A Guide to Property Management: What’s Into It?
Whether you’re interested in real estate as an investor, renter, or just curious, you’ve definitely heard of property managers. What what does a property manager perform, though? Property managers typically do much more than merely collecting rent, despite what one may assume.
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Let’s examine some of the responsibilities held by property managers and what to expect should you decide to work with one.
What Is a Property Manager?
A property manager is the individual or business that a property owner employs to oversee and manage the daily operations of their real estate investment. A property manager’s responsibilities also include finding renters for vacant units, setting and collecting rent, attending to maintenance concerns, and maybe developing the budget for the building.
Property managers are usually hired by real estate investors to take care of properties they don’t live near or don’t want to personally touch. A property manager might be an individual or an entire management company, depending on the owner’s requirements.
How Do Property Managers Operate?
The main reason to hire a property manager or management company is to protect your real estate investment and passive revenue stream. Investors hire property managers to oversee their rental properties for a variety of reasons, such as desiring a more hands-off approach or having a local expert to handle a property.
But what exactly does a manager or property management company do to look after the buildings that fall within their purview? Let’s talk about some common responsibilities held by property managers.
1. Adheres to Landlord-Tenant laws and regulations
Keeping up with the many landlord-tenant laws and regulations may be challenging for an investor, especially if they own multiple properties spread across multiple states or regions. By handling these regulations on your behalf, a property manager can protect you from any legal issues in the road. Property managers are usually more suited to handle local rules and regulations because they are usually subject matter experts in their areas.
For example, the maximum amount of security deposit that may be recouped from a tenant varies depending on the state. A property manager who is knowledgeable with the area may be better equipped to guarantee that tenants are paid the correct amount if a property owner requests a deposit that exceeds what is permitted and might result in legal issues since they were not aware of the local regulations.
2. Gives Owners Who Are Out of Town A Local Presence
Property managers serves as a point of contact and the local expert on-site for distant owners. The intricacies of managing a property in a foreign land, like California or New York, would be too much for a property owner who has lived their entire life in Texas. A property manager may handle those matters on their behalf in addition to other issues that arise, like maintenance and other operational problems that would be difficult to handle remotely.
3. Attends to Maintenance Requests
A property manager or property management company is also in charge of handling requests for repair and other in-person care. A landlord who ignores maintenance issues for an extended period of time may cause aggravation to their tenants; for this reason, having a manager on site to address tenant concerns swiftly is beneficial.
Maintenance issues, which might vary from broken appliances to unwanted animals or pests in a tenant’s home, must be handled by someone who is on-site. A landlord who doesn’t respond to their issues may lose their tenants when their lease ends, therefore it’s important to keep up a strong local presence in order to satisfy their needs.
4. Showcases and Leases Vacant Spaces
Working with a property manager can also help owners prevent the potential financial loss that could result from leaving an empty unit unattended for an extended period of time. Rather of trying to reach out to potential tenants remotely, you can rely on a property manager to bring in new tenants and even renew existing contracts.
Furthermore, it may not be possible to show off houses if the owner is out of state; tenants may be reluctant or uneasy settling into a home without first seeing it. Owners who engage with a property manager may have someone on hand to handle problems and demonstrate to potential tenants the full potential of the spaces.
5. Collects and Holds Rental
Property managers are also responsible for collecting and depositing rent on behalf of the properties they oversee. Some property managers and property management companies may use websites or payment programs to collect rent in order to help get money to the property owner more rapidly.
Additionally, property managers may handle past-due payments, collections, and evictions. Owners can save time and money by hiring a property manager to undertake these tasks, which can be difficult for investors to manage from a distance.