Hiring a Property Manager? Avoid These Mistakes

Hiring the wrong PM is worse than self-managing

A good property manager saves you money, time, and sleep. A bad one can do the opposite — under-market your rental, mishandle your security deposits, let your property deteriorate, and charge you for the privilege. Before you sign a management agreement, make sure you've avoided the most common mistakes we see landlords make.

Mistake 1 — Choosing on price alone

Management fees typically run 8–10% of collected rent in the Denver metro. A company quoting materially below that is often making it up in hidden fees — marketing fees, leasing fees, renewal fees, maintenance markups, or inflated vendor invoices. Ask for the complete fee schedule in writing before signing.

Mistake 2 — Not asking about the vendor network

Maintenance is where a PM either saves you money or quietly costs you money. Ask how the vendor relationships work: are vendors employees, sub-contractors, or a true third-party network? Are there markups on work orders? Can you approve repairs above a threshold? A PM with a habit of routing work to in-house or related-party vendors at above-market rates will erode your returns over time.

Mistake 3 — Ignoring their leasing process

The fastest way to lose money on a rental is to leave it vacant. Ask how they market a listing, how quickly they typically turn a unit, what their average days-on-market looks like, and how they screen applicants. A PM that treats leasing as an afterthought will cost you more in vacancy than they could ever save you in fees.

Mistake 4 — Not reading the management agreement

The management agreement controls your entire relationship with the PM. Read every line. Pay specific attention to the cancellation terms, the full fee schedule, the maintenance approval thresholds, and how security deposits are held and released. If you aren't allowed to cancel easily or without penalty, walk away.

Mistake 5 — Accepting weak reporting

You should receive a clean monthly owner statement, with rent collected, expenses itemized, vendor invoices attached, and an easy way to see year-to-date performance. If a prospective PM cannot show you a sample statement during the interview, that tells you something about how they run their operation.

The questions to ask in every interview

• How many properties do you manage, and what's your current average vacancy rate?
• Can I see your full fee schedule — including leasing, renewal, maintenance, and marketing fees?
• Can you show me a sample monthly owner statement?
• What does your tenant screening process look like, step by step?
• How do you handle evictions, and what does an eviction typically cost the owner?
• What are the cancellation terms in your management agreement?

Bergan & Company has been managing rentals across the Denver metro since 1961. If you're interviewing property managers, we'd welcome the conversation — and we're happy to walk through our fees, process, and vendor network up front, no commitment.