Property Management. Everything You Need to Know
Managing a rental can feel like a lot, especially if you’re new to it. But here’s the good news: with the right systems in place and a clear understanding of the legal side, being a landlord doesn’t have to be stressful. In this article, we’ll walk you through what you need to know to protect yourself from headaches, lawsuits, and evictions—so you can manage your property with confidence.
We recently sat down with Mike Goldstein, owner of HubKey, a local brokerage and property management company, to talk about what every landlord should know—from licenses and documents to daily operations.
If you already own a rental—or you’re thinking about becoming a landlord—you’ve probably asked yourself: Should I hire a property management company? Let’s explore the answer together.
NOTE: This article is for informational purposes only and does not constitute financial or legal advice!
What Is Property Management?
Property management refers to the daily operations and oversight of residential, commercial, or industrial real estate by a third-party company. Property managers act as the go-between for landlords and tenants. Their job is to keep your property running smoothly, your tenants happy, and your business profitable. That includes:
Maintenance & Repairs
Coordinate ongoing maintenance and emergency repairs
Perform light cleaning and seasonal upkeep
Schedule regular inspections
Tenant Management
Screen prospective tenants (and pets)
Handle leasing, renewals, and notices of entry
Respond to tenant questions and complaints
Manage evictions when necessary
Financial & Administrative Tasks
Market vacant units
Show properties to potential renters
Collect and deposit rent
Communicate with the property owner
Maintain financial records
In Pennsylvania, property managers usually need a real estate license if they’re handling rent, leasing, or property agreements for someone else. However, If you're managing your own rental property, you do not need a real estate license.
Whether you own a few units across town or live in a different state entirely, a property management company can take the stress off your plate and help you maximize your rental income.
When Does Paying for Property Management Make Sense?
In Philadelphia and most places, any type of rental—whether it's a single-family home, a condo, or a multi-unit building—can be managed by a licensed property management company. Even if you’re just renting out one unit, you’re still eligible.
So when does it actually make sense to pay for help?
1. You own more than one rental.
The more properties you have, the harder it becomes to manage everything on your own. A property manager can help streamline the process and keep things running smoothly.
2. You live far from your rental.
Emergencies happen, and if you can’t get there quickly, you need someone who can. A local property manager can step in fast and take care of issues right away.
3. You don’t have time.
If you’re busy with work, family, or just want more free time, hiring a manager takes the stress off your plate—especially when tenants call with problems at night or while you’re on vacation.
4. You’re not familiar with landlord-tenant laws.
A good property manager knows the rules and helps protect you from legal trouble, bad tenants, and costly mistakes.
5. Your property sits vacant too long.
Property managers know how to market rentals and attract qualified tenants quickly, helping you earn more and worry less.
How much do property managers charge in Philadelphia?
Property management is a paid service, and pricing can vary based on your location, property type, and scope of work. Here’s a breakdown of the most common property management fees:
🔹 Monthly Management Fee. Covers ongoing services such as rent collection, tenant communication, and property oversight.
Typical cost: 6%–10% of monthly rent
🔹 Additional Fees (May Vary by Company):
Vacancy Fee: Charged if the property remains vacant for an extended time
Onboarding Fee: One-time setup fee when you begin service
Maintenance Markups: Some companies charge a percentage on top of repair costs
Lease Renewal Fee: Flat fee or percentage of monthly rent to handle renewals
Eviction Fee: Charged if legal proceedings or tenant removal is needed
Make sure you fully understand the fee structure before signing a contract.
How do I manage my rental property on my own?
Thinking about managing your rental property yourself? You’re not alone! Many homeowners in Philly decide to skip the property management company and take control on their own. It can save you money and give you more control, but it also means more responsibility. Here are the 5 most important things you should know before you get started:
1. Obtain Necessary Licenses and Registrations
Before renting out your property, you must secure specific licenses:
Business Income & Receipts Tax (BIRT) Account Number: Register with the Department of Revenue to obtain a BIRT number, which is necessary for all business activities in the city, including rental operations. City of Philadelphia
Commercial Activity License (CAL): Required for anyone engaging in business within Philadelphia. If you live in one of the rental units (in a property with four or fewer units), you may qualify for an Owner-Occupied Housing License instead. City of Philadelphia
Rental License: Issued by the Department of Licenses and Inspections (L&I), this license is mandatory for renting out any dwelling, rooming, or sleeping units. Each building requires its own license. American Legal Publishing+3City of Philadelphia+3Del Val Property+3
2. Ensure Property Compliance and Safety
Certificate of Rental Suitability: Before a tenant moves in, provide them with this certificate, which confirms that the property is fit and habitable. It's valid for 60 days and must be renewed with each new tenancy or lease renewal.
Lead Paint Certification: If your property was built before 1978, you must have it inspected and certified as lead-safe or lead-free by a certified professional. This certification is required to obtain or renew a rental license and must be provided to tenants. City of Philadelphia+1Philly Rental License+1
Smoke Detectors and Fire Safety: Ensure that all fire protection and smoke detection systems are present and in proper working order, as required by city regulations. American Legal Publishing+1City of Philadelphia+1
3. Provide Required Documents to Tenants
At the start of each tenancy, supply tenants with the following:
Certificate of Rental Suitability: As mentioned above.
Partners for Good Housing Brochure: This document outlines the responsibilities of landlords and tenants and provides information on maintaining a safe and healthy home.
Lead Paint Disclosure: If applicable, provide the EPA's "Protect Your Family from Lead in Your Home" pamphlet and the lead certification.
Bed Bug Brochure and Certification: Inform tenants about bed bug prevention and provide any required certifications.
4. Understand Tenant Screening and Lease Agreements
When selecting tenants:
Income Verification: Ensure that tenants have a gross monthly income of at least three times the monthly rent. Acceptable documentation includes recent pay stubs, tax returns, or offer letters for new employment.
Credit and Background Checks: While Philadelphia has guidelines to prevent discrimination, you can still conduct credit and background checks, provided you apply them consistently to all applicants.
Lease Agreements: Use a written lease that clearly outlines the terms, including rent amount, duration, responsibilities, and policies on issues like pets and smoking.
5. Maintain the Property and Address Issues Promptly
Regular Maintenance: Keep the property in good repair, addressing any issues promptly to ensure it remains habitable and safe.
Tenant Communication: Maintain open lines of communication with tenants to address concerns and schedule necessary inspections or repairs.
Record Keeping: Document all communications, repairs, and inspections to protect yourself in case of disputes.
Conclusion:
Based on this article, you should now have a better understanding of whether it makes sense to manage your own property or hire a property management company. One thing we can’t stress enough: you must follow the rules. Skipping key steps—like getting a rental license—can lead to serious legal trouble. For example, without a rental license, you can’t legally collect rent. That means your tenants could stop paying, and there’s nothing you can do about it.
If you have questions about property management, feel free to reach out to HubSpot. And if you're looking for rental opportunities in Philly, let’s connect!
