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Beginner's guide to hiring a property manager

New to renting out a home in Pensacola or on the Mississippi Gulf Coast? Here's how to decide whether you need a manager, what it will cost and how to pick one.

1. Decide: do it yourself or hire a manager

   Managing a rental yourself saves the fee but takes time: marketing, showings, screening, rent collection, repairs, inspections and emergencies. A manager makes more sense if you live far away, are moving with the military, own several units or would rather not take tenant calls. Our DIY vs. manager comparison walks through the trade-offs.

2. Estimate your rent

   Look at similar rentals near you: same bedrooms, size, condition and school zone. Listing sites and a few manager opinions will give you a range. A good manager should show you the comparable rentals behind their suggested price. This site doesn't publish rent estimates.

3. Estimate what management will cost

   Use the fee calculator with your rent. It starts with the most common published Pensacola rates (10% monthly and a leasing fee of 50% of one month's rent). Then add any extras from our hidden fees guide, such as setup, inspection and renewal fees.

4. Build a shortlist

   Use the comparison table to filter by area, sort by fee or rating and open company profiles. Pick three or four. Only 10 of 29 companies we track publish fees, so plan to ask the others for written quotes.

5. Interview each manager

   Ask the same questions of everyone so you can compare their answers. The key ones are below. Use the printable checklist during calls.

   Fees & contract

   • What is the monthly management fee, and is it charged on rent due or rent actually collected?
   • Is there a monthly minimum fee?
   • What is the leasing / tenant placement fee, and is there a placement-only option?
   • What do you charge for a lease renewal?
   • Are there setup, onboarding, admin, technology or annual fees?
   • Do you mark up maintenance or vendor invoices? By how much?
   • Do you charge anything while the property is vacant?
   • How long is the contract, and what does it cost to cancel early?
   • Can I see every fee in writing before I sign?

   Tenants & leasing

   • How do you set the asking rent? Can I see comparable rentals?
   • How do you advertise, and who pays for advertising?
   • What are your tenant screening standards (credit, income, rental history, background)?
   • How long do your listings usually take to rent?
   • Do you offer a placement guarantee? What exactly does it cover?
   • Who handles move-in and move-out inspections, and do I get photos?

   Maintenance & inspections

   • Up to what dollar amount can you approve repairs without asking me?
   • Do you use in-house staff or outside vendors? Are vendors licensed and insured?
   • How are after-hours emergencies handled?
   • How often do you inspect occupied properties, and is there a fee?

   Money & reporting

   • When are owner payouts sent each month?
   • Where are security deposits and rents held (escrow/trust account)?
   • What reports do I get monthly and at year-end (including a 1099)?
   • Is there an online owner portal?

   Problems & storms

   • How do you handle late rent and evictions? What does an eviction cost me?
   • What is your plan before and after a hurricane or tropical storm?
   • How will you document storm damage for my insurance claim?

   Licensing & fit

   • Is the company or broker licensed in this state? (Check the FL DBPR or MS Real Estate Commission lookup.)
   • How many properties does each manager handle?
   • Who is my day-to-day contact, and how fast do you reply?
   • Can you give me references from current owners?

6. Read the management agreement

   Before signing, check: every fee and when it's charged; the contract length and cancellation terms (including any fee for canceling or for keeping a tenant the manager placed); the repair approval limit; how and when you're paid; who holds the security deposit; insurance requirements; and what happens when the agreement ends. If something you were told isn't in writing, ask for it to be added.

7. Onboarding

   Expect to provide keys, codes, the current lease and deposit records (if the home is rented), HOA rules, warranties, appliance details, your insurance policy, your preferred vendors, a W-9 and bank details for payouts. Many managers do a move-in inspection with photos. Ask for a copy. Some charge a setup fee; in Pensacola, published setup or onboarding fees run $100–$250.

8. What to expect each month

   Typically: rent is collected, the management fee and any repair costs are taken out, and you get a payout with a statement. Year-end usually brings a summary and a 1099. Read each statement. Look for repair charges you didn't expect, check that rent was collected in full, and note how fast the manager replies when you have a question.

General information only. This guide is not legal, tax, insurance or financial advice. Rules change, so confirm details with the company, your insurer, a licensed professional or the relevant agency.