If you think that all that property managers do is collect rentals, take a look or two at your estate, and call the handyman once in a while, in reality, this is not the case. Property managers handle numerous tasks, leaving more spare time for the client (usually the landlord). Although the term “property manager” is somewhat known, there are numerous misconceptions about what tasks he indulges in. So, if you are thinking of hiring one and aren’t sure what a property manager actually does, read the following text for further information.
The Definition of the Job
Usually, there are several tasks that property managers work with, including dealing directly with tenants (even screening tenants), collecting rents, depositing rents, controlling (and sometimes dealing with) possible repairs and maintenance issues, renting unoccupied units, frequently talking with tenants and resolving their problems, etc. So, in short, property managers are specialized individuals who ensure that the supervised rental(s) are handled in the desired way (directions given by the owner) in any given matter, including financial and any other given instruction.
Dealing with Tenants
One of the main tasks property managers are hired for is dealing with tenants in numerous ways we mentioned earlier, including:
Setting and Collecting Rent
Setting rent in agreement with the landlord is among the most basic responsibilities of the hired property manager. When setting the rent, it is advised to be done in a competitive matter to attract future tenants. There are a couple of ways to set competitive rents; however, one of the most common is by casting a universal survey of equivalent properties ( this practice is recommended at least once a year to be sure you keep your tenants satisfied with the rental price).
Collecting rents is another fundamental task property managers deal with monthly; they usually set a collection date, ensuring that every monthly expense is paid on time. Also, they deal with various delays and enforce strict penalties if some of the tenants are late with the rent.
Finding and managing tenants is another essential responsibility of the hired tenant. This task includes finding possible tenants, screening them, managing daily issues, complaints, and even maintenance issues, handing eviction notes, and agreed move-outs in a possible professional manner. Screening is crucial, especially from the landlord’s perspective, to ensure that future tenants use the unit with respect and care. Therefore, it’s vital to hire a professional property manager who will appropriately handle all the mentioned tasks.
Managing the Property
Besides dealing with tenants, the hired property manager needs to take care of the actual property in numerous ways, including keeping the property in the initial state (safe and highly habitable), emergency repairs, unit maintenance, etc. If a tenant reports an emergency issue, the property manager needs to handle this task as fast as possible. In some cases, the property manager can hire a handyman for this type of issue. In truly emergency cases, they tackle the problem themselves. Also, when there are construction works, the hired property manager needs to inspect the place to ensure the job is done correctly and in a timely manner.
In some cases, property managers deal with budget management of the estate they are taking care of while keeping track of all the essential records. It’s important for the manager to operate with the set budget. However, in cases of danger or emergency, property managers can use the budget to order specific services without any concern about the set limit.
It’s vital that the property manager you plan on hiring is educated on accurate bookkeeping practices when it comes to taxes, revenue, income, and investing chances and purposes. So, the accounting record should include revenue, all income, expenses, a list of all done inspections, all the signed leases, complaints, records and costs of repairs, insurance, and maintenance costs, a description of collected rents, etc.
Hiring a Professional Property Manager
Like in every business branch, there is a wide range of available Professional Property Managing Services out there. However, some do not represent certified companies. If you want to make sure you are hiring truly professional service, explore all the available options before you make the final decision.
Suitable parameters for choosing the right Property Manager include:
- Customer reviews are great proof of the firm’s overall impression and work ethic.
- Try to get recommendations from colleagues and other landlords.
- Make sure to interview all the condominium management companies before you decide.
- Check out the market thoroughly and only go for professional service.
Reasons for Hiring a Property Manager
Since hiring a property manager can be quite costly, some might get trapped in a dilemma on whether or not to do it. If you are unsure whether or not hiring a property manager is a good idea, check out the following list of reasons to do so:
- More rentals: If you own more than one rental unit, it can be hard to take care of all the tasks frequently, resulting in more expenses and lower income.
- Distance– if you live far away from the rental estate, it can be pricey and difficult to get to the place, especially if you own several units. In this case, hiring a property manager is almost necessary.
- Time-individuals and busy entrepreneurs simply don’t have the time to deal with rental estates. Hiring a property manager will save up time and energy to deal with more critical issues.
- Avoidance of payroll– If you don’t want to hire resident managers and become an employer, meaning that you need to handle various legal obligations and requirements, including the payroll, consider hiring a professional property manager instead.
- Budget– Consider hiring a professional property manager if you can simply afford it. In this case, you’re simply saving up a bunch of time you can put to far better use. Especially if you don’t consider it a significant expense.