Property Management
How to Choose a Property Management Company
Find out what to look for to find a partner that can be the right fit.
Owning a vacation rental property can be a lucrative investment, but it often comes with more daily work and isn’t as easy as many owners expect. In fact, managing a successful vacation rental involves many responsibilities, takes time and effort, and can be stressful, especially if you do it from a distance.
So many owners who don’t have the time to manage daily tasks themselves choose to hire professional vacation rental management companies or property managers to handle day-to-day operations. But with hundreds of STR management companies out there offering full-service options, how do you actually find the right one?
In this blog, we’ll talk about how to choose a property management company for your vacation rental investment property and find vetted professionals near you without hours of research. If you are new to the topic, you may start with other articles on whether you should hire a PM and what a PM does.
How to Choose a Property Management Company
Although hiring a vacation rental manager is a good option to ensure that everything runs smoothly, it is not right for every vacation rental property owner. Before deciding to hire a property manager, consider whether self-managing your STR property is a better fit for you.
After all, it all depends on your situation and your budget. For example, if you have just started to rent out your second home to earn an extra income, the cost of hiring a property manager may be too high at this stage, when you may have much profit. However, you can self-manage your vacation rental with minimal effort, even remotely, by automating the hosting routine with good short-term rental software and hiring reliable local cleaners.
If you prioritize passive income or are overwhelmed by the daily tasks of managing multiple rental properties, hiring a property management company or individual property manager can be a good solution. So if you are wondering how to choose a property management company that can be a perfect fit for your needs, here are some things to consider.
Full vs. limited scope
Not all property management companies offer the same services, so first, you should decide what type of services you need and how much control you want to keep.
Are you looking for a full-service partner that will oversee everything, from marketing, bookings, and customer service to maintenance and dealing with neighbor complaints? Or do you only need help with core tasks, like listing rentals online, guest communication, and routine cleanings, and want to retain direct oversight and management responsibilities?
If you live far from your property, have multiple rentals, or want a truly passive income stream, a full-service property management company may be worth the higher commissions. If you live nearby, have time to handle tasks you feel more competent in, and want to keep more of your rental income, hiring a half-service manager could be a good solution.
Local vs. national coverage
National management companies operate in 20-40 markets nationwide, so their team is spread across multiple states. They have standardized systems and a positive reputation, with strong experience. On the negative side, national companies are less flexible with contract terms and pricing, and they are not closely familiar with the local STR market. National companies can be a good option for owners with properties in multiple markets who value brand recognition and don’t need local-specific expertise.
Local property managers are typically focused on a single area, making them experts in the local vacation rental market. They know your area’s STR rules and regulations, busy seasons, and guest preferences, so they can help you make the necessary decisions to ensure the success of your STR business. They tend to be more personally involved in managing rental properties and can offer more customized deals and arrangements. Local management can be right for you if you prioritize local expertise and value personal service and direct communication.
Cost and price structure
The cost of property management services and the pricing structure can vary significantly depending on the level of service, the type of manager (individual vs. company), the property type, and the market. It’s important to know what you are paying for to ensure that you’re getting value for your money. Do they charge fixed rates, or do they take a percentage of your rental income? What services are included in the fee?
With fixed fees, you pay the same amount every month regardless of your property's performance, so this option may appeal to owners who prefer predictable costs, making it easier to manage their budget. Fixed fees are effective in high-demand areas in big cities with steady bookings.
But if you own a property in a seasonal market (like a cabin in the woods near a ski resort or a beach house in a coastal market), a commission-based model can be a better choice. Property management companies' earnings are tied directly to yours, which motivates them to keep your occupancy rates consistent and your pricing sharp to maximize your revenue.
How to Find a Property Manager
Once you have a clear idea of the management services you need and your budget, the next step is identifying promising vacation rental management companies or individual managers in your desired location. So, how do you find a property manager who's perfect for your needs?
Research online and local options. As an owner, you have more options today than ever, from professional associations to online platforms. Look for property managers with a good reputation and strong reviews.
Many property managers operate regionally and show up in Google Business listings. Check reviews from property owners and past guests to identify the pros and cons of working with each provider.
Search OTA sites, such as Airbnb, Vrbo, and Booking.com, for nearby STR properties managed by different companies. You can identify management companies through these listings and then find their direct websites or social media to reach out for references or to see their portfolio in action.
Browse local short-term rental Facebook groups, join industry-specific groups on LinkedIn, or host forums and research referrals from other owners.
Interview multiple candidates and ask them the right questions to dig into the details of their operations and understand whether they can deliver the results you expect.
Find out what experience they have in your local market and assess their experience with managing properties similar to yours
Make sure you fully understand their fees and what services are included in the price
Discuss property management automation and reporting tools that they use to streamline tasks and get insights for optimizing properties’ performance
Ask them how they handle turnover cleanings, maintenance requests, and emergencies.
How to Hire a Property Manager That Is the Right Fit
Not every property manager is the right fit for every vacation rental owner. Some companies and individual managers focus on volume while others focus on tailored services and long-term relationships. Some have extensive experience managing specific types of property, such as large family homes or beach condos, while others manage different types of property in a limited area.
So, how do you hire a property manager whose approach best suits your vacation rental property, your goals, and expectations? Choosing the right property management partner is an important decision that requires thorough research and careful evaluation of your options, which can feel overwhelming.
Hospitable can help you skip the endless search and guesswork. We can connect you with vetted property managers who know your market so you can compare their services and fees and decide who fits your criteria.
Hospitable can help you find the right manager who can deliver services tailored to your needs and help you achieve your goals as a vacation rental owner.
Final Thought
We’ve provided you with tips on how to choose a property management company or individual manager for your vacation rental properties if you’re looking to earn passive income. It’s an important step in your journey as a property owner. The key is knowing your needs and goals, setting clear expectations, and choosing the right partner that can help you turn your rental into a profitable, hands-off investment.
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Common questions
How do you choose the right property management company?
To choose the right property management company, start by identifying your needs—such as the level of involvement you want, the type of property you own, and your budget. Then compare companies based on their experience, services offered, pricing structure, and reputation. Look for a company with proven results, clear communication, and expertise in your specific market. The right property management company should align with your goals, whether that’s maximizing income, saving time, or creating a fully hands-off experience.
What questions should you ask before hiring a property management company?
Before hiring a property management company, ask questions that reveal how they operate and how transparent they are. Key questions include: What services are included in your fee? How do you handle guest or tenant communication? How do you screen guests or tenants? What is your pricing structure and are there hidden fees? How do you handle maintenance and emergencies? How often will I receive reports or updates? These questions help you understand what you’re paying for and whether the company is a good fit for your expectations.
What are the red flags when choosing a property management company?
Common red flags include unclear pricing, lack of transparency, poor communication, and negative or inconsistent reviews. If a company avoids answering direct questions or cannot clearly explain their processes, that’s a warning sign. Other red flags include long-term contracts with heavy penalties, no clear reporting system, and limited experience with your type of property. A reliable property management company should be open, responsive, and able to demonstrate proven results.
How to find a property manager?
You can find a property manager by searching online, checking review platforms, and asking for referrals from other property owners. Local real estate agents and investor communities are also good sources for recommendations. When shortlisting options, focus on companies that specialize in your property type and location. Reading reviews and comparing multiple providers helps you identify reputable property managers before reaching out.
How to hire a property manager?
To hire a property manager, start by researching and shortlisting a few qualified candidates. Compare their services, pricing, experience in your market, and communication style, then interview them to understand how they manage properties and handle day-to-day operations. If you want to simplify the process, Hospitable can help you skip the endless search and guesswork. Hospitable connects you with vetted property managers who know your market, so you can compare their services and fees and choose the one that fits your criteria.