How To Choose A Property Management Company
Real estate investors need an excellent local property manager to protect their investment. Our “How To Choose A Property Management Company” shows 5 ways to check them out
KEY TAKEAWAYS
- We explain the importance of hiring a property management company to protect housing investments.
- How to find an experienced property manager specializing in housing.
- How to verify professional licenses and certifications.
- What to ask when checking reviews and references.
- What to look for in a property management agreement.
- Verifying that property management companies are insured.
Why is a Property Management Company Important?
Investing in housing is not considered a passive income venture. That’s because profits depend on finding good tenants who stay long-term, pay rent promptly, and don’t create problems.
As an investor, you must treat your rental properties as valuable assets. Thus, you need proactive professional management to protect your property. Would you let your in-law manage your stock portfolio? Unless he or she is an experienced successful portfolio manager, your answer is “No”.
The same principle applies to managing housing investments. Hiring a live-in college student as your “property manager” in a large apartment complex won’t cut it. You need an experienced, licensed, professional property manager who responds quickly to every emergency.
An option is to self-manage your housing investments as the landlord. It may work out if you rent a single-family home or live in a duplex and rent the second unit. Yet, if you manage more than two rental units it becomes complicated.
To save time read our blog posts explaining the perils of being your own landlord:
- Biggest Landlord Mistakes;
- Landlord Liabilities; and
- Landlord Mistakes Limit Profits (What You Need To Know).
How to Choose a Property Management Company?
Choosing the best property management company requires scrutiny. You don’t want a mediocre company costing you lost profits. Instead, you want one that protects your investments as if they were their own.
Here are 5 ways to see if a property management company fits your investment.
1. Seek an Experienced Housing Specialist
You wouldn’t consult with a foot doctor if you need heart surgery. The same goes for the complex industry known as property management. A commercial real estate management company is as good as a foot doctor performing heart surgery.
A housing specialist property management company needs to specialize in these vital areas:
- Federal, state, and local housing laws including anti-discrimination and landlord-tenant;
- A solid record managing tenants in homes and multi-family housing;
- Specifically, experience handling your type of housing investments;
- Avoiding real estate agents moonlighting as property managers; and
- Years of experience managing your type of housing investments.
Let’s say you own several single-family homes you rent. The types of questions you should ask are:
- How many years did you manage rental properties?;
- Currently, the number of rental houses you manage?;
- How many times did you evict a tenant?; and
- Explain your accounting system for keeping track of deposits, rent payments, expenses, and annual profits?
2. Verify Professional Certifications and Licenses
Most states license and certify professional property management companies. Many let you go online to search for all licenses and certifications through their website portal. Check out every company you are considering hiring.
In California, property management companies are licensed and regulated. The California Department of Real Estate requires property managers to hold a real estate broker’s license. Plus, the licensed broker supervises all employees to make sure they follow all real estate laws or face license revocation or suspension.
Verify if the California company’s property manager is currently a licensed real estate broker and of any complaints filed in the past.
See if the companies you are considering are members of the property management industry and real estate associations such as:
- “The National Association of Residential Property Managers”;
- The National Association of Realtors; and a member of a
- Local Realtors or Property Managers organizations.
3. Check References and Reviews
Check out Google and Yelp online reviews of each company. Read their Facebook page comments.
Tip: Know that comments on review sites are open to anyone including unhappy evicted tenants with revenge in mind.
- Do their websites show testimonials from happy clients that you can contact for verification?
- Do the local Chamber of Commerce and Better Business Bureau sites contain reviews of the company?
- Ask for current and recent tenant and client references. Contact every one of them.
Ask tenants about:
- How quickly do they respond to emergencies and repair issues?;
- Was the property well maintained?; and
- Does the tenant plan to renew the lease (happy tenants remain longer)?
Ask property owners about:
- How clear and transparent their fees are?
- Does the company quickly respond to client inquiries?;
- Do checks or direct deposits arrive on time?;
- How proactive are they when maintenance and repairs are needed?: and
- Do they quickly prepare vacant units and advertise for new tenants?.
4. Read the Property Management Agreement
Your business relationship is defined in the property management agreement. All of their responsibilities and tasks are spelled out in the agreement. This is an important contract requiring your careful review.
If the agreement contains legal jargon or terms you do not understand it’s safer to have an experienced real estate attorney explain it to you. Otherwise, you will depend on the company’s representative interpretation which may leave out important issues.
Make sure the contract includes everything you need before signing it.
A typical property management contract includes:
Services and Fees: Expect to see typical services like collecting rent, advertising and filling vacancies, maintaining the property, resolving tenant issues, and evicting tenants. Make sure all fees are clear and transparent (no hidden fees). Also, how they handle maintenance and repairs with your prior approval for excessive expenses.
Owner Responsibilities: The contract may include your responsibilities. Such as prior notice if you put the property for sale or want to terminate the contract. If you see any duties you do not wish to do point them out and see if the property manager will perform them.
Duration of Contract and Termination: The contract must have an expiration date specifically stating when it starts and ends. Most contracts are for one year. Others may allow for an automatic extension unless you inform them in writing of your intention not to extend it. Make sure it includes breach of contract rules long with timelines and termination fees.
5. Verify They Are Insured
To protect yourself, the company must carry these insurance policies:
- Errors & Omissions (E&O);
- General Liability; and
- Property Casualty.
Tip: Expect their contract to require that you also have insurance policies to cover property damage and liability in case property defects harm tenants and visitors.
How To Choose A Property Management Company Conclusion
In conclusion, our how to choose a property management company post offers these suggestions:
- Look for experienced housing property managers;
- Verify their licenses and certifications;
- Check their references and reviews;
- Review the property management contract; and
- Verify their insurance coverage.
Need Property Management Services in San Diego County?
WeLease Property Management Company offers experienced, licensed, professional services throughout San Diego County. Whether you own single-family home rentals, multi-family units, or large apartment buildings and complexes, we can handle all your landlord needs.
WeLease is a proud member of the following professional organizations:
- “National Association of Residential Property Managers”;
- “National Association of Realtors”; and
- “The Greater San Diego Association of REALTORS®”.
Hire The Best in San Diego
WeLease was recognized amongst the Best Property Managers in San Diego by Expertise.com for 2021 with an A+ for Professionalism and an A for Reputation.
With your help, we can win again in 2022!
Contact Us today if you are thinking of investing in San Diego County housing or are a landlord needing assistance with property management services.
Steven Rich, MBA – Guest Blogger
HAVE ANY QUESTIONS?
Let us know, we’d love to help:
Call: (619) 787 – 4066
or Click: www.WeLeaseUsa.com/contact
WeLease Property Management Company
Reviewed and Approved by Billy Colestock & Yesenia Nogales
WeLease Co-Founders & Licensed REALTORS®
This article was written by a WeLease Guest Blogger and reviewed by industry experts Billy Colestock (DRE# 01771188) and Yesenia Nogales (DRE# 01487100), Co-Founders of WeLease Property Management. Both are licensed REALTORS® and active members of the National Association of REALTORS®, California Association of REALTORS®, and San Diego Association of REALTORS®, where they are regularly invited to educate the real estate community on proactive property management, legal compliance, and rental best practices. Every article reviewed reflects WeLease’s ongoing commitment to quality, accuracy, and trusted guidance for homeowners and investors. WeLease Credentials: NARPM® Member, BBB Accredited, MLS Participant, Equal Housing Opportunity. Recognized as San Diego’s Best Property Management Company – Union-Tribune Winner (2022, 2024); Finalist (2023, 2025). DRE: 02047533
