So, you’re ready to hire a property manager. Maybe your rental just closed. Maybe your former home is about to become a rental. Or maybe you’ve been trying to self-manage and realized… this isn’t as “passive” as you thought.
No matter how you got here, working with a property manager for the first time is a big step—and one that can dramatically impact your stress level, time management, and bottom line.
The goal? A professional, collaborative relationship that protects your asset and turns your property into a long-term wealth builder.
But first, you need to understand how this relationship works, what you should expect, and what your role still is as the owner.
What Does a Property Manager Really Do?
It’s easy to think a property manager just collects rent and coordinates repairs—but the good ones do so much more.
A full-service property management company acts like your rental business’s operations department. While you own the property, most property managers take care of:
- Advertising the rental through multiple platforms (MLS, Zillow, etc.)
- Resident screening, including background, credit, and rental history
- Leasing: handling the lease signing, deposit collection, and move-in coordination
- Rent collection and enforcement of payment deadlines
- Maintenance: coordinating vendors, handling emergencies, and ensuring repairs are timely and up to code
- Inspections, both move-in/move-out and periodic checks
- Legal compliance, including Fair Housing laws, lease enforcement, and eviction filings if necessary
- Financial reporting, including income/expense breakdowns and end-of-year tax forms (like the 1099)
A good manager should also act as an advisor—alerting you to issues, keeping you updated on local ordinances, and even making recommendations to improve long-term ROI.
What Happens During Onboarding?
The onboarding process is your official kickoff—and it’s not just paperwork.
A professional manager will guide you through several key steps:
1. Property Review & Rent Readiness: They’ll assess your property’s condition and advise if any repairs or improvements are needed to make it rent-ready. If you’re transitioning from personal use to a rental, expect suggestions on paint, flooring, appliances, and safety compliance.
2. Document Collection: This includes:
- Any current leases
- HOA or city rules
- Vendor contacts (if you have preferred ones)
- Insurance and utility information
3. Agreement Signing: You’ll review and sign a management agreement (outlining services, responsibilities, and fees), plus any leasing addendums or maintenance authorizations.
4. Expectations and Preferences: They should ask for your communication preferences, thresholds for maintenance spending (e.g., “Call me for anything over $500”), and anything else that customizes the relationship to your needs.
5. System Setup: You’ll likely gain access to an Owner Portal for financial reporting, repair updates, and communications. Be sure you know how to log in and use it—it’s your window into the property.
How Much Involvement Is “Normal”?
One of the biggest misconceptions new Clients have is that hiring a manager means total detachment. The truth: it’s a partnership.
Yes, your manager is handling the day-to-day – but you’re still the owner. You’re still on the hook for financial decisions, long-term strategy, and tax responsibilities. We encourage our Clients to “Stay invested in their investment.”
Here’s how to strike the right balance:
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Trust them with operations, but review your monthly reports.
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Set clear financial limits, but don’t micromanage every $300 invoice.
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Communicate regularly, but don’t second-guess every decision if things are working.
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If they are local – listen. They should be local experts and know how to get your home rented quickly. Listen to their guidance.
How to Evaluate If Your Manager Is Doing a Good Job
Not every management company is created equal. So how do you know if the one you chose is pulling their weight?
Look for signs like:
- Low vacancy rates
- Quick leasing turnaround
- Consistent communication
- Accurate financials
- Fantastic Online Reviews
- Happy, retained Residents
Also: Trust your gut. If you feel like you’re constantly chasing them for updates or getting vague answers on expenses, that’s a red flag.
Common First-Time Owner Mistakes (and How to Avoid Them)
Let’s call out a few pitfalls we see with new clients—so you don’t fall into them:
Micromanaging maintenance: It’s okay to ask questions, but delays often cost more than trusting your manager’s process.
Not budgeting for repairs: Even well-maintained homes need annual maintenance. Establish reserves or a line of credit to pay for unexpected expenses and vacancies.
Forgetting it’s a business: This isn’t your “home” anymore—it’s a product. Residents expect professional standards.
Treating the manager like a vendor: You hired a partner, not a handyman. They manage people, processes, and property. That’s a big deal.
What Does Indianapolis Property Management Cost?
Most property management companies charge:
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A monthly management fee (usually 8–12% of rent collected)
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A leasing fee (often one month’s rent or a flat fee)
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Maintenance coordination fees (a markup on vendor bills or a flat coordination fee)
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Other possible charges, like renewal fees or inspection fees
Make sure you understand the fee structure upfront, and how it compares to the service being provided. Cheap isn’t always better—especially if it costs you in Resident quality or poor communication.
Why a Property Manager Can Be Worth Every Penny
Here’s the truth: DIY landlords often think they’re saving money… until something goes wrong.
Evictions. Property damage. Extended vacancies. Lawsuits.
A strong property manager helps you avoid all of the above—and keeps your rental humming along so you can focus on scaling, not scrambling.
Not to mention, a professional manager typically:
- Leases homes faster
- Attracts stronger Residents
- Reduces turnover
- Improves compliance and safety
- Saves you from legal landmines
That’s not just convenience—it’s asset protection.
Final Thoughts: Set It Up Like a Business From Day One
Working with a property manager for the first time can feel unfamiliar—especially if you’re used to handling everything yourself (or if you’ve never done this before).
But done right, this relationship will change the game for your rental business. You’ll gain back time, reduce risk, and start thinking like a true investor—not a part-time landlord putting out fires.
And that’s where real growth begins.
Interested in Central Indiana Property Management?
