If you have an investment property, instead of dealing with its daily operations and worrying about renting it out, you can hand over all those tasks to a property manager. A property manager or property management company can take care of most aspects of your investment property for a fee.
What is a property manager?
A property manager is the owner’s partner in maximizing the return on investment in the property by effectively performing these four functions. A property management company acts in the owner’s best interest to maintain the property, keep it rented to tenants, collect rents, plan improvements, and maintain records.
Responsibilities of a property manager
In property management, the property manager or property management company has four main areas of responsibility:
Marketing and finance
Property management includes an understanding of operating expenses and budgeting. From this information, appropriate rental rates are determined, balanced with the current market and what the rents can support. This requires strong knowledge of the area and competing rental properties.
Tenant and occupancy
The property manager’s interactions with tenants start with considering rental applications and screening tenants. It is important to understand the tenants’ needs for this function. Getting tenants to move in is just the beginning.
Facility management
Property management also includes managing the buildings and outdoor areas. Landscaping, electrical, plumbing, roofing, walls, appliances, and more are all part of the physical property. The property manager must maintain relationships with contractors and repair companies, plan capital expenditures, and monitor the quality of all repairs and maintenance.
Administrative management and risk management
This is the record-keeping part of the property management function. Federal, state, and local governments have some authority over property management activities. Certain reporting requirements must be met for all of them. Accurate records must be maintained for accounting and tax purposes.
How to become a property manager?
You may be able to obtain a job as a property manager with a high school diploma, but some employers may prefer candidates with a college degree. There are also certifications like the Certified Property Manager (CPM) credential that can help improve your chances of earning a better salary as a property manager.
Frequently Asked Questions (FAQs)
What are property managers’ fees?
Property managers can charge fees in various ways, including flat fees, but the most common arrangement is a percentage of the gross monthly rent. On average, property managers may charge 7%-12% of the gross monthly rent as management fees. Owners may also have to pay expenses in addition to the fees.
What do property managers look for during inspections?
Property managers are expected to conduct regular inspections of both the interior and exterior of the building. For exterior inspections, they will look at landscaping or painting. Interior inspections include common areas of the property and the interiors of the units when tenants are ready to move in.
Was this information helpful?
Thank you for your feedback!
Sources:
– Bureau of Labor Statistics. “What Property, Real Estate, and Community Association Managers Do.”
– National Apartment Association. “Financial Metrics Guide.”
– Institute of Real Estate Management. “Types of Property Managers and Their Responsibilities.”
– Bureau of Labor Statistics. “How to Become a Property, Real Estate, or Community Association Manager?”
– National Association of Realtors. “Certified Property Manager (CPM).”
– New Mexico Regulation and Licensing Department. “Real Estate Commission: Frequently Asked Questions.”
Source: https://www.thebalancemoney.com/real-estate-property-management-areas-of-responsibility-2866512
Leave a Reply