What Does a Property Manager Do, and Do I Need One?

April 10, 2024
Comments Off on What Does a Property Manager Do, and Do I Need One?

You are a rental real estate property owner, and you’ve recently felt the weight of your everyday tasks. You think that ensuring the business runs its smooth course is a bit challenging because there are many things to control, and you don’t have the time. If that sounds a bit like you now, don’t worry. You are not the only one. Many property owners and landlords don’t have the time, resources, knowledge, and expertise to run a rental housing business successfully, so they turn to property management companies and hire property managers to lift the weight from their shoulders.

So, what exactly is a property manager, and what do they do?  

What Is a Property Manager?

A property manager is a professional whose skills, knowledge, and expertise lie in successfully running a rental housing business. They know the ins and outs of the management side of things, including all legal matters that must be implemented. They ensure that both the tenants and the property owner are satisfied, the tenants with the living conditions, and the property owner with the smooth operation of the business, granting them steady passive monthly income. 

What Does a Property Manager Do?

A property manager is responsible for overseeing the daily operations of real estate properties on behalf of property owners. Their primary goal is maintaining and increasing the property’s value while ensuring its smooth operation. They can even be advisors to property owners for expanding investment portfolios. Here are some typical duties of a property manager:

Tenant Relations

Property managers handle all interactions with tenants, including screening new tenants, collecting rent, addressing tenant concerns or complaints, and enforcing lease agreements.

Property Maintenance

They are responsible for ensuring that the property is well-maintained. This includes scheduling and overseeing repairs, regular maintenance tasks such as landscaping and cleaning, and ensuring compliance with safety and building codes.

Financial Management

Property managers handle all financial aspects of the property, including setting rental rates, budgeting, paying bills, collecting rent, and maintaining financial records.

Marketing and Leasing

Property managers often market vacancies, show the property to prospective tenants, and negotiate lease agreements. They may also be responsible for advertising the property through various channels.

Risk Management

Property managers must identify and mitigate potential risks associated with the property, such as liability issues, safety hazards, or legal disputes.

Legal Compliance

They ensure that the property complies with all relevant laws and regulations, including fair housing laws, landlord-tenant laws, zoning regulations, and health and safety codes.

Administrative Tasks

Property managers handle various administrative tasks related to property management, such as maintaining records, preparing reports for the property owner, and coordinating with vendors and contractors.

Tenant Communication

Regular communication with tenants is essential for addressing their needs, resolving disputes, and ensuring a positive tenant experience.

Do You Need One?

Let’s try to answer this question by taking a real-life example.

Let’s say Sarah owns multiple rental properties in a busy city area. She has a full-time job as a marketing manager and very little free time to deal with the daily tasks of managing her rental properties. At first, she tried to handle everything herself, but it became too much for her to handle alongside her career.

As a result, Sarah’s properties suffered. Problems like maintenance issues, tenant complaints, and extended vacancies persisted because she couldn’t give them attention.

Seeing her properties decline in profitability and struggling to keep up, Sarah hired a property manager. Here’s how it made a difference for her:

With the property manager taking charge of tenant relations and vacancy management, Sarah no longer had to worry about screening tenants or handling lease agreements. This led to quicker filling of vacancies, minimizing income loss, and ensuring prompt resolution of tenant concerns.

Property maintenance and repairs also saw a notable improvement under the property manager’s proactive approach. Maintenance issues were addressed promptly, preserving the properties’ value and enhancing tenant satisfaction. 

Meanwhile, the burden of financial management was lifted off Sarah’s shoulders as the property manager handled tasks such as setting rental rates, collecting rent, and maintaining financial records, providing her with transparent financial reporting.

Furthermore, with the property manager ensuring legal compliance and risk management, Sarah could rest assured that her properties were in line with regulations, reducing the risk of legal disputes or liability issues. 

Ultimately, delegating the day-to-day responsibilities of property management allowed Sarah to reclaim valuable time and reduce stress, enabling her to focus on her career and personal pursuits without being weighed down by the demands of managing her rental properties.

Conclusion

In summary, property managers are crucial for smooth rental property operation, tenant relations, maintenance, finances, and risk management. Hiring a property manager, like Sarah did, can relieve owners of daily tasks, boosting profits and reducing stress. Entrusting properties to a professional manager ensures long-term success, especially for owners with time constraints or limited expertise.

Related Posts