A property manager handles tenant screening, rent collection, maintenance, legal compliance, and day-to-day operations for a fee (typically 8-10% of monthly rent plus a leasing fee). Hire one if you don't live near the property, don't want to deal with tenants, or have multiple units. Manage it yourself if you're local, want to save money, and can handle the responsibility.
What Property Managers Do
A property manager handles everything from marketing vacancies and screening tenants to collecting rent, coordinating maintenance, and managing evictions. They also ensure compliance with Texas landlord-tenant laws, fair housing regulations, and lease agreements. For out-of-town landlords, a good property manager is essential.
Cost Breakdown (8-10% Monthly, Leasing Fee, Maintenance Markup)
Typical property management fees include: 8-10% of monthly rent for ongoing management, a leasing fee (often 50-100% of one month's rent) when a new tenant moves in, and a markup on maintenance work (typically 10-15%). These costs add up but are tax deductible as a business expense.
When to Hire One (Distance, Time, Scale)
Hire a property manager when you live far from the property, don't have time to handle tenant issues, or own multiple properties that create too much work. Many investors use a manager once they own 3-5 properties because the time commitment becomes significant.
When to Self-Manage (Local, Single Unit, Hands-On)
Self-manage when you live near the property, own just one or two units, and enjoy the hands-on work. Self-managing saves the management fee (8-10%) and gives you direct control over tenant selection and property care. Many investors start by self-managing and hire a manager as they scale.
How to Choose a Manager (Licenses, Reviews, Communication)
Look for a licensed property manager with good reviews, clear communication, and a track record in your area. Ask about their tenant screening process, maintenance response times, fee structure, and how they handle evictions. Interview 2-3 managers before choosing.
Texas Landlord-Tenant Law Considerations
Texas has specific landlord-tenant laws around security deposits, eviction procedures, and required disclosures. A professional property manager stays current on these laws, reducing your legal risk. If you self-manage, invest time in understanding Texas property code requirements.