Property managers provide a long list of extremely helpful services property owners need for the care, maintenance and management of their rentals. These managers find qualified renters by marketing properties, screening applicants and ensuring rates stay competitive. They also ensure associated taxes are paid, collect rent, cover property overhead and comply with local, state and national laws.
Property management services are somewhat customizable. You can have a property manager who handles some aspects of your rental, while you manage others. The specific terms depend on how much you are paying them and the agreed-upon contract. Below are some basic guidelines about these managers and their role, according to the pros at unisonpropertymanagement.ca.
What is a property manager?
Property managers ensure your rental property is well managed and maintained according to your instructions. They can help you achieve a better tenancy rate, find more qualified tenants and effectively manage workers. They can also ensure your property offers competitive living conditions attractive to the market and priced appropriately. Your manager collects payments to ensure they are received on time, maintains your budget and keeps up with maintenance requirements.
How does this management work?
Good property managers (PMs) provide such effective handling of the rental’s day-to-day requirements that owners do not feel the typical stress of ownership. They also provide the support of their real estate industry knowledge, to help owners steer clear of potential pitfalls.
Early in the management relationship, your PM meets with you to understand your goals for the property. Together, you establish an agreement for which services they will provide and how much you will pay them on an ongoing basis. Most PMs manage rent, tenants, budgets, taxes, rental records and maintenance. They ensure you have top quality residents according to the state and national laws governing tenant screening, security deposit handling, lease terminations and conduct evictions. Your manager also complies with property safety standards.
Individual property managers and management companies offer their own niche expertise. Some focus entirely on commercial properties or industrial properties. Others only lease out and manage residential properties, such as apartments, condos, townhomes and single family homes.
Setting Rental Prices
Any landlord must set the price of rent. Because this pricing affects how easily a property will rent and whether it will attract prospective tenants, most property owners defer this process to property management. The manager typically will do a survey of similar properties with the same features and amenities in the immediate area. It is also important to do this on an annual basis, to ensure the rent remains competitive.
Collecting Tenant Rent
Property managers use their own systems to collect tenant rent. They ensure all tenants have paid by a specific collection date to maintain ideal cash flow for the property. They also use this date to structure expense payment. When tenants do not pay on time, the PM enforces a late fee policy.
Tenant Screening
Screening tenants is a critical part of a PM’s responsibilities. By adequately screening tenants and managing them, they help owners avoid the headaches and financial problems associated with evictions. Proper screening also reduces tenant turnover, complaints and maintenance problems.
Maintenance
Property management keeps the property in legal, safe and habitable condition. They use their connections to find the right contractors to fulfill maintenance or repair needs. They also ensure routine maintenance is completed and emergency repairs are made in a timely manner. When workmen complete projects, the PM inspects the work to ensure satisfactory resolution.
Budget Management
PMs are often tasked with managing the property budget and its financial records. This budget typically covers general maintenance, repairs, administrative requirements and insurances.
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