Property management is often a core function of a real estate agency, with property managers playing a key role in both looking after the properties and landlords, and managing tenants.
Property managers are often in the position of working closely with both tenants and landlords to find solutions and keep everyone happy. This isn't always an easy thing to do, but it all starts with understanding your responsibilities and managing both the workload and expectations of everyone involved.
Property Management
After all, property owners hire property managers because they are experts in their field. Landlords delegate responsibilities to save time and because property managers can do the job better.
However, ultimately, a property manager will be responsible for a variety of tasks.
Verify that the property is available to rent
On the surface, any property can be rented, but there are many different laws that vary from state to state that property managers need to understand, whether their property complies with these laws and regulations, and if not, what is needed to bring it up to standard.
Many of the regulations are about safety and making sure tenants aren't put at risk – complying with laws regarding fire alarms, pool fencing and fuse boxes are just a few examples of what a property manager needs to know. You also need to know all the laws regarding rental agreements and tenant rights in an ever-changing field.
Real Estate Marketing
One of the key roles of a property manager is to ensure that the property is marketed effectively to get the best possible outcome for the owner – after all, it is the property owner who hires the property manager (or agent) and the job of the property manager is to get the highest rents and the best tenants.
This involves arranging for a photographer to take photos of the property, knowing what the fair market rent is, and listing the property on various property listing portals.
You will also need to show potential tenants around the property and create a list of suitable candidates.
Property managers will need to vet candidates to ensure they have a good track record as renters, have the income or funds to rent out the property, and will generally be a good tenant for the property owner. This may involve running a range of checks on tenants and contacting previous property managers to see if they have been good tenants.
Finally, property managers are responsible for preparing rental documents, getting signatures, and handling all the little details.
Real Estate Maintenance
Managing a rental property takes time and effort, and many owners outsource this task to property managers, who then have to effectively manage all the issues that arise with the property over time.
The most basic thing is to make sure the property is in good condition and that all the appliances like the dishwasher and air conditioner are in working order, as well as making sure there are no issues with the plumbing, electrical systems, etc.
If a problem does arise, the property manager is responsible for finding the right contractor to resolve the issue, obtaining quotes, and then consulting with the homeowner on how they would like to proceed.
Tenants will regularly contact property managers to ask them to address maintenance issues, so property managers need to be on top of communication with tenants and ensure work is done as quickly as possible.
inspection
Another important element of property management is making sure that your tenants properly maintain the property.
Typically, management companies will inspect the property on a regular basis and ask tenants to make sure they are maintaining the property properly.
The property manager will visit the homeowner regularly and demonstrate the condition of the property with reports and photos taken during the inspection.
Another important job of a property manager is to carry out move-in and move-out inspections. Tenants should return the property in the same condition as when they moved in, and inspection reports can ensure this has been done properly.
Receive rent
Property owners ultimately rent out their properties to earn rental income, and the property manager's role is to ensure that rent is paid regularly and to chase up tenants if it isn't paid.
If a tenant falls behind on their rent payments, property managers will need to communicate with them to find a solution that allows them to start making payments again, or they may be forced to evict the tenant and pursue legal proceedings. The same can happen if a tenant does not maintain the property to the standards set out in the lease.
Over time, property managers should also ensure that rents are in line with market rates. They should review leases regularly to stay on top of market changes.
Tenant Change
One of the biggest pain points for landlords is tenants moving out on a regular basis. Property managers need to ensure this process goes as smoothly as possible. If a tenant breaks their lease, they'll need to find and screen a new tenant in accordance with the lease.
At the end of the tenancy, the property manager must ensure that the tenant leaves the property in the same condition as when they moved in. If there are problems, the property manager may have to deduct costs from the departing tenant's security deposit.
Find a new property to manage
A good property manager may also be required to help generate new properties to manage, which may involve liaising with the sales team and preparing presentations to potential landlords.
This requires property managers to have a thorough understanding of current market conditions, including finding comparable rental properties and devising a proper marketing plan to help owners find quality tenants.
Win-win
A good property manager is a valuable asset to any property owner. They make the owner’s life easier. They also need to have excellent communication skills, understand the challenges that may arise in the tenants’ lives, and be ready to work with them.
Property management companies charge a fee, but a good property management company will recoup their costs by ensuring rent is paid on time and at market rate, tenants are of much higher quality and the property is maintained to a higher standard.
A good property manager benefits everyone involved.