Whether you’re an investor, a renter, or simply interested in real estate, you’ve probably heard about property managers. A PM is an individual or company that is hired by a property owner to oversee the day-to-day responsibilities of their rental. But what exactly does that entail? What do property managers do?The tasks of a property manager go much beyond what you may anticipate. Property managers frequently do much more than merely collect rent. In this article, we’ll look at seven tasks typically handled by property managers. By the end, you should have a good idea of what to expect if you choose to hire one.
Simplify Out-of-State Investing
Real estate management benefits from a local presence to handle operations. When you hire a property manager, you can invest in a market that fits your budget and investment goals. It doesn’t matter if it’s 30 or 3,000 miles from where you live. You don’t need to be an expert on home ownership or the location of your investment. For example, a property owner from Texas may have properties in Virginia that they want managed. Property managers in that area will be familiar with the local laws and regulations for managing a property in that specific market. They can also handle maintenance and other operational details that are quite complicated to handle remotely.
Market Your Property
Each day your unit sits empty, you are losing money. A property manager can minimize this potential loss by actively trying to renew an existing lease or marketing the property for lease immediately after the current tenant provides notice. A well-maintained property with a fair market rent rate is more likely to attract qualified renters quickly and efficiently. A property manager will handle all required repairs to make sure the unit is ready to be rented. When it is ready to be shown, they will market the property with photos and list it on major rental listing sites. A property manager will also schedule showings with prospective tenants.
Screen Potential Residents
Not only do property managers market your property, they also screen potential tenants to make sure they will be a good fit for your property. An exhaustive screening process helps to minimize your chances of losing money. Your property manager will make sure everything done during this phase is compliant with fair housing and discrimination laws. Screening of applicants typically includes a series of background checks including:
- Credit score
- Employment verification/current income
- Rental history/landlord references
- Criminal history
- Terrorist watchlist and sex offender registry checks
- Pet information
After the applicant is screened, you may even be consulted on the approval. The property manager will collect the security deposit after the applicant is approved.
Collect Rent
Your property management team will then collect rent from your tenants. They will make sure renters pay their rent on time and ensure each monthly payment clears. Today, most property management companies even offer online payment options, for maximum crowd appeal. Property managers also handle any delinquent payments and collect late fees, when appropriate. They will also help you navigate collection and eviction processes if necessary. Working with a PM guarantees that these responsibilities, which could be challenging for investors to handle from a distance or even just down the street, are taken care of effectively, saving owners both time and money.
Manage Resident Relationships
A rental manager works directly with the tenants, replacing the typical landlord-tenant relationship that some homeowners have traditionally had with renters. Instead of going to you with their concerns, renters will communicate with the property manager. In addition to rent collection, property managers typically handle the following:
- Enforcing lease terms: Before the tenant moves in, your property manager will go over important lease terms. When breaches occur, the manager will notify the tenant and enforce consequences. The leasing agreement will detail how the management handles violations and repeat offenders. A violation may result in a fine, the termination of the contract, or eviction.
- Maintenance requests: Your resident will likely have several maintenance requests during the course of their lease. Your property management company will handle any routine maintenance requests and after-hours emergencies. A lack of landlord assistance for maintenance issues in rental properties is the main reason for tenant turnover. That’s why it is important to have a local presence to address any concerns quickly.
- Repairs: The property manager will coordinate any repairs your property requires. Management may become aware of repairs that are needed through routine inspections or by a tenant's notification. Common repairs include HVAC or plumbing repairs, broken railings, replacement of light bulbs in common areas, etc.
- Property inspections: A property manager will perform routine inspections of the rental unit. Regular inspections help to find any maintenance problems that need fixing before they become costly repairs. Inspections also verify that the tenant is taking care of the unit. Typical inspections may include move-in/move-out inspections, seasonal inspections, or drive-by inspections.
- Complaints: Dealing with tenant complaints can be one of the most time- and energy-consuming aspects of property management. A dissatisfied renter may be raising issues with property upkeep or other neighborhood-related problems involving other tenants or neighbors. Tenants may be asked to send written notifications to property management via email or an online tenant portal.
Ensure Compliance
Property managers are not only skilled at resident relations, they are also well-versed on local rental rules and regulations. As such, they will help you keep your rental properties compliant with current rental property standards. By taking care of these regulations on your behalf, a property manager will help you avoid any legal difficulties.For example, some states have specifications on the amount a tenant can be charged as a security deposit. A property owner that is unfamiliar with the area may unintentionally charge a deposit above the legal limit and may be breaking the law solely because they were unaware. On the other hand, a property manager local to the area will be better able to ensure that renters are charged the correct amount.
Provide Professional Advice and Guidance
Property managers bring expert advice to assist you with a wide range of issues, including how much to charge for your rental property. Hiring a property manager gives you access to a professional who can guide you in making wise choices. This can save you time, money, and improve your chances of making a successful investment.
In Closing
A property manager will assist in reducing the burden that comes with managing rental properties. While the manager takes care of the property's day-to-day operations, you have more time to concentrate on expanding your business. Before deciding to hire a property manager, take into account your financial and personal needs as well as the requirements of your property. Property management services are not free and may not be a good fit for every real estate investor. For more information about typical property management fees, check out this article. Are you ready to work with a property manager? We’ve made it our mission at Evernest to provide hassle-free property management and deliver consistent returns on investment to our property owners. Check out our pricing plans to get started.
Ready to Learn More?
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