Property managers are appointed to handle operations, maintenance, and management of property rentals on behalf of the owner. Their tasks include, among many others, marketing properties and finding tenants, ensuring rental prices are competitive while covering taxes and operating expenses, collecting rent, and complying with rental laws.
What is a property manager?
Property managers are individuals specialized in ensuring that the property operates according to the guidelines provided by the owner, whether the goals are financial or rely on providing attractive living conditions, or both.
These guidelines can take various forms – corporate property owners may issue mission statements and visions for their properties, while individual property owners may provide verbal directives about their objectives for the property.
The manager ensures that responsible tenants occupy the property, payments are collected in a timely manner, budgets are followed, and the property is properly maintained.
Note: Property owners with multiple properties may need professional help in property management. This is where property managers come in.
How does property management work?
Property managers take charge of everything that happens daily in the rented property. They must have practical knowledge of the real estate industry in which the rental property operates, such as industrial or residential properties.
The property manager then works to ensure that the owner’s goals are met by managing rental activities, tenants, maintenance, budgets, and records of the rented properties. They should also have in-depth knowledge of state and national laws regarding the legal ways to screen tenants, handle security deposits, terminate leases, carry out evictions, and comply with property safety standards.
For these reasons, some states require property managers to be licensed real estate brokers. If this is the case, the owner will need to hire a real estate broker to ensure legal property management.
Some other states allow managers to be licensed in property management instead of being real estate brokers, while some states do not require any licensing at all. In addition to licensing, property managers come with different specializations and expertise.
Setting Rent
Setting rent is a primary responsibility of any property owner. Therefore, it is one of the most common tasks passed on by the owner to the property manager. The property manager determines competitive rental prices to attract tenants to the property. Generally, this is done by surveying similar properties in the area – this should also be done at least annually to remain attractive to tenants.
Collecting Rent
The property manager also establishes a system for collecting rent from tenants. To ensure optimal cash flow, they set a date for rent collection to ensure coverage of monthly property expenses and strictly enforce late fee policies.
Tenant Screening
Screening and managing tenants is another essential responsibility of the property manager. The property manager may be involved in finding and screening potential tenants, managing daily complaints and maintenance issues, and dealing with tenant exits and eviction processes.
Note: Property managers are typically the people tenants deal with. If you have multiple properties and tenants, you may need a property management company.
Property Maintenance
The property manager must keep the property in a safe and habitable condition. Property managers are responsible for the actual management of the property, including routine maintenance and emergency repair procedures.
The work performed by contractors and other technicians should be inspected to ensure it meets standards and that they complete their work in a timely manner.
Budget Management
Property managers may be responsible for managing the budget for the building and maintaining all important records.
The manager must operate within the established budget for the building. In certain emergency situations where residents (tenants) or the physical structure (investment property) are at risk, they may use their judgment to request repairs or similar actions without regard to the budget.
Note:
Property managers should have knowledge of accepted accounting practices to ensure accurate record-keeping for income, tax, and investment purposes.
Accurate records related to the property are essential for accounting purposes. Records should include all revenues and expenses; a list of inspections, signed lease agreements, maintenance requests, complaints, repair records, repair costs, maintenance costs, rent collection history, and insurance costs.
Types of Property Managers
Commercial property managers specialize in properties used for business purposes. These managers may have good experience with industrial buildings or office spaces.
Property managers for multi-family dwellings are accustomed to managing facilities such as apartment complexes. These experts need good customer service skills and the ability to defuse situations, in addition to performing the typical duties of a property manager.
Property managers for single-family homes work on behalf of real estate investors who retain their investments and rent them out for additional income. These investors typically buy homes in areas with a high turnover rate, such as military communities, where there is a trend of not purchasing homes.
They hire property managers to ensure that all aspects of the property are handled and to maintain value while the property is in use.
Takeaway
Property managers handle the daily operations of rental properties. Their responsibilities include:
- Identifying and processing rent
- Marketing and screening tenants
- Handling tenant issues
- Scheduling and tracking maintenance
- Managing financial matters and records
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Source: https://www.thebalancemoney.com/what-is-a-property-manager-2124842
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