create unnecessary stress and delays, especially during tenant or maintenance issues.