A complete guide to Maryland property management basics

What is Maryland property management?

Maryland property management is the professional oversight of residential, commercial, and mixed-use properties across the state, covering daily operations and long-term planning. It typically includes managing maintenance needs, communicating with residents, facilitating board decisions, and helping properties and associations stay financially healthy and legally compliant.

Property management is particularly valuable in Maryland due to the diversity of community types, from community associations in Towson and luxury high-rises in Baltimore to active adult communities in Annapolis and condominiums in Bethesda. Each requires tailored expertise to operate smoothly, protect property values, and enhance resident experiences.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What does a property management company do?

A property management company handles the operational, financial, and administrative aspects of residential properties on behalf of boards or property owners. This can include everything from coordinating landscaping services to preparing annual budgets and conducting inspections.

Typical responsibilities include:

• Handling routine and emergency maintenance requests
   
• Preparing financial reports
   
• Collecting assessments or dues and managing delinquent accounts
   
• Coordinating board meetings and annual elections
   
• Enforcing community rules and architectural guidelines
   
• Managing vendor contracts and supervising on-site personnel
   
• Communicating with residents through newsletters, websites, and customer care centers

Property management companies act as the day-to-day stewards of a community, allowing board members to focus on strategic oversight rather than daily tasks.
 

Benefits of hiring a property management company in Maryland

Hiring a Maryland property management company can offer significant advantages for both board members and homeowners. Some of the most valuable benefits may include:

1. Regular cash flow

   A property management company can help maintain consistent income by managing rent collection or HOA dues and tracking payments in real time. Automated systems, lockbox services, and multiple payment options can help reduce late payments and delinquencies. This stability is especially valuable for communities that rely on predictable cash flow to cover operating expenses and reserve funding. Professional managers can also assist in implementing strategies to improve collection rates when needed.
    

   Property value preservation

   Well-maintained homes and common areas can contribute directly to long-term property value. A Maryland property management company supports upkeep by coordinating regular maintenance, enforcing aesthetic standards, and addressing repairs promptly. A proactive approach helps prevent small issues from becoming costly problems. Maintaining curb appeal also plays a key role in resident satisfaction and resale value.
    

2. Local expertise

   Professional property managers can bring deep knowledge of state and local regulations, housing laws, and regional trends. This local insight allows them to support boards in complying with evolving legal standards and county-specific codes. Familiarity with local vendors, service pricing, and market expectations can lead to better decisions and more effective operations.
    

3. Time savings for board members

   Running a community can be a full-time job, especially for volunteer boards. Property management companies take over time-consuming responsibilities like vendor coordination, resident communication, document preparation, and emergency response. This allows board members to focus on strategic planning rather than day-to-day management. Delegating tasks to professionals can improve both efficiency and the bottom line.
    

4. Cost savings through vendor relationships

   Maryland property management firms often leverage existing partnerships with vendors to secure better pricing for services. This can include waste removal, landscaping, cable contracts, insurance premiums, and more. These savings are then passed along to communities, helping lower annual expenses without reducing service quality. Additionally, management companies often provide contract review and bidding support.
    

5. Legal and compliance support

   Staying compliant with Maryland’s HOA and condo laws requires vigilance and expertise. Property management companies can support boards by maintaining proper records, following meeting procedures, and enforcing rules fairly. While they do not provide legal advice, experienced managers can flag potential concerns and coordinate with the association’s attorney as needed. This helps communities avoid unintentional missteps that could result in liability.

What is the average property management fee in Maryland?

Typically, Maryland property management companies charge a monthly fee that falls between 7% and 10% of the collected monthly assessments for HOA or condo communities. For rental properties, management fees are usually calculated as a percentage of the monthly rent, commonly between 8% and 12%. These fees can vary based on the number of units and scope of services.

In some cases, management fees may be structured as a flat rate rather than a percentage. For large-scale communities or high-rises with on-site staff, additional staffing costs may be billed separately. Some companies also charge extra for value-added services like special project coordination, lifestyle programming, or resale processing.

While cost is a factor, it shouldn't come at the expense of service. Boards should look for a management partner that delivers real value through expertise, support, and long-term savings. Choosing the lowest fee can sometimes lead to bigger issues down the road if it results in missed details, inefficiencies, or added stress for the board.
 

Does a property management company need to be licensed in Maryland?

Maryland does not currently require property management companies to hold a state-issued license specifically for association management. However, licensing may still be required if a property manager or company handles real estate brokerage activities like leasing or selling units.
 

Why FirstService Residential is Maryland’s #1 property management company

For more than 25 years, our dedicated team of local professionals has been the trusted partner of associations across Maryland by delivering high-quality service backed by deep local expertise:

• Tailored management: Whether managing a traditional HOA or a high-rise building, FirstService Residential pairs each property with a local, knowledgeable team that understands its unique needs.
   
• Specialized lifestyle services: For lifestyle communities and active adult communities, we offer specialized wellness and amenity programs, staffed by experienced lifestyle directors and supported by a full Lifestyle Division.
   
• Advanced technology: Our proprietary FirstService Residential Connect™ software and mobile app can help streamline operations, allowing real-time work order tracking, violation management, and resident communication.
   
• Comprehensive financial services: Through our affiliate FirstService Financial, communities gain access to industry-specific accounting support, banking programs with competitive rates, and CPA-supervised oversight.
   
• Round-the-clock support: Our 24/7 Customer Care team provides answers to residents’ questions and supports the management team in responding to emergencies efficiently.
   
• Cost savings: By leveraging the size of our portfolio, we can negotiate better pricing for services, which helps reduce costs without sacrificing quality.

If your board is looking for a trusted partner to simplify Maryland property management, FirstService Residential is here to help. With unmatched experience, advanced tools, and a service-first approach, we’re proud to be the management company that thousands of Maryland communities trust, from Baltimore to Annapolis. Contact us to learn more about how we can support your association.