We placed and monitored 2,137 nest boxes to determine how the size of the entrance hole and the box placement influenced nest box selection by secondary cavity-nesting birds and to derive recommendations for the use of nest boxes for management of cavity-nesting birds in forested environments. A total of 566 pairs of seven bird species used the nest boxes from 1997 to 2006, 562 of which were secondary cavity-nesters. Sympatric tits such as varied tits (Parus varius), great tits (P. major), and marsh tits (P. palustris) were common breeding birds in nest boxes, and showed clear preferences for 4.0 cm, 3.5 cm and 3.0 cm nest holes, respectively. Tree sparrows (Passer montanus) and Eurasian nuthatches (Sitta europaea) preferred 4 cm and 3.5 cm holes, respectively. We did not detect selection for the directional orientation for the entrance hole, but the birds appeared to avoid nest boxes that faced steep or gentle upward slopes and those less than 1.8 m from the ground. These results are probably related to avoidance of disturbance and predation. We suggest that diverse species can be supported by the placement of nest boxes with entrance holes of various sizes and that specific species can be targeted by selecting the hole sizes preferred by those species. To attract secondary cavity-nesters, managers should avoid placing nest boxes close to the ground and facing hills. This study also suggests that careful selection and placement of nest boxes is needed to avoid biases in research using nest boxes.