Best Property Management Companies in Chicago

Frequently Asked Questions

• What is property management?

  Property management is the business of controlling and overseeing real estate, including residential and commercial rental properties. These professionals handle general maintenance and day-to-day operations on behalf of the property owner. They’re responsible for marketing properties, finding and screening tenants, collecting rent, and preparing units between leases. They may also handle repairs, evictions, and any problems that arise.

• What does a property manager do?

  Professional property managers perform critical tasks throughout the leasing life cycle, from preparing a rental property, through tenant move-ins and move-outs. They can also provide referrals for legal advice, home repairs, and services that aren’t covered by the management agreement. Here are some of their key responsibilities:

  • Marketing and listing vacant units
  • Processing applications and screening tenants
  • Conducting quarterly and annual inspections
  • Orchestrating move-in procedures
  • Coordinating maintenance and repairs
  • Collecting rent and applying penalties
  • Conducting move-out inspections and returning deposits
  • Handling evictions and posting quit notices
  • Complying with fair housing regulations
  • Compiling monthly expense reports
  • Preparing annual tax documents

• How much do property management companies charge?

  Property management fees can vary substantially depending on the size of the property, number of units, and scope of service. Property owners can expect to pay one month of rent to fill vacant properties and 10% of the gross cash flow to manage the property. Investors should also account for monthly maintenance, contributions to a reserve repair fund, and early termination fees if they decide to cancel the property management contract. Evictions and other non-routine services typically cost extra.

• How do I manage a rental property from out of state?

  Managing a property isn’t easy, and the job is even more difficult for out-of-state landlords. Thorough tenant screenings are the best way to prevent many common problems. Landlords should also maintain strong relationships with neighbors who can alert them if anything goes wrong. Investors who prefer a more hands-on approach should consider hiring a property manager to represent their interests.

• Does a property manager need a real estate license?

  Yes, in most states, property managers must have a real estate license to advertise rentals, show properties, sign lease agreements, collect rent, and perform other fiduciary activities. A community association manager license or similar certification may also be required for professionals who want to work for an HOA or apartment complex, although this credential is optional in most states.

• How do I find a good property management company?

  Property managers differ significantly in their approach and level of expertise. It’s important for owners to screen potential candidates to ensure that they're choosing the most qualified professional. Here are a few questions to ask during the interview:

  • How many units do you manage?
  • How big is your staff?
  • Do you have a maintenance crew?
  • How long does it take to fill vacant units?
  • What happens if my tenant doesn’t pay on time?
  • Have you ever filed an eviction?
  • What type of communication can clients expect from you?

• Do property management companies find tenants for rental properties?

  Yes, finding tenants and filling vacancies are key responsibilities for property managers. These professionals are responsible for advertising the property, and they handle all inquiries, applications, and showings. To find the most qualified tenants, managers perform background and credit checks, verify references, and confirm the applicant’s employment information, which can prevent problems and extra costs down the road.