How to Choose a Property Manager

Start with scope, not price. Two firms quoting the same percentage can be offering completely different services. Get it in writing: who handles leasing and at what cost, who coordinates maintenance, who fields tenant calls after hours, who prepares notices and represents you at hearings, and what happens when a unit sits vacant. A cheap rate attached to a thin scope is not a saving — it is unbilled work that lands back on you.

Understand the fee structure fully. Common charges include a monthly management fee (a percentage of collected rent or a flat amount per unit), a leasing or tenant-placement fee, a lease renewal fee, a maintenance coordination markup, an inspection fee, and setup or offboarding charges. None of these are unreasonable on their own. What matters is that you can see all of them before you sign, and that the manager earns on performance rather than on churn. Be cautious of a structure that pays a manager more each time a tenant leaves.

Ask how money is handled. Rent should flow into a dedicated trust or client account, separate from the manager's operating funds, with owner distributions on a fixed date each month and a statement showing every dollar in and out. Ask who has signing authority, what the spend threshold is before they need your approval, and how quickly they can produce a year-end package for your accountant. A manager who is vague about money handling is telling you something important.

Test responsiveness before you hire. Email them a real question on a weekday afternoon and see how long the reply takes and how it reads. Call the after-hours line. If it is hard to get a clear answer from a firm courting your business, it will be harder once you are one of hundreds of doors.

Ask about screening and legal process. In Ontario, tenant selection is governed by the Human Rights Code and the Residential Tenancies Act, and the paperwork matters — the standard lease, proper notice forms, and correct filings. Ask what their screening process includes, how they document it, and who handles Landlord and Tenant Board matters. Whether they use a licensed paralegal or a lawyer, you want to know before you need one, not after.

Ask about scale and coverage. A manager with thousands of units has systems but you may never speak to a decision-maker. A very small operator gives you attention but may have no backup when they are away or sick. Ask directly: how many properties does the person handling my file carry, who covers when they are unavailable, and how far are they from my property? For rural, shoreline, and seasonal properties, distance is not a detail — it determines how fast someone can actually get there.

Insist on reporting you can read. A monthly statement, maintenance records with photos, inspection reports with dates, and a clear record of tenant communication. If you own a vacant or seasonal property, documented and time-stamped inspection reports also matter to your insurer.

Read the agreement before you sign it. Look for the term length, the termination clause and notice period, any penalty for leaving early, whether the manager can sign contractors or leases on your behalf without approval, the indemnity language, and what happens to your records and deposits at the end. A one-year term with a reasonable notice period is normal. A long lock-in with a punitive exit is not.

Questions worth asking, verbatim: How many properties do you manage and how many does my point of contact handle? Who answers emergencies at 2am, and what is your target response time? How is my rent money held? What is your average vacancy period in my market? Can I see a sample owner statement and a sample inspection report? What is your fee for placing a tenant, and do you charge again at renewal? How do you handle a tenant who stops paying? Can I speak with two current owner clients?

Warning signs: reluctance to provide a written agreement or references, fees that only appear after signing, no separate trust account, no documented inspections, pressure to decide quickly, and promised rents notably above what comparable listings support. Confident managers are happy to be checked.

Finally, weigh fit. The right manager for a twenty-unit building in a city is not necessarily the right manager for a shoreline cottage or a rural single-family rental. Ask whether they actually work in your market, with your property type, at your scale — and whether you would be comfortable having them speak for you.