You probably know that property managers and property management companies exist, but do you know exactly what they do? The property managers are third parties who are hired to handle a wide range of daily operations related to real estate investments.
There are many types of properties that can be administered by property managers such as family homes, entire apartment complexes, commercial and industrial properties.
A property manager’s job description is usually determined by the terms of the management contract and by their fee. Here are some key things that a property manager will handle:
Setting the initial level of the rent, collecting it from tenants, and adjusting it according to the fluctuations of the real estate market are all tasks that real estate managers will handle.
- Setting the rent - property managers have a lot of experience and understanding of a rental market and know how to set a fair rent that will attract quality tenants.
- Collecting the rent - they make sure that you have a regular cash flow by setting a fixed date to collect rent each month from the tenants. Additionally, property managers can also enforce late rent fees when the tenants don’t pay the rent on time.
- Adjusting the rent - property managers will increase or decrease the rent in accordance with the local real estate market. They also stay up to date with local laws and regulations and act accordingly.
Some of the most important responsibilities a property manager has are finding and managing tenants, solving their complaints, and handling evictions.
- Finding the tenants - a property manager will be responsible for marketing your property and filling the vacancies. This is an extremely fast process for a specialist because they will know where to advertise the property and what features to emphasise in ads. Having considerable experience in the industry helps a manager know exactly what people are looking for in a rental property and can help you do certain upgrades or changes that will attract more tenants.
- Screening the tenants - Property management specialists will filter through applications of prospective tenants and choose the ones that are most appropriate for your property. Standardised screening processes such as running criminal background checks and credit checks, make finding good tenants quite easy for them. Throughout their career, professional property managers have screened thousands of tenants, so they know who to choose to avoid issues like late rent or short tenancy.
- Handling the leases - settling different details like the length of the lease, the value of the security deposit, as well as making sure that the owner is protected from lawsuits, are all things that will be handled by the real estate manager.
- Dealing with complaints/emergencies - property managers will deal with all maintenance requests, noise complaints, and other situations that might require immediate attention.
- Managing move outs - there are many aspects that require a property manager’s attention when tenants move out such as checking for damages, inspecting the unit, deciding what happens with bond money, cleaning the property, making necessary repairs, and finally, finding new tenants.
- Handling evictions - in some cases, tenants might stop paying rent and be in breach of the terms of a lease. Therefore, the property manager must find the right solution, and if necessary, evict the tenants.
3. Maintenance and repairs
A property manager will also physically manage the real estate property which means that they will have to handle the emergency repairs and any regular maintenance.
- Maintenance - for a property to be in top condition, the manager or a licenced professional hired by them will handle preventive property maintenance. This process consists of checking for leaks, fixing the landscape, and removing the trash from the property. If done on a regular basis, property maintenance will keep the property in good shape, ensure that the current tenants are happy, and attract good tenants in the future.
- Repairs - when something needs to be fixed on the property, the manager will check it and then hire a professional contractor. In general, property management companies have large networks of reliable electricians, plumbers, gardeners, cleaners, and other contractors. Additionally, they can also use an online property management platform, like Bricks + Agent, to find local and reliable tradespeople instantly.
4. Local laws and regulations
A good property manager will have extensive knowledge of all the national, state, and local laws regarding the following:
- Screening tenants
- Handling security deposits, rent, and late rent fees
- Terminating leases
- Evicting tenants
- Complying with all property safety standards
- Employees and contractors - a property manager is responsible for ensuring that all employees and contractors working on a property are doing their jobs. Additionally, the manager can also negotiate their payments, fire them, and hire replacements.
- Vacant properties - in some cases, property managers can be hired to manage vacant properties and to ensure that they are not vandalised or damaged. For these properties, they will hire repairmen and contractors when necessary and do routine maintenance checks.
6. The records and the budget
The real estate manager is responsible for keeping records of all the relevant details and for managing the budget for the property.
- Records - A good real estate manager will keep pertinent records regarding the property management such as expenses, incomes, regular inspections, paperwork, complaints, rent collection, etc.
- Budget - A property will usually have a fixed budget that the property manager can use for emergency situations, repairs, contractors, upgrades, taxes, etc.
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