Friday evening. Your tenant calls about sparks and burning smell from an electrical socket. You contact your property management company, the service you pay 10% monthly to handle exactly these situations. They call back: "How would you like to proceed?"

You authorize repairs up to a reasonable amount. Thirty minutes later, another call: "None of our contractors are available. Can you organize someone?" Now you're scrambling to find electricians while your tenant panics and you wonder what exactly you're paying for. If you're doing the work anyway, why pay the fee?

What "Fully Managed" Should Actually Mean

The term "fully managed" gets thrown around by letting agents, but definitions vary wildly. Understanding what you should actually receive for your management fee is the first step to evaluating whether you're getting value.

Core Services in True Full Management

Emergency response capability - Including out-of-hours access to contractors
Established contractor relationships - Pre-vetted plumbers, electricians, general maintenance
Authority to act within agreed limits - Not asking permission for every minor decision
Proactive maintenance oversight - Scheduling inspections, renewals, safety certificates
Tenant communication management - First point of contact for issues and requests
Legal compliance - Ensuring all regulations are met, documentation current
Rent collection and arrears management - Chasing late payments, managing payment plans
Regular property inspections - Typically every 3-6 months with detailed reports

If your management company isn't providing most of these services, or only provides them in theory but not in practice, you're not getting full management. You're getting partial service at full management prices.

The Emergency Response Test: Where Agents Often Fail

Emergency situations reveal whether your agent actually adds value or just relays messages. A good management company should handle emergencies decisively, not punt every decision back to you.

How Good Agents Handle Emergencies

A well-run management service approaches emergencies like this:

Tenant reports issue - Agent assesses severity and categorizes as emergency or routine
Agent contacts appropriate contractor - From their established network, including out-of-hours contacts
Contractor dispatched within pre-agreed limits - Agent uses existing authorization to approve work
Landlord receives update - After the issue is resolved or in progress, not for permission at every step
Documentation and billing - Proper records, invoices, and deduction from next rent payment

Notice the landlord is informed but not required to manage the situation. That's the service you're paying for.

How Poor Agents Handle Emergencies

By contrast, poor management companies operate like this:

Tenant reports issue - Agent calls landlord immediately
"How would you like to proceed?" - Dumping the decision entirely on you
You authorize work - Within some budget limit
Agent tries their one contractor - Who may be unavailable, especially out of hours
Agent gives up - "Can you organize someone yourself?"

At this point, you're doing the management while paying someone else to tell you there's a problem. That's not service, it's an expensive notification system.

Setting Up Effective Pre-Authorization Protocols

One reason agents constantly seek approval is that landlords haven't established clear authorization limits. Setting these upfront is crucial for effective management.

Creating Tiered Authorization Levels

Work with your agent to establish spending tiers that allow them to act quickly:

Under $200 - Proceed immediately for any necessary repairs or maintenance
$200-$700 - Proceed for emergencies, get single quote for non-emergencies
$700-$2,000 - Get two quotes, recommend best option, await your approval
Over $2,000 - Full consultation, multiple quotes, detailed discussion before proceeding

These amounts should be adjusted based on your property value and your financial comfort level. The key is giving agents authority to handle routine and emergency issues without constant back-and-forth.

Emergency Override Authorization

For genuine emergencies, provide higher limits with clear definitions:

Safety hazards - Electrical faults, gas leaks, structural danger
Water damage prevention - Burst pipes, severe leaks, flooding
Security issues - Broken locks, damaged doors/windows after break-in
Heating failure in winter - No heat when temperatures are low

For these situations, authorize agents to spend whatever is necessary to resolve the immediate danger, then discuss permanent solutions afterward. Trying to negotiate prices during an emergency is penny-wise and pound-foolish.

Reality Check: What Emergency Work Actually Costs

Part of effective management is having realistic expectations about emergency repair costs. Unrealistic budget limits guarantee your agent will fail to resolve issues.

Understanding Out-of-Hours Premiums

Emergency callouts outside normal business hours cost significantly more than scheduled work:

Normal hours callout - $80-$120 callout fee, $50-$80/hour labor
Evening/weekend callout - $130-$200 callout fee, $80-$120/hour labor
Late night/holiday emergency - $200-$330 callout fee, $100-$160/hour labor

A Friday evening electrical emergency will likely cost $250-$450 even for a simple fix. That's not contractors taking advantage, it's the cost of getting skilled labor to drop everything and respond immediately.

If you set authorization limits below realistic emergency costs, you're essentially guaranteeing your agent will have to call you for permission, defeating the purpose of having management.

When Agents Actually Add Value

Despite frustrations, good property management does provide real value in specific situations. Understanding when agents are worth the cost helps you make informed decisions.

Distance and Geography

If your property is hours away or in a different city, local management becomes essential. You can't realistically handle emergencies, inspections, or contractor oversight from a distance.

A good local agent knows the area, has established contractor relationships, and can respond quickly when needed. This geographical advantage justifies their fee in ways remote landlords benefit from directly.

Portfolio Scale

Managing one or two properties yourself is feasible. Managing ten or twenty becomes a full-time job. At scale, professional management frees your time and provides systems that individual landlords can't efficiently replicate.

Good management companies also negotiate better rates with contractors due to volume, potentially offsetting their fees through cost savings on repairs and maintenance.

Legal and Regulatory Compliance

Landlord regulations change frequently and vary by location. Good agents stay current with legal requirements, ensure certificates are renewed, handle deposit protection properly, and manage compliance documentation.

This expertise protects you from expensive mistakes and potential legal issues. The cost of one compliance failure often exceeds years of management fees.

Buffer and Professional Distance

Having an agent as a buffer between you and tenants maintains professional boundaries and reduces emotional involvement. This is particularly valuable during conflicts, arrears situations, or eviction proceedings.

Agents can enforce rules and pursue arrears without the personal relationship complications that arise when landlords deal directly with tenants they know.

Warning Signs Your Agent Isn't Worth the Fee

Certain patterns indicate you're paying for service you're not receiving. Recognizing these red flags helps you decide when to switch agents or move to self-management.

The Message Relay Pattern

If your agent primarily just forwards messages between you and tenants without adding analysis, recommendations, or solutions, they're not managing. They're operating an expensive answering service.

Good agents provide context, evaluate urgency, research solutions, and make recommendations. "The tenant says the heating isn't working, what should I do?" is lazy service. "The heating failed, I've contacted our HVAC contractor who can attend tomorrow morning for $240, or we can get an emergency callout tonight for $390" is actual management.

No Contractor Network

Agents should have established relationships with multiple reliable contractors in all major trades. If they're Googling for electricians every time something breaks, they're not providing professional management.

Ask your agent directly: "Who are your go-to contractors for emergencies in each trade? Do you have out-of-hours contacts?" Their answer reveals whether they're prepared or winging it.

Constant Permission Requests

If your agent asks permission for everything, even minor routine maintenance, either you haven't set proper authorization limits or they're unwilling to take any responsibility.

Good agents use judgment within agreed parameters. Asking you about every $70 repair or routine service defeats the purpose of management.

Poor Communication or Slow Response

Management companies that take days to respond to tenant issues or your questions aren't managing effectively. Slow response times lead to minor problems becoming major ones and frustrated tenants.

Surprise Issues at Inspection

If inspections regularly reveal problems that should have been caught earlier, your agent isn't conducting thorough inspections or following up on previous issues.

Good management is proactive. Problems should be identified early and resolved before they escalate. Recurring surprises indicate poor oversight.

Self-Management: When It Makes Sense

Many landlords eventually conclude they can provide better service themselves than their agents deliver. For some situations, that's absolutely true.

Ideal Conditions for Self-Management

Local property - You can reach it within an hour or two if needed
One or two properties - Small enough scale to handle alongside other commitments
Reliable tenants - Low-maintenance tenants who communicate well and pay on time
Your own contractor network - Established relationships with plumbers, electricians, etc.
Time and availability - Able to handle calls and issues during working hours
Legal knowledge - Understanding of landlord-tenant law and compliance requirements
Organizational skills - Can track certificates, payments, documentation systematically

If these conditions apply, self-management can save you 10-12% monthly while giving you direct control and better relationships with tenants.

Tools and Services for Self-Managing Landlords

Modern technology makes self-management much more feasible than it was a decade ago:

Online rent collection - Automated payment tracking and reminders
Digital document management - Cloud storage for leases, certificates, correspondence
Inspection apps - Photo documentation with timestamps and notes
Landlord insurance with legal cover - Protection and advice when needed
Landlord associations - Legal helplines, template documents, compliance guidance
Online tenant screening - Background checks and reference verification services

These tools provide many of the systems professional management offers, at a fraction of the cost.

Hybrid Approach: Tenant-Find Only

Many landlords use agents for tenant finding and referencing, then manage the tenancy themselves. This provides professional marketing and screening without ongoing management fees.

Tenant-find services typically cost one month's rent as a one-time fee. For stable, long-term tenancies, this approach offers the best value for many landlords.

Evaluating Your Current Management Service

If you're unsure whether your current agent provides value, ask yourself these questions:

The Value Assessment

Does your agent handle routine issues without involving you?
Do they have reliable contractors available, including for emergencies?
Are inspections thorough and proactive?
Do they catch and resolve small problems before they become big ones?
Is communication prompt and professional?
Do they stay current with legal requirements and ensure compliance?
Do they manage arrears professionally without constant involvement from you?
Has tenant turnover been low (suggesting good tenant relations)?
Are monthly statements clear and accurate?
Do they provide strategic advice about your property?

If you can honestly answer yes to most of these questions, your agent is probably worth the fee. If you're answering no to more than half, you're not getting value for money.

Questions to Ask Your Agent

Have a direct conversation with your management company about service expectations:

What is your out-of-hours emergency response process?
Who are your regular contractors and what are their response times?
What spending authority do you currently have, and can we increase it for emergencies?
How do you handle situations where your contractors aren't available?
What is your average response time for tenant maintenance requests?
How often do you conduct inspections and what do they include?
What systems do you use to track compliance deadlines?

Good agents will answer these questions confidently with specific processes and examples. Poor agents will be vague or defensive.

Making the Switch: Changing Agents or Going Solo

If you've determined your current agent isn't providing value, you have options. Neither is necessarily easy, but both can improve your situation significantly.

Switching to a Better Agent

When interviewing potential new agents, focus on specifics:

Ask for references from current landlord clients
Request detailed information about their contractor network
Discuss their emergency response protocols in detail
Ask about their staff turnover (high turnover = poor service consistency)
Clarify exactly what's included in their management fee
Understand their inspection process and reporting
Ask about their average tenant retention rates

Don't make decisions based on price alone. An agent charging 12% who provides excellent service is better value than one charging 8% who does nothing.

Transitioning to Self-Management

Before making the switch, prepare properly:

Join a landlord association for legal support and resources
Set up systems for rent collection, document storage, and maintenance tracking
Build your contractor network before you need them
Understand your legal obligations thoroughly
Consider landlord insurance with legal cover
Create templates for common communications
Establish your own inspection schedule

The transition takes effort upfront but can save thousands annually while giving you better control and relationships with tenants.

Final Thought

Property management fees aren't inherently wasteful, and agents aren't universally useless. But the quality variation in the industry is enormous, and many landlords do pay significant fees for minimal actual service.

The question isn't whether agents are obsolete. It's whether your specific agent provides value that justifies their cost for your specific situation. An excellent agent managing a distant property portfolio is worth every penny. A poor agent who just relays messages about your local rental is an expensive liability.

Evaluate honestly what you're actually receiving. Set clear expectations and authorization protocols. If your agent can't or won't meet reasonable service standards, either find one who will or take control yourself.

You're running a business. Every expense should provide clear value. Management fees are no exception. Demand service that actually manages, or stop paying for management you're doing yourself.

Are You Paying 10% for a Message Service? What Fully Managed Should Actually Mean