The parties to a PMA are typically the property owner (or owners) and the property management company or individual property manager.
The property owner, often referred to as the "landlord" or "principal," is the person or entity that legally owns the property. They are hiring the property manager to oversee the day-to-day operations of the property on their behalf.
On the other side of the agreement is the property management company or the individual property manager, sometimes called the "agent."
This party is tasked with managing the property following the terms of the agreement. Their responsibilities may include marketing the property, collecting rent, maintaining the property, addressing tenant issues, and providing regular reports to the owner.
It's crucial to note that there could be additional parties involved in a Property Management Agreement under specific circumstances.
For instance, if the property is owned by a group of investors, all members of the group could be parties to the agreement. Similarly, if the Property Management company is a large organization with different departments handling various aspects of Property Management, the agreement could involve multiple parties within the company.
In some cases, legal entities like trusts or estates could be parties to the agreement if they hold the property. The agreement is tailored to define the rights, obligations, and roles of all parties involved, thus ensuring smooth operation and management of the property.
Property Manager Functions
Property manager functions are determined by the specifics of the Property Management Agreement (PMA). These duties can cover a wide variety of responsibilities tailored to the needs of each individual property owner.
It's essential for the manager to understand these stipulations and act accordingly.
Rent responsibilities form a significant aspect of property management. This often involves setting rent levels, which requires an understanding of current market rates to ensure competitiveness and profitability.
Additionally, property managers are charged with collecting rent from tenants, ensuring timely payment and financial stability.
Lastly, they also have the role of adjusting rent in accordance with local and state laws, a task that requires a thorough grasp of legal guidelines.
Tenant management includes finding and screening potential tenants, a process that ensures the selection of reliable and respectful occupants for the property.
Once tenants are in place, the property manager is also responsible for addressing any complaints, ensuring a satisfactory living environment.
The manager also oversees tenant move-outs and, in more challenging situations, may be required to manage eviction processes, adhering to local and state laws.
Maintenance and repairs
Maintenance and repairs are key to property management. This involves the physical upkeep of the property, which includes conducting regular maintenance checks to ensure the property remains in good condition.
These checks help to prevent extensive damage and keep the property safe and habitable. In addition to routine care, property managers are also responsible for handling emergency repairs, acting swiftly to resolve urgent issues that may arise.
Understanding and complying with laws
Understanding and complying with laws is a critical aspect of property management.
Property managers must keep abreast of the latest local, state, and federal legislation that governs the renting and upkeep of rental properties. This legal knowledge ensures they operate within the bounds of the law, protecting both the property owner and the tenants.
Compliance with such regulations not only prevents legal disputes but also promotes trust and professionalism in the property management industry.
Additionally, this understanding of law extends to areas like tenant rights, safety standards, and eviction procedures, ensuring fair and lawful management practices across the board.
Managers are entrusted with maintaining exhaustive records for the property, which include a detailed account of income and expenses.
This allows them to keep track of financial health and operational costs. They also need to register inspections, signed leases, maintenance requests, and any complaints or repairs, ensuring all interactions and events are well-documented.
Records of rent collection, insurance costs, and any incidents provide a transparent and chronological account of property management activities, fostering trust with property owners and tenants.
Budget management is a crucial role often shouldered by property managers. They are commonly responsible for managing the budget for a building, which involves careful planning, monitoring of income and expenses, and strategic decision-making.
An integral part of this role is the maintenance of all necessary financial records, vital for accountability and strategic planning.
In some cases, property managers also take on the responsibility of paying property taxes. This added role not only ensures timely payment but also entails understanding and adhering to the relevant tax laws and regulations.
Property inspection forms an essential duty in property management. Regular inspections are carried out to assess the current conditions of the property, ensuring it remains in a good state of repair.
These checks also serve to confirm tenant compliance with lease terms, safeguarding the property's value and condition.
Addressing potential issues proactively is another critical aspect of these inspections, helping to prevent minor problems from escalating into major ones.
Overall, thorough and regular property inspections contribute to the longevity of the property, tenant satisfaction, and maintaining a strong landlord-tenant relationship.
Marketing and vacancy filling
This process involves creating ads, listing the property on appropriate platforms, and showing the property to potential tenants.
Property managers are in charge of advertising the property to fill vacancies. They are tasked with advertising the property effectively, which involves creating appealing and accurate ads that highlight the property's best features.
Listing the property on suitable platforms, both online and offline, is another part of this job, maximizing the property's exposure to potential tenants. Property managers also show the property to interested parties, providing a comprehensive tour and answering any queries.
This strategic and efficient process of marketing and vacancy filling helps ensure continuous occupancy, contributing to the profitability of the rental property.
Establishing and managing relationships
This function involves the negotiation of contracts with vendors and the resolution of conflicts, if any.
The property manager must be able to foster positive relationships with a diverse group of stakeholders, including tenants, vendors, and other relevant parties. This involves creating a good rapport, often through effective communication and customer service.
Additionally, the manager negotiates contracts with vendors, ensuring the property receives quality services at fair prices. In situations where conflicts arise, the manager also plays a critical role in resolution, helping to maintain harmony and continuity in property operations.
Regular updates to the property owner are an integral part of this process, keeping the owner informed about all critical aspects of the property.
This includes updates on the property's financial performance, providing a clear picture of its profitability and any areas for improvement.
Besides financial updates, the property manager also reports on the physical condition of the property, highlighting any maintenance needs or structural issues.
By effectively communicating these insights, the manager helps the owner make informed decisions and maintain the property's value and desirability.