What does a good property manager do?
That’s one of the many questions you are bound to ask yourself if you are considering hiring one.
It’ll depend on your needs but generally you want someone who can take care of your rental.
Regardless of what specialties you are looking for, there’s always someone to get that job done.
For example, there are property managers that specialize in one specific service, for example, rent collection. Others offer more than one service; including rent collection, evictions, maintenance, and repairs.
There are even companies that offer comprehensive services spanning from advertisements to tenant screening to legal compliance, and so on.
Impressive, isn’t it?
So, before hiring a property management company, you first have to know what your needs are. From there, you can comfortably say “I need a manager who can do this and that for me.”
Knowing your needs equals finding your ideal property manager.
However, to get a clear understanding of your options, you need to first know what property managers do.
The short answer is they care for your rental property and all the responsibilities that come with that.
Generally, property managers come with a unique set of abilities, experience, methods, and tools.
This makes them a valuable asset to investors who:
- Are new to the industry – they help new investors to maximize their profits.
- Are busy and short of time – these companies can manage every aspect of a property.
- Have too many properties to deal with – they simplify an investor’s workload.
There are many benefits to hiring a property manager.
Here is a list of responsibilities that property managers often handle.
Remember, not all managers offer the same services. Some offer less while others offer more. So, it’s up to you to find a management company that offers you exactly what you are looking for.
1. Setting the Rent Price
Unlike most real estate investors, property management companies are well-equipped and knowledgeable.
This means that they know how to come up with rent prices that will not only be affordable for most renters but also profitable to the rental property owner.
They use real data from the property market, surrounding area averages and industry trends to set a fair rent price.
Property managers also know which features would demand a higher rent price in a certain area and which ones wouldn’t.
2.Advertising Your Property
A good property manager knows that vacancies are always bad for business.
And that’s why they should offer marketing strategies for your property whenever there’s a vacancy. This, in turn, ensures that your rentals don’t have any long-term vacancies.
Moreover, it’s their duty to present an appealing and attractive image for your property when they advertise.
Since most managers have ample experience, they’ll know where, how, and what channels to use to find ideal tenants.
3. Vetting Prospective Tenants
Do you know how to find reliable, long-term, punctual, and responsible tenants?
If not, don’t stress about it. Property managers excel at this.
A management company with enough experience and manpower knows how to find a good tenant out of many applicants.
Also, they should be able to do thorough background checks and screening to weed bad tenants from the list of prospects.
4. Managing Tenants
We can all agree that managing tenants can be quite stressful.
Generally, tenant-related issues never seem to end. And that’s why this responsibility can be quite overwhelming, especially for landlords with busy schedules.
Fortunately, management companies have the manpower available to handle any situation. This means that they can easily tend to these matters more quickly than a property owner can.
Moreover, since management companies are the ones who bring in the tenants, it’s only fair that they handle tenant issues.
5. Collecting Rent, Managing Finances, and Handling Evictions
One of the main responsibilities of a property manager is to collect rent.
Good companies offer a convenient, secure, and easy rent payment systems. In most cases, these systems are online and route the funds straight to the landlord’s bank account.
This not only makes it easy for the landlord to collect their money but also allays any fears of skimming by the manager.
Also, the company should provide regular and accurate reports on your property’s operations and growth.
With regards to evictions, if a tenant fails to pay their rent or becomes a nuisance to other tenants, it’s the duty of the company to evict them. And all evictions will be be done legally and with your consent, of course.
6. Carrying Out Maintenance and Repairs
Yes, it’s also the property manager’s duty to ensure the property is well-maintained and attractive to prospective tenants.
Whenever there are repairs, cleaning, landscaping, or any other maintenance needs, a good property manager will ensure it’s done promptly.
That’s why having a property manager – especially if you live out of town – can be a great way to keep your property in good shape, while keeping tenants happy.
7. Handling Legal Compliance
Every rental property must be run in accordance with the law. Otherwise, it may be at risk of getting shut down.
Luckily, there are property managers who also handle a property’s legal matters professionally.
From legally evicting a tenant to filing taxes, they can take care of all the legal formalities for you.
8. Other Important Duties of a Property Management Company
Aside from the responsibilities above, property managers can also handle:
- Budgeting
- Rent adjustments
- Lease formulations
- Move-outs and inspections
- Supervision of on-site employees
- Bookkeeping and so on
All you have to remember is that not all companies offer the same number of services.
So, before deciding on a hire, make sure that you’ll get everything you need from the company first.
And before that, you may want to find out if you need a property manager.