Real estate investment holders have since realized the joys of working with a property manager which allows them to focus on other investment that require their personal attention and expertise. A property manager, on behalf of the real estate investment holder handles the daily operations of his real estate investment for an agreed fee. They can manage all types of properties, from single family homes to large apartment complexes.
The responsibilities of a property manager will vary based on their salary and the specific terms of their management contract, but can include the following:
- Responsible for Rent
Property managers are responsible for setting the initial rent level, collecting rent from tenants and adjusting the rent.
- Setting Rent: The property manager knows how to set the right rent level to attract tenants to your property. They have an understanding of the market where the property is located and have looked at comparable properties in the area.
- Collecting Rent: They play the role of the enforcer. They ensure optimal cash flow by setting a date to collect rent each month and/or yearly as agreed and strictly enforcing late fees.
- Adjusting Rent: The property manager can increase the rent by a fixed percentage each year, according to individual state and/or municipal law. They can also decrease the rent if they deem it necessary.
- Responsible for Tenants
One of the main responsibilities of the property manager is to manage tenants. They are involved in all capacities, from finding the tenants and dealing with complaints to initiating evictions.
- Finding Tenants: Property managers are responsible for marketing the property to fill vacancies. They know where to advertise and what to include in their ads. They also understand what attracts tenants, so they can suggest making cosmetic improvements to help makeover the property.
- Screening Tenants: They are responsible for sorting through the prospective tenant applications to find the tenant that is the best fit for your property. They have a consistent screening process, including running credit checks and criminal background checks, which can decrease your chances of being accused of discrimination. Experienced property managers have seen hundreds, even thousands, of tenants, so they have a better idea of how to select the right tenants; those who will pay their rent on time, have a longer tenancy and create fewer problems.
- Handling Leases: They are responsible for setting the length of the lease and making sure it has all the necessary provisions to protect the owner. This includes determining the amount of security deposit required.
- Handling Complaints/Emergencies: They are paid to deal with maintenance requests, noise complaints and have the necessary contacts to handle emergency situations.
- Handling Move Outs: When a tenant moves out, the manager is responsible for inspecting the unit, checking for damages and determining what portion of the security deposit will be returned to the tenant. Subsequently, they are responsible for cleaning the unit, repairing any damages and finding a new tenant.
- Dealing with Evictions: When a tenant does not pay rent or otherwise breaches the terms of a lease, the property manager understands the proper way to file and move forward with an eviction.