How do you choose a property management company? Most owners compare on one number, the monthly fee. It’s the least useful comparison you can make. Here is what to ask instead.
Are they licensed?
In Florida, anyone who leases or manages property for others for compensation generally needs a real estate license issued by the state. You can look up any company or individual on the DBPR website in about a minute. Do it.
What are the property management fees, and what’s extra?
Typical property management fees in South Florida run about 8% to 12% of monthly rent for residential property. That number alone tells you little. Ask for the full list: leasing fee, renewal fee, maintenance markup, inspection charges, setup fee, eviction coordination, early termination. A company at 8% with five add-ons can cost more than one at 10% with none. Get it in writing before you compare.
How do they screen tenants?
Ask to see the written criteria. If there aren’t any, that’s a fair housing problem waiting to happen, and it becomes yours. Ask whether they verify income with the employer or just accept pay stubs. Fake ones are easy to buy online. Here is how we handle tenant screening.
Where is the money held?
Tenant deposits and your rent should sit in a trust or escrow account, separate from the company’s operating funds. Ask how often they reconcile it, when owners get paid after rent collection, and what the monthly owner statement looks like. Ask for a sample.
How do they handle maintenance?
Ask who does the repairs, whether vendors are licensed and insured, and what dollar amount they can spend without calling you. Then ask whether invoices are passed through at cost or marked up. Maintenance is where a cheap monthly fee often gets made back.
Do they know your building type and area?
Managing a single-family home in Homestead is different from a condo on Brickell or a retail strip in Davie. Ask what they manage near you, and whether they do residential, commercial, or both. For condos, ask how they handle association approvals, because a slow one costs you weeks of rent.
What happens in a hurricane?
A real answer includes preparation before the storm, an inspection after, photos for the insurance claim, and vendors lined up before everyone else calls them. A vague answer tells you what September will be like.
How do you get out?
Read the termination clause. Thirty days’ notice with no penalty is reasonable. A contract that locks you in for a year, or charges you the remaining fees to leave, tells you they expect people to want out.
Who will you actually talk to?
Meet the person who’ll manage your property, not just the one who sells the service. Then call at 4:45 on a Friday and see who picks up.
If you want to put these questions to us, get in touch. For the other side of the decision, read what a property management company does for landlords.
Common questions
What is a normal property management fee in Florida?
For residential rentals, most companies charge roughly 8% to 12% of monthly rent, plus a leasing fee for placing a new tenant. Commercial fees are usually lower as a percentage and negotiated per property.
Does a property manager in Florida need a license?
Generally yes. Leasing or managing property for others for compensation requires a Florida real estate license, which you can verify on the DBPR website.
Can I switch property management companies mid-lease?
Usually. Your tenant’s lease stays in place. Check the termination clause in your current management agreement for the notice period and any fees.
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