If you’re an investor in Texas, especially in the Dallas-Fort Worth area, understanding the value of professional property management is crucial. Whether you’re buying your first rental property or scaling your portfolio, the right property manager can be the difference between passive income and persistent headaches.
In this guide, we break down everything you need to know about property management—from cost and service expectations to red flags and ROI—based on a real conversation with our trusted partner Kent Lindloff of Real Property Management Legend.
What Does a Property Manager Actually Do?
A good property manager does more than collect rent. They serve as the operational backbone of your rental investment. Here are the core responsibilities:
Tenant placement: Advertising, showings, background checks, and lease signing.
Ongoing management: Rent collection, maintenance, communication, and code compliance.
Emergency handling: 24/7 service for late-night issues so you don’t have to take those 2 AM calls.
Tenant retention: Creating a positive tenant experience that reduces turnover and costs.
Market expertise: Advising you on rental rates, local trends, and when it’s time to sell or improve a property.
Kent’s team, for example, averages two and a half years for tenant stays—well above the national average of 18 months. That extra 6–12 months per lease cycle can save thousands in repair and vacancy costs.
How Much Does Property Management Cost?
Property management costs typically come in two parts: the leasing fee and the monthly management fee.
Leasing fee: This covers marketing, screening, and securing a new tenant. It usually ranges from 50% to 100% of one month’s rent. Kent’s company lands around 75% on average. Mark always recommends paying the full 100% to incentivize wider exposure in the realtor network.
Monthly fee: Ongoing property management usually costs 8% of collected rent. Some companies charge up to 10%, especially on lower-rent properties. Flat-rate offers also exist, but often hide costs through inflated maintenance fees or restricted service.
Example: On a property rented at $2,000/month, your leasing fee could be $2,000 (at 100%), and your monthly fee would be $160 (at 8%).
Is It Worth It? Absolutely. Here’s Why.
Managing properties yourself may seem like a way to save money, but hidden costs add up fast:
- Time lost during maintenance issues, even on weekends or vacations
- Costly mistakes in screening tenants or handling violations
- Emergency repairs without trusted contractors
- Emotional stress from conflict resolution and eviction processes
Mark’s own experience included ruined weekends, emergency plumbing calls from boats on Lake Travis, and $22,000 in damage from a tenant he had to evict. Looking back, he says he would’ve gladly paid the monthly fee to avoid those situations.
Why Property Management Is More Than Rent Collection
The best property managers go far beyond rent collection. They act as consultants and advocates for your investment:
Preventative maintenance: They spot issues before they become expensive repairs. Kent’s team performs biannual walk-throughs, takes photos, and looks for signs like foundation cracks or water damage.
Weekly vacant property checks: They prevent squatters, water damage, and vandalism while a property is unoccupied.
Trusted vendor networks: They use vetted contractors, not overpriced in-house teams that inflate costs.
Real-time alerts: Kent once caught a slab leak early thanks to a spike in a tenant’s water bill, saving a client thousands.
Lease consultation: They’ll recommend repairs or upgrades based on local market trends. If you’re better off selling and doing a 1031 exchange, they’ll tell you and even refer you to a trusted real estate partner.
The Hidden ROI of Tenant Retention
Every time a tenant moves out, you pay for:
- Turnover costs like cleaning, repainting, and new carpet
- Leasing fees to find a new renter
- Potential vacancy months
By extending the average lease term, a great property manager significantly boosts your long-term ROI.
If a tenant stays an extra year, that alone can recoup all your management fees and then some.
Property Management Red Flags to Watch Out For
Not all property management companies are created equal. Here are signs that you might be dealing with the wrong one:
- Low upfront fees with high hidden costs
- In-house maintenance teams that prioritize profit over value
- No regular property inspections or tenant retention focus
- Poor communication or slow response times
Make sure to ask direct questions during your interviews.
- How often do they inspect properties?
- What’s their average tenant stay?
- How do they handle maintenance calls?
What Makes a Property Manager in Texas Truly Great
Kent summed it up best: “We actually do what’s best for the owners—even if that means having hard conversations.”
That might mean recommending a sale instead of continued rental. Or suggesting a short-term repair vs. a long-term upgrade based on your finances. Great property managers aren’t there to upsell—they’re there to help you win.
Here’s what to look for in a property manager:
Experience in your market: Know the foundation risks, rent trends, and tenant expectations in your area.
A consultative approach: Someone who provides options and lets you choose based on your goals.
Respect for tenants: Happy tenants mean longer stays, less turnover, and more stable income.
Transparency: Upfront about pricing, inspections, and potential issues.
Advice for New Property Investors in Texas
If you’re planning to buy a rental property, speak with a property manager before you buy—not after. They’ll help you:
- Avoid properties with high maintenance risk or low rent appeal
- Understand true ROI beyond sales price and mortgage
- Evaluate neighborhoods based on tenant demand and rental history
Mark and Kent both agree: don’t rely solely on a realtor for rental analysis. Realtors specialize in buying and selling—not always in what rents well or holds long-term value. Property managers see the real day-to-day of tenant life.
Your Investment Deserves the Right Team
When you’re putting hundreds of thousands of dollars into a real estate investment, a few hundred bucks a month for expert guidance is money well spent.
The right property manager can save you thousands, preserve your peace of mind, and protect your long-term financial goals.
If you’re investing in a rental property—especially in Dallas, North Texas, or anywhere in Texas—we can connect you with trusted property managers like Kent. And if you’re not sure where to start, we’re here to help you build the right team.
Have questions about investing or rental property financing? Reach out today and let’s talk through your options.
When you think mortgage, think Mark.
Mark Pfeiffer
Regional Sales Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com
Mark Pfeiffer is a Mortgage Loan Originator with CMG Home Loans and a veteran of the mortgage industry since 2003. Mark is responsible for ensuring all loans originated by the Mortgage Mark Team offer competitive terms and close on-time.