Yes, you can deduct property management fees on Schedule E as a rental expense if you hire a property management company to handle your rental property. Property management fees are considered ordinary and necessary expenses for managing the rental property, and they can be deducted to reduce your taxable rental income. It is important to maintain proper records and receipts of the property management fees paid, and ensure that they are accurately reported on Schedule E. However, there may be specific rules and limitations for deducting property management fees, so it is advisable to consult with a tax professional or review the IRS guidelines to ensure proper compliance and accurate reporting of rental expenses on Schedule E.