Compare property management proposals beyond the monthly fee
Two proposals can name the same service and charge for it differently. Follow each one through a vacancy, a repair, and the end of the agreement.
One proposal has a lower monthly fee. The other includes work that the first charges for separately. See what each agreement would do with the same rental. Start with the full draft contracts and fee schedules, then follow the money through events your property could face. If you're still deciding which companies to approach, the manager-selection guide covers that earlier step.
What earns a fee?
Look at the amount each company uses to calculate its compensation. A charge based on rent collected can behave differently from one based on rent due. Minimum charges, exclusions, and payment dates also affect the result. Read the definition beside the percentage or fixed amount.
Then look at what earns a separate charge. For example, a proposal might group lease preparation with resident placement while another lists them separately. The same service name can cover different work. If a schedule is missing or the proposal conflicts with the contract, get the difference resolved before calculating a total. TREC directs questions about interpreting these private agreements to a private attorney.
Run the same rental through both proposals
Use your own rent and expense assumptions. Begin with an ordinary occupied month, then try a vacancy followed by a new lease. Include the same gap between tenancies in both calculations. Which charges continue while no rent comes in? Which begin when a lease is signed or a payment is collected?
Next, try a renewal with a routine repair. Count the vendor's invoice separately from any fee for coordinating the work. If the wording leaves you guessing whether two charges apply to the same event, ask the company to show how it would calculate that example. A useful answer explains the work included as well as the amount owed.
Money held for the property is another part of the comparison
An agreed repair reserve affects how much cash you must provide and what can be distributed to you. It is different from compensation the company earns. Check when you must replenish it and whether pending bills can delay a distribution.
The repair terms also need to fit your preferred involvement. Compare what each manager can approve without contacting you, what requires your approval, and how urgent work is handled. A proposal that needs frequent owner decisions may suit someone available during the day; it may fit poorly if you are difficult to reach.
Read the ending terms before signing
Try the same hypothetical end date under both agreements. Check the required notice, charges that could continue, and responsibility for unfinished work. Look for the transfer terms for money and property records. An attractive starting arrangement may come with later obligations that matter if you sell or change managers.
Use the table to keep those differences beside the fee comparison. Have important clarifications included in the final agreement where needed. Once the terms are clear, you can choose based on the work you need and the costs you understand. Lauren can discuss the property management scope you would want a written proposal to cover.
Scroll across to compare all columns →
| What to compare | Find this in each proposal | Try it with the same example |
|---|---|---|
| Management fee | What the fee is based on, minimums, and exclusions | Use the same rent receipts and payment dates. |
| New lease and renewal | What starts a charge and which tasks it includes | Check whether more than one charge applies. |
| Vacancy | Fees that continue and the work they cover | Use the same time between residents. |
| Repairs and cash held | Vendor bills, management fees, reserve requirements, and spending limits | Keep fees separate from money held to pay property bills. |
| Ending the agreement | Notice, continuing fees, unfinished work, and transfer terms | Use the same end date for both agreements. |
Your checklist
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Sources & further reading1
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