About Property Management: An Owner's Hiring Guide

Ready to hire a property manager? Start with your property

Keep the property. Get help with the work. A useful management proposal explains the responsibilities included, extra charges, communication process, spending authority, and terms for ending the agreement. Start by deciding what you want handled and which decisions you want to keep.

At Purple Man's Hat, the conversation starts with your rental property and your goals. Tell us what you own, its current situation, and what you want off your plate. Requesting information does not enroll your property or authorize charges.

Use Request My Management Plan to reach our dedicated owner inquiry, or call (227) 272-1831. You can choose Help me decide when you are still comparing rental strategies.

The property location matters even when its owner lives elsewhere. Describe the property you want managed rather than relying on where you are browsing from.

Sources: NARPM: How to Hire a Property Manager; Purple Man's Hat: Contact Us

When should you hire a property manager?

Consider professional management when the responsibilities you want to delegate are worth the proposed cost to you. You may need help with a vacant rental, recurring administration, a property you cannot easily visit, or a handover from another company.

The useful starting question is: What would need to change for this rental to work better for me? Bring a specific answer to the discussion rather than accepting a broad promise of being hands-off.

• For a vacancy or upcoming move-out, ask who prepares and advertises the property, responds to inquiries, arranges showings, and coordinates the application process.
• For recurring workload, identify the messages, maintenance appointments, payment follow-up, and renewal dates you want help handling.
• For remote ownership, ask how visits, contractor access, documentation, and urgent issues will be handled when you cannot be there.
• When replacing a manager, name the missing updates, unclear statements, or unfinished work you want the next arrangement to address.

What does a rental property manager do?

A rental property manager handles agreed responsibilities for a property owner. Common duties include administering rent payments, communicating with tenants, arranging maintenance, checking property conditions, and keeping financial records. The written agreement determines the actual scope; full-service property management is not a definition of everything included.

Use these questions to define the support you need. They are comparison questions, not a statement that every task is included in every company's service or in a Purple Man's Hat proposal.

Ask how applicant screening, private records, and required notices are handled. Consumer reports used in housing decisions carry specific responsibilities; using a screening service does not replace understanding the applicable process.

Separate the manager's responsibilities from the work and expenses that remain yours. Confirm the scope in the written agreement.

Sources: U.S. Bureau of Labor Statistics: Property, Real Estate, and Community Association Managers; NARPM: How to Hire a Property Manager; Federal Trade Commission: Using Consumer Reports — What Landlords Need to Know

How much does property management cost?

Property management may be priced as a percentage of rent, a flat monthly fee, or charges for particular services. The complete cost depends on the fee base, included work, and additional charges in the agreement.

For a percentage-based fee, multiply the rental amount covered by the agreement by the agreed percentage. Ask whether that amount is rent collected, rent charged, scheduled rent, or another basis before comparing proposals.

The table below shows hypothetical calculations only. Its 8%, 10%, and 12% example rates are not Purple Man's Hat's prices and are not a survey of typical market rates.

Each hypothetical row assumes the fee applies to the full $2,500. Repairs, leasing, and other charges are excluded. These are not PMH rates or current market averages.

• Request a written explanation of setup, placement, advertising, renewal, inspection, maintenance-coordination, vacancy, and termination charges that apply.
• Ask about repair reserves separately: the amount provided, where it is held, who can authorize spending, and what happens to unused funds. A reserve is not automatically a management fee.
• Give each company the same annual scenario: property, rent assumption, occupied months, and expected placement or renewal activity. Keep repairs and other ownership expenses in the budget too.

Sources: Zillow Rental Manager: How Much Do Property Managers Charge?

Is hiring a property manager worth it for one rental home?

One rental home can be enough to consider professional management. Compare the proposed fees with your time, travel requirements, and the responsibilities you want to delegate. Ask whether a company accepts individual homes and whether a minimum monthly charge applies.

In a hypothetical example, a home rents for $2,500 a month. One month without a tenant means $2,500 of rent not received. A two-percentage-point difference in management fees on the same rent equals $50 a month, or $600 over 12 fully paid months. These illustrative figures are not a forecast or PMH pricing.

That arithmetic does not mean a manager will prevent vacancy, that higher fees produce better results, or that management guarantees a profit. It shows why the whole operating arrangement deserves attention alongside the monthly percentage.

Self-management may fit when you have the time and systems to do the work. Hiring a manager deserves a closer look when the proposed arrangement addresses responsibilities you no longer want to handle yourself.

How do you choose a property management company?

Choose a rental management company by comparing the proposed scope, relevant experience, reporting, total fees, and contract terms. Check references and verify credentials claimed for the work. General real estate history does not establish experience managing your particular rental type.

Move from broad promises to your actual property. For each proposal, finish this sentence: This company will handle these tasks, I will still handle these responsibilities, and the estimated charges under my assumptions are this amount.

• Ask for a working example. Describe a repair, move-out, or unpaid balance; ask what happens first, who contacts whom, and which decisions require approval.
• Ask to see reporting. An anonymized owner statement or property update can show whether you will understand the records without repeated follow-up.
• Ask what happens when something goes wrong. Clarify spending limits, escalation contacts, contractor arrangements, and documentation.
• Read the agreement before deciding. Review included work, additional charges, contract length, notice requirements, and handover provisions; resolve unclear terms before signing.

Sources: NARPM: How to Hire a Property Manager

How do you switch property management companies?

Start with your existing agreement, then plan the transfer of responsibilities before changing payment or maintenance instructions. A handover needs an effective date and an account of the records, funds, access, and outstanding work involved.

Do not assume a manager change alters an existing lease or removes other obligations. Obtain a review of the relevant agreements when needed. Tell Purple Man's Hat when a property is already managed so the current arrangement is part of the initial discussion.

• Check notice requirements, termination provisions, and any applicable charges in the current agreement.
• Identify how leases, tenant contact information, payment records, deposits, keys, inspections, and open work orders will be accounted for and transferred as applicable.
• Determine who is responsible during the changeover, including work already in progress.
• Confirm where tenants send payments and maintenance requests, when new instructions take effect, and who communicates the change.

Are long-term rental management and Airbnb management the same?

No. Compare proposals against the rental arrangement you intend to operate. Long-term residential management, monthly furnished rentals, and shorter guest stays can involve different responsibilities and operating expenses.

For a long-term rental, ask about tenant communication, lease administration, recurring payments, maintenance, and renewals. For a furnished or mid-term rental, also discuss furniture, utilities, cleaning between occupants, and intended stay length.

For Airbnb property management or vacation rental management, clarify listing access, calendar and pricing control, guest messages, reservations, and cleaning responsibilities. Airbnb distinguishes co-host permissions and responsibilities; confirm who has authority for each task.

Review requirements applicable to the property's intended use. A management arrangement does not establish that a particular rental use is permitted. Describe your arrangement to PMH so the proposal can account for the property and requested work.

Sources: Airbnb: What co-hosts can do; Airbnb: Local legal and regulatory requirements

What can you discuss with Purple Man's Hat?

Purple Man's Hat works with property owners nationwide considering short-term, mid-term, and long-term rental management. Our published management rates are 20% for short-term rentals, 15% for mid-term rentals, and 7% for long-term rentals. These are PMH rates, separate from the hypothetical fee examples earlier in this guide.

The written agreement explains the revenue used to calculate the fee, included responsibilities, separately billed expenses, and operating arrangements. A management percentage does not mean every property expense is included.

The review starts with the address and property information, then relevant rental comparables and an expense-based profitability review. A property visit helps clarify condition, access, and preparation needs. Review the written management agreement before appropriate listing preparation begins.

You can request a plan before choosing a rental strategy. Share the property you want to keep, its current situation, and the work you want help handling. You can evaluate the proposal before deciding to proceed; requesting information does not enroll the property or authorize charges.

Property management questions from owners and landlords

These answers can help you prepare for a property-specific discussion. The written agreement establishes the actual management arrangement.

Sources: Zillow Rental Manager: How Much Do Property Managers Charge?; Purple Man's Hat: Contact Us