If you’re interested in learning more about the duties and responsibilities of a real estate property manager, you’ve come to the right place. Read on to learn more about this position and everything it involves. There’s a lot to cover, so let’s get started.
A property manager is an individual or company hired to watch the daily operations of a piece of real estate. They take over for owners who can’t or won’t fulfill management duties by themselves. This individual is crucial. They keep everything running within the property.
- Follows Landlord-Tenant Laws and Regulations
- Serves as a Local Representative For Out-Of-Town Owners
- Handles Maintenance Requests
- Controls Maintenance Requests
- Shows and Leases Vacant Units
- Screens Tenants And Collect Security Deposits
- Collects and Deposits Rent
- Reduces the Cost of Management
1. Follows Landlord-Tenant Laws and Regulations
First, the property manager follows the landlord-tenant laws and regulations. These can be tricky for the owner to keep in mind, especially if they are in charge of multiple properties. A property manager ensures these laws and regulations are followed at all times.
Because they operate in a local area, property managers are often better equipped to keep these laws and regulations intact than the actual investor is. These regulations vary by state, and the property manager ensures everyone operates on a level playing field. For instance, they might check to ensure a tenant is charged the correct amount.
2. Serves as a Local Representative For Out-Of-Town Owners
Another duty is to serve as a local presence for property owners who operate out of town. Someone who lives in Florida but purchases property in Texas might not know to handle this location. A property manager assists with that.
A property manager also handles tasks that an out-of-area owner cannot take on daily. For example, they can work on maintenance and complaints an owner cannot take on if they own the property remotely. A property manager is like an extra set of arms.
3. Handles Maintenance Requests
As mentioned briefly above, a property manager handles maintenance requests from tenants. If you have a landlord that takes a long time to deal with maintenance, it can cause discomfort in tenants and a reluctance to continue a lease. A property manager gets it done fast.
Some maintenance requests can be small, like a leaky sprinkler or a broken dishwasher. Others can be bigger, such as broken pipes or cracks in the ceiling. A property manager can fix the trouble themself or find a person to come in and perform maintenance. They keep tenants happy and comfortable.
4. Controls Maintenance Costs
A property manager will also control the cost of maintenance on a property. They can monitor the expenses for a property and ensure they stay within a specific budget. A property manager will note the costs and see if the cost of repairs outweighs the rent coming in.
If repairs are frequently necessary, a property manager can determine more affordable ways to make fixes. They might take on some by hand or look for a more affordable company to perform maintenance. They make maintenance easier to handle for property owners.
5. Shows And Leases Vacant Units
Another thing a property manager does is show and lease vacant units. They eliminate the risk of financial loss by ensuring any owned property is empty for the least amount of time possible. An owner can put their trust in a property manager rather than worrying about showing it and leasing it themselves.
If an owner lives far away, it can be tricky to show apartments to tenants. This act reduces the chance of them moving in. A property manager makes the space more available, which can increase the trust potential tenants have before paying.
6. Screens Tenants And Collect Security Deposits
A property manager can also help the owner by screening tenants and collecting security deposits before the move-in. They’re speeding up the move-in process by getting the necessary steps out of the way beforehand. If a person wants to move in sooner rather than later, a property manager can make it happen.
This person can also determine if a tenant is trustworthy by screening before accepting their application. As a result, they can help the owner get the best possible tenants.
7. Collects And Deposits Rent
For current tenants, property managers might collect rent and deposit it. They handle the finances of housing tenants inside a property, so the owner doesn’t have to.
They can also deal with late payments and evictions. Owners who want to avoid conflict can trust their property manager to do it for them.
8. Reduces the Cost Of Management
Overall, a property manager reduces the cost of management. They make it easier and more affordable to stay in charge. With a property manager, everything becomes simpler for an owner, no matter where they might live.
You can expect to pay a property manager between 6%-12% of the total rental income of the property. On average, most property mangement companies charge 10%, so if you collect $2,000 in rent each month, you'd be paying $200 monthly. Property managers also charge a fee while the property is vacant, which is based on the expected rent.
Some pros and cons come with hiring a property manager. Let’s talk about a few of them.
The Pros Of Hiring A Real Estate Property Manager
Some definite pros come with using a real estate property manager to handle an estate. These can benefit you if you need some extra help with your space.
Some of the good things that come with hiring a real estate property manager include:
- A way to save time and energy on a daily basis
- A simple way to enable growth in the property
- A way to decrease stress that comes from property responsibilities
- A way to know everything that’s happening without getting too involved
These might convince you to purchase a real estate property manager.
Of course, some bad things come with hiring this person. Let’s talk about these as well to give you a better idea of what to expect.
The Cons Of Hiring A Real Estate Property Manager
Some cons come with using a real estate property manager to deal with a location. These are just as critical to consider if you’re thinking about hiring someone for your area.
Some of the bad things that come with hiring a real estate property manager include:
- It can cost you money out of your pocket
- There’s a chance they can go behind your back
- It can feel uncomfortable to let it out of your hands
These might draw you away from hiring someone as a secondary arm.
Now that you know everything about a real estate property manager, you can make the best choice for your space. There are good and bad that come with the extensive duties of a property manager.