You might have heard about property management and didn’t think much about it since the term seems self-explanatory. Property management means managing property — easy, right? But have you ever wondered what goes into the job? Property managers take on multiple responsibilities, depending on the kind of property and its size. Keep reading to get the full rundown on property management, and how the pros can help you manage your valuable real estate.
What is property management?
Property management is when a third party takes on the responsibility of managing a homeowner or property investor’s residence and its occupants. Property managers are hired by property owners to maintain the daily operations of their real estate assets, which includes overseeing property upkeep and repairs, tenant associations, rent collection, and more.
Property management covers all aspects of rental homes. If a property is vacant, it is the property manager’s responsibility to find a responsible tenant as quickly as possible. Property management isn’t just concerned about keeping homes neat and tidy — property managers want to ensure that owners get the most out of their investments.
What does a property manager do?
Property managers are trained professionals who specialize in making sure that a rental home is maintained according to specific instructions given by the owner. Whether it’s maintaining immaculate landscaping or ensuring that rental fees are collected on time, property managers are experts in all aspects of property management.
Property managers need to have sufficient knowledge of the local real estate industry since they will be responsible for renting out the property at a competitive rate. Usually, property managers work in teams to ensure the smooth management of leases, tenants, budgets, safety standards, as well as compliance with state and national laws. Some states even require property managers to be licensed, real estate brokers, or realtors.
What are the types of property managers?
Commercial Property Managers
They specialize in properties used for commercial purposes. Commercial property managers are well-versed in managing large buildings that are rented out by multiple businesses.
Multi-Family Property Managers
Multi-family property managers oversee the daily operations of apartment complexes and condominiums. These property managers have excellent customer service and can deal with the problems that may arise among neighbors.
Single-Family Home Property Managers
Homeowners who want their homes rented out for additional income seek the expertise of single-family property managers. Some investors purchase homes in areas with a high demand for rental homes and hire property managers to ensure that all aspects of their investment are handled, from screening tenants to collecting rent.
Luxury Property Managers
Luxury properties need five-star treatment. Luxury property managers focus on keeping the property impeccable all year long for homeowners who might arrive at any moment. They exceed expectations by catering to the homeowner’s every request, such as ensuring fresh flowers at the entryway.
What does a property manager do?
Property management firms deal with screening prospective tenants. They advertise the property and source tenants who would like to rent the space. This involves creating listings, staging the property, and more. When a tenant applies to rent the property, it is the property manager’s job to see if they meet certain qualifications. Good property managers conduct a thorough background check, reviewing records such as credit scores, employment status, and criminal history (if any). It’s the property manager’s responsibility to ensure that only the tenants who can pay rent get to live at the property.
Regular Property Maintenance
Property managers are responsible for making sure that the property is safe and habitable all throughout the year. This includes regular maintenance and repairs, which includes performing routine checks on appliances, plumbing, and electrical systems. Property managers conduct regular maintenance before, during, and after a leasing period. This is done to ensure that the property looks its best even when no one is looking. If tenants leave their garbage out on the sidewalk, it’s the property manager’s job to make sure it doesn’t happen again.
When tenants report necessary repairs and renovations, property managers need to hire a service to do the work. Property managers usually have a vast network of reputable contractors, carpenters, electricians, technicians, and more.
Rent collection is never an easy task. It’s probably the most stressful task that homeowners have to deal with. Thankfully, property managers are tasked to handle rent collection, whether through the physical collection of rent or online payments. The property manager must ensure that payments are made on time. They are trained to de-escalate situations and to handle everything professionally at all times. When tenants fail to pay their lease, property management firms may hire a law firm to help evaluate the terms of the lease that were violated.
Unlike the movies, eviction takes more than just kicking someone out of the property. There are legal complexities and tons of paperwork involved. Usually, a property manager will hire an attorney to ensure that the entire eviction process complies with state and national laws. In rare cases, the property manager may request assistance from law enforcement to remove the tenant from the rental property.
Similarly, when tenants move out, property managers need to schedule the move-out while also sourcing new tenants. Good property managers will ensure that rental properties don’t stay vacant on the market for too long.
Accounting and Finance
Bookkeeping is the least exciting part of property management, but it’s the most rewarding. Property managers either have a background in accounting or work with a team of accountants. Accounting is essential for keeping the cash flowing and for managing your expenses. Since rental properties are a passive investment, it’s best to have someone who can determine whether or not you need to make adjustments to your budget to get the highest ROI. It is also the property manager’s job to transfer the income to your bank account and to provide you with timely and detailed financial reports.
Hiring a property manager – especially reputable ones like Luxury Property Care – is a smart move if you want to make more money with less stress. Property management companies can help maximize your real estate asset, turning in into an income-generating investment. While it may seem like property management is an expense, in the long run, it’s actually an investment as it helps maintain (and grow) your property’s value.
Property management is a complicated responsibility — property managers are there to handle it all so that you don’t have to.