Landlords do not like receiving a call at 4 a.m. from a tenant complaining about a defect in their house or a dispute amongst themselves. You want to pay attention to them lest they move out or leave bad reviews. The ideal solution is to have a property manager capable of dealing with matters arising from your rental properties.
A property manager can help you run your real estate business by monitoring the property's condition and maintaining a good relationship with the renters. Getting the right property manager requires patience and careful research. This article will explain the general duties of a property manager, the steps to finding one, and the cost of hiring and keeping an efficient property manager.
What Does the Manager of a Property Do?
A property manager's main responsibility is to oversee the day-to-day operations of a landlord's real estate properties. The ultimate goal is to maximize rental income and occupancy, interact well with the tenants, and care for the property. They achieve these goals by performing the following duties:
- Collecting rent
- Enforcing leases
- Responding to renters' complaints
- Supervising repairs
- Budgeting and accounting
- Marketing vacancies
- Screening new applicants
- Ensuring the property complies with state regulations
These roles and responsibilities require a property manager to be skilled in various areas, such as real estate matters, communication, finance, organization, and problem-solving. In addition to these abilities, they should also know the landlord-tenant laws.
Benefits of Hiring a Property Manager
A property manager offers tremendous benefits to a landlord with residential and commercial properties. The gains outweigh the cost incurred as they help you achieve more results compared to doing it yourself. The following table explains the benefits you enjoy with every function they perform.
| Benefit from Hiring a Property Manager | Function They Fulfill |
|---|---|
| Saves you time and energy | Deal with tenants, inspect premises, and collect rent |
| Reduce the risk of problematic tenants. | Screen tenants and conduct thorough background history |
| Improved return on investment | Follow up on rent and maintain strict adherence to policy |
| Better property maintenance | Conduct regular inspections and facilitate prompt repairs |
| Avoid legal issues | Apply the state and local landlord-tenant laws and deal with disputes as they arise |
| Limit dealing with tenant issues. | Maintain good tenant relations |
| Professional financial management | Handle budgeting, accounting, and financial reporting |
Quote block: A reliable property manager ensures you provide a consistent and unique service level that helps retain more renters and enjoy peace of mind.
Steps to Find a Property Manager
Ask for referrals
Referrals from various people can help you get a diverse feel of the property managers within your area. Talk to your family, friends, or other real estate professionals about your search for a property manager. Be careful to assess the recommendation yourself, as everyone's experience with a referral may differ.
Research online for reputation
Online ratings, reviews, and testimonials can give you a picture of the property manager you will likely get. Various ways to research online include:
- Checking the company's profile on their website
- Going through their social media pages
- Checking their ratings on Better Business Bureau and other complaints boards
- Doing a basic Google search to see what you'll find
By the end of your search, you'll have an idea of the kind of property manager you would like to work with—based on the wealth of information you find.
Visit any property managed by the candidate
As you narrow down your search, visit the real estate properties managed by the candidates you are considering. Check how they care for the properties in terms of cleanliness and maintenance. Also, talk to the tenants about their experience with the property manager.
Interview candidates
Interviewing the candidates you've picked entails fine-tuning the information you already have about them. You want to hear from them how they would do their work. Ask questions such as:
- How do you conduct tenant screening?
- Do you have a network of service providers ready to handle repairs?
- How have you handled legal issues related to property management?
- What kind of residential lease agreement do you use?
Check licenses
Most states require property managers to obtain property management and real estate broker's licenses. Verify that the chosen candidate has an active real estate license, insurance coverage, and meets the local registration requirement before signing a property management agreement.
Start a property management agreement now
How Much Do Property Managers Cost?
Hiring and retaining a property manager attracts various costs covered in a series of fees. However, the charges vary depending on the state, property management firm, and the services the company offers. The following are examples of fees you may encounter:
- Account set up fee: Includes admitting the property and tenants into their system and thorough property inspection.
- Monthly management fee: This could be a flat rate or a percentage of the rent collected every month.
- Renter-replacement fee: You'll be charged a one-time fee that is half or the entire first month's rent.
- Maintenance fee: May be included in the monthly management fee or billed separately.
- Eviction fee: Usually a fixed flat rate plus court charges.
- Termination of contract fee: If you wish to end your business with the property manager, you may have to pay at least a month's property management fee even when you issue a contract termination letter.
Start your contract termination letter now
What Makes the Best Property Manager?
The best property manager has a combination of skills, attributes, and qualities that enable them to oversee a landlord's real estate properties. They must have superior organizational and communication skills because they handle multiple responsibilities and interact with diverse tenants and service providers.
Having an up-to-date knowledge of the state and local laws is a big plus as it helps to minimize costly risks and ensure compliance. Lastly, the best property manager must be solution-oriented and have people skills to help them address maintenance issues and maintain a friendly and approachable demeanor with the tenants.
As you settle on the most qualified property manager, make sure you design the proper documents for your real estate needs, such as a property management agreement template, residential lease agreement template, and contract termination letter template.
Helpful Resources:
HG.org - Property Management Law
Cornell Law - 25 U.S. Code § 4137 - Lease requirements and tenant selection
Landlords do not like receiving a call at 4 a.m. from a tenant complaining about a defect in their house or a dispute amongst themselves. You want to pay attention to them lest they move out or leave bad reviews. The ideal solution is to have a property manager capable of dealing with matters arising from your rental properties.
A property manager can help you run your real estate business by monitoring the property's condition and maintaining a good relationship with the renters. Getting the right property manager requires patience and careful research. This article will explain the general duties of a property manager, the steps to finding one, and the cost of hiring and keeping an efficient property manager.
What Does the Manager of a Property Do?
A property manager's main responsibility is to oversee the day-to-day operations of a landlord's real estate properties. The ultimate goal is to maximize rental income and occupancy, interact well with the tenants, and care for the property. They achieve these goals by performing the following duties:
- Collecting rent
- Enforcing leases
- Responding to renters' complaints
- Supervising repairs
- Budgeting and accounting
- Marketing vacancies
- Screening new applicants
- Ensuring the property complies with state regulations
These roles and responsibilities require a property manager to be skilled in various areas, such as real estate matters, communication, finance, organization, and problem-solving. In addition to these abilities, they should also know the landlord-tenant laws.
Benefits of Hiring a Property Manager
A property manager offers tremendous benefits to a landlord with residential and commercial properties. The gains outweigh the cost incurred as they help you achieve more results compared to doing it yourself. The following table explains the benefits you enjoy with every function they perform.
| Benefit from Hiring a Property Manager | Function They Fulfill |
|---|---|
| Saves you time and energy | Deal with tenants, inspect premises, and collect rent |
| Reduce the risk of problematic tenants. | Screen tenants and conduct thorough background history |
| Improved return on investment | Follow up on rent and maintain strict adherence to policy |
| Better property maintenance | Conduct regular inspections and facilitate prompt repairs |
| Avoid legal issues | Apply the state and local landlord-tenant laws and deal with disputes as they arise |
| Limit dealing with tenant issues. | Maintain good tenant relations |
| Professional financial management | Handle budgeting, accounting, and financial reporting |
Quote block: A reliable property manager ensures you provide a consistent and unique service level that helps retain more renters and enjoy peace of mind.
Steps to Find a Property Manager
Ask for referrals
Referrals from various people can help you get a diverse feel of the property managers within your area. Talk to your family, friends, or other real estate professionals about your search for a property manager. Be careful to assess the recommendation yourself, as everyone's experience with a referral may differ.
Research online for reputation
Online ratings, reviews, and testimonials can give you a picture of the property manager you will likely get. Various ways to research online include:
- Checking the company's profile on their website
- Going through their social media pages
- Checking their ratings on Better Business Bureau and other complaints boards
- Doing a basic Google search to see what you'll find
By the end of your search, you'll have an idea of the kind of property manager you would like to work with—based on the wealth of information you find.
Visit any property managed by the candidate
As you narrow down your search, visit the real estate properties managed by the candidates you are considering. Check how they care for the properties in terms of cleanliness and maintenance. Also, talk to the tenants about their experience with the property manager.
Interview candidates
Interviewing the candidates you've picked entails fine-tuning the information you already have about them. You want to hear from them how they would do their work. Ask questions such as:
- How do you conduct tenant screening?
- Do you have a network of service providers ready to handle repairs?
- How have you handled legal issues related to property management?
- What kind of residential lease agreement do you use?
Check licenses
Most states require property managers to obtain property management and real estate broker's licenses. Verify that the chosen candidate has an active real estate license, insurance coverage, and meets the local registration requirement before signing a property management agreement.
Start a property management agreement now
How Much Do Property Managers Cost?
Hiring and retaining a property manager attracts various costs covered in a series of fees. However, the charges vary depending on the state, property management firm, and the services the company offers. The following are examples of fees you may encounter:
- Account set up fee: Includes admitting the property and tenants into their system and thorough property inspection.
- Monthly management fee: This could be a flat rate or a percentage of the rent collected every month.
- Renter-replacement fee: You'll be charged a one-time fee that is half or the entire first month's rent.
- Maintenance fee: May be included in the monthly management fee or billed separately.
- Eviction fee: Usually a fixed flat rate plus court charges.
- Termination of contract fee: If you wish to end your business with the property manager, you may have to pay at least a month's property management fee even when you issue a contract termination letter.
Start your contract termination letter now
What Makes the Best Property Manager?
The best property manager has a combination of skills, attributes, and qualities that enable them to oversee a landlord's real estate properties. They must have superior organizational and communication skills because they handle multiple responsibilities and interact with diverse tenants and service providers.
Having an up-to-date knowledge of the state and local laws is a big plus as it helps to minimize costly risks and ensure compliance. Lastly, the best property manager must be solution-oriented and have people skills to help them address maintenance issues and maintain a friendly and approachable demeanor with the tenants.
As you settle on the most qualified property manager, make sure you design the proper documents for your real estate needs, such as a property management agreement template, residential lease agreement template, and contract termination letter template.
Helpful Resources:
HG.org - Property Management Law
Cornell Law - 25 U.S. Code § 4137 - Lease requirements and tenant selection
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