Hiring a property manager means handing someone the keys to what may be your largest investment, along with your tenant relationships, your rent money, and a good share of your legal risk. The right company makes ownership close to hands-off. The wrong one can cost you more in vacancy, turnover, and repairs than you would ever save on a lower fee.
This guide walks rental owners in the Denver area through how to choose a property management company. It covers what a manager actually does, the qualifications that matter in Colorado, the questions that show how a company really operates, how to read a fee schedule and a management agreement, and the warning signs that should end the conversation. It finishes with a checklist you can use on every company you interview.
Why the Right Property Manager Matters
A property manager acts as your agent in a regulated business. Day to day, that means a long list of responsibilities that all affect your income:
- Pricing the rent and marketing the home
- Screening applicants within fair housing and Colorado law
- Preparing leases and handling renewals
- Collecting rent and holding funds in trust
- Coordinating maintenance and emergency repairs
- Inspecting the property and documenting its condition
- Serving notices and managing evictions
- Reporting income and expenses, monthly and at year end
What a poor fit costs
Most of the cost of a bad manager never shows up on a fee schedule. It shows up as a home that sits empty for an extra month, a tenant who was approved too quickly, a lease that doesn't hold up, a deposit that is returned late, or a repair bill that nobody questioned. Turnover alone can wipe out a year of savings from a cheaper fee: every move-out brings lost rent, cleaning, repairs, and the cost of finding the next resident.
The legal side has also become harder to manage on your own. Colorado passed nine new rental laws in 2023 and thirteen more in 2024, including rules that limit when a lease can be non-renewed (HB24-1098) and new habitability repair standards (SB24-094). A good manager tracks these changes and builds them into everyday procedures. You can follow the changes on our Colorado rental legislation page.
Do you need a property manager at all?
Some owners self-manage successfully. It usually works when you have the time to respond around the clock, a working knowledge of landlord-tenant and fair housing law, and the temperament to treat the property as a business. If any of those is missing, professional management is worth a serious look. Our articles on whether to hire a property manager and whether to self-manage go deeper on that decision.
What to Look for in a Property Management Company
Marketing websites tend to sound alike. These eight areas are where companies actually differ, and each one comes with something specific you can ask to see.
Licensing and insurance
Property management is a licensed activity in Colorado. Look up the company and your future manager with the Colorado Division of Real Estate's license lookup, and check for disciplinary actions. Ask about errors and omissions coverage with a property management endorsement, general liability, and workers' compensation.
Ask to see: license numbers and current certificates of insurance.
Local market experience
Rents, demand, and seasonality vary a lot between downtown Denver, the southern suburbs, and Northern Colorado. A manager who leases homes like yours in your area will price more accurately and know what renters there expect.
Ask to see: recent leases for comparable homes and their days on market.
A real track record
Look for years in business as a property management company, not "combined experience" across a team. Ask how many homes the company manages and how many each manager is responsible for. Too many doors per manager is often the root cause of slow responses.
Ask to see: the number of doors per manager and owner references with similar properties.
Tenant screening
Strong screening uses written criteria applied the same way to every applicant. That protects you on fair housing and keeps decisions consistent. In Colorado, screening also has to follow rules on application fees and portable tenant screening reports.
Ask to see: the company's written rental criteria.
Maintenance and repairs
Find out who answers emergency calls at night, how vendors are vetted and insured, and the dollar amount at which you are asked to approve a repair. Ask whether vendor invoices are passed through at cost or include a markup or coordination fee.
Ask to see: the written approval threshold and how repairs are billed.
Rent collection and accounting
Your rent and the tenant's security deposit should be held in a trust account, separate from the company's own money. Know when each month you will be paid, how, and what your statement will show.
Ask to see: a sample owner statement and the monthly payout date.
Communication and technology
You should know exactly who you will talk to and how quickly they will reply. An online owner portal with statements, invoices, and documents saves a lot of back-and-forth, especially for owners who live out of state.
Ask to see: the response-time standard for owners and tenants, in hours.
Reputation and reviews
Read Google reviews and Better Business Bureau complaints, and look for patterns. Some tenant complaints about deposit deductions are normal for any manager. Repeated complaints from owners about communication or money are not.
Ask to see: how the company responded to its negative reviews.
Questions to Ask Before Hiring a Property Manager
Pricing and a copy of the agreement are standard requests, but neither tells you how a company operates when something goes wrong. Ask every company you interview the same questions, and note whether you get a specific answer or a sales pitch.
About the company
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How long have you managed rentals, and is property management your main business?
Why it matters: Some companies manage rentals on the side of a sales business. You want procedures that have been tested over years, not a team learning on your property.
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Who will be my day-to-day contact, and are they licensed?
Why it matters: A named, licensed manager who knows your property is very different from a general phone queue.
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How many properties does each manager handle?
Why it matters: Workload drives response time. If a company can't answer, it probably doesn't track it.
About leasing and tenants
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What are your average days on market for homes like mine?
Why it matters: Vacancy is usually an owner's largest controllable expense. Ask how they set the rent, where they advertise, and how they handle showings.
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What percentage of your tenants renew their leases?
Why it matters: Renewals mean fewer turnovers, and fewer turnovers mean less lost rent and fewer make-ready bills.
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How often do you have to file an eviction, and who handles it?
Why it matters: A low eviction rate reflects careful screening and consistent rent collection. If an eviction is needed, the company should manage the legal process, not hand it back to you.
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How do you screen applicants, and can I see your written criteria?
Why it matters: Written, consistent criteria are your best protection against both bad tenants and fair housing complaints.
About money and maintenance
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When and how do I get paid each month?
Why it matters: A clear payout date and direct deposit indicate an organized accounting process.
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At what dollar amount do you call me before a repair, and do you mark up vendor invoices?
Why it matters: This is where many surprise costs come from. Get both answers in writing.
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How often do you inspect occupied homes, and do I receive photos?
Why it matters: Regular inspections catch lease violations and small maintenance problems before they become expensive ones.
About the agreement
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How do I cancel the agreement, and what does it cost?
Why it matters: Termination terms show how confident a company is in its service. Watch for auto-renewing terms with a narrow cancellation window.
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What do you guarantee, in writing?
Why it matters: Guarantees are uncommon, so ask directly. A company that stands behind its screening or leasing should be willing to put it in the agreement.
For more on interviewing companies, see interview questions for a property management company and 6 things to check before you hire.
Understanding Property Management Fees and Services
The monthly management percentage is only one line on a fee schedule. Two companies with the same headline rate can cost very different amounts over a year, depending on what else they charge and when they charge it. Ask each company for a single written list of every fee, then compare them side by side.
| Fee | How it's usually charged | What to ask |
|---|---|---|
| Monthly management fee | A percentage of rent or a flat monthly amount | Is it charged on rent collected, or on scheduled rent even when the home is vacant or the tenant doesn't pay? |
| Leasing or placement fee | Often a portion of one month's rent, per new lease | Is it due when the lease is signed, and what happens if the tenant leaves early? |
| Lease renewal fee | A flat fee or a percentage per renewal | What work is included in a renewal, such as a rent review or an inspection? |
| Setup or onboarding fee | One-time, when you sign | Does it apply if a tenant is already in place? |
| Maintenance coordination | Included, a percentage of the invoice, or a vendor markup | Will I see the vendor's original invoice? |
| Inspections, evictions, and HOA work | Sometimes included, sometimes billed per event | Which of these services are included in the management fee? |
| Tenant-paid fees | Late fees, admin fees, or monthly program fees | Who keeps these fees: you or the company? |
| Termination fee | A flat fee or remaining fees for the lease term | Can I leave with notice and no penalty? |
Compare total cost, not the headline rate
A low percentage can be offset by renewal fees, per-inspection charges, maintenance markups, or a fee that keeps running while the home is vacant. A slightly higher rate that includes more services, and that is only charged when rent is actually collected, often costs less over a full year. The most expensive outcome is usually the hardest one to see on paper: a longer vacancy or a poorly screened tenant.
Read the management agreement before you sign
The agreement is where promises become obligations. Before you sign, find the answers to these points:
- Term and termination: how long the agreement lasts, how it renews, and how you can end it.
- Fees: whether every fee appears in one schedule or is spread through the document.
- Preparation: whether the agreement names the Colorado law firm that prepared it.
- Reserve: how much of your money stays in the trust account to cover expenses.
- Payout timing: the day each month you receive your funds.
- Maintenance trigger: the repair amount at which you're contacted first.
- Guarantees and evictions: what is guaranteed and who handles legal action.
We explain each of these in detail on our property management agreement page.
Full-service or leasing-only?
Leasing-only service finds and places a tenant, then hands the property back to you. Full-service management covers the entire cycle: leasing, rent collection, maintenance, inspections, accounting, and legal compliance. If you are comparing quotes, make sure you are comparing the same level of service.
Warning Signs to Watch For
Any one of these is a reason to slow down and ask more questions. Several together are a reason to keep looking.
- No proof of license or insurance. A legitimate company can send both the same day.
- Fees spread through the agreement. If you can't find every cost in one place, expect surprises.
- Long, auto-renewing contracts. Narrow cancellation windows and termination penalties keep owners in place without earning it.
- A rent quote well above the market. Promising top dollar to win your business often ends in a longer vacancy and a price cut.
- Vague answers. "We're very responsive" is not a response time. "We screen carefully" is not a set of criteria.
- Fees charged on uncollected rent. A company paid whether or not you are paid has less reason to collect.
- Slow or unclear payouts. Late statements and missing deposits are early signs of accounting problems.
- "Combined experience" claims. Twenty years across five people is not twenty years of operating history.
- Evictions handed back to you. Watch for agreement language requiring you to hire your own attorney.
- Repeated owner complaints. A pattern in reviews or BBB complaints matters more than any single comment.
We cover more of these in the 4 most common mistakes landlords make when hiring a property manager and why some owners can't fire their property manager.
Property Manager Evaluation Checklist
Use this list for each company you interview. If you can't tick an item, ask a follow-up question, or treat the missing answer as information in itself.
Credentials
- Company and manager licenses verified, with no disciplinary actions
- Current E&O, general liability, and workers' compensation coverage
- Years in business as a property management company
Operations
- Written rental criteria applied to every applicant
- Average days on market and renewal rate provided
- 24/7 emergency maintenance coverage
- Inspection schedule, with photos shared
- A named contact and a response-time standard
Money
- Rent and deposits held in a separate trust account
- A set payout date and a sample owner statement
- Every fee listed in one written schedule
- Repair approval threshold and vendor billing explained
Agreement and reputation
- Termination terms you are comfortable with
- Guarantees written into the agreement
- Google reviews and BBB record checked
- At least two owner references contacted
Why Consider Grace Property Management?
We wrote this guide to be useful whichever company you hire. If you are comparing property managers in the Denver area, here is how we answer the questions above.
- Experience
- Family founded in 1978. We also teach state-approved continuing education to the real estate community and provide expert witness work on behalf of real estate investors. About us
- Licensing
- All of our property managers are licensed and complete ongoing internal training.
- Agreement
- Month-to-month. You can end it with 30 days' notice and no termination fees or penalties. It is prepared by the Colorado law firm TSM PC. Read the agreement details
- Fees
- Our management fee is charged only on rent we collect. If the home is vacant or rent isn't paid, you don't pay a management fee. Our full fee schedule is published. See pricing
- Payouts
- We close the accounting cycle on the 10th of each month and pay owners by ACH direct deposit, with 24/7 access to statements in a secure owner portal. Accounting
- Maintenance
- We respond to emergencies 24/7, use pre-screened vendors, and handle repairs under $500 without needing to contact you. Maintenance
- Inspections
- An annual mid-lease property assessment, at no cost to you.
- Guarantees
- Up to $1,000 toward eviction legal fees, up to $1,000 for approved-pet damage, and a free re-lease if a tenant we place breaks the lease in the first 12 months. All guarantees
- Results
- We collect 99% of the rent due each month, and 82% of our tenants renew each year. How we measure it
We're not the right fit for every owner. We work best with owners who want a full-service, hands-off experience and who believe in keeping their homes well maintained. If that sounds like you, we'd be glad to talk.
Areas we serve
We manage rental homes across the Denver metro area and nearby communities, including Denver, Aurora, Lakewood, Arvada, Westminster, Thornton, Littleton, Centennial, Highlands Ranch, Parker, Castle Rock, Longmont, Loveland, and Greeley.
