Prior to hiring a Property Manager, what are your expectations of your Property Manager? Are they an asset or a liability?
First and foremost you have to first understand the roles, duties, and responsibilities of a property manager. Note that not all managers are able to perform the same number of responsibilities.
There are some who do more, while others do less. Find a property manager who suits all of your needs.
Here are 14 main duties and responsibilities of a property manager:
1. Decide the rent price
Property managers are responsible for setting the rental price. The best possible rent price is not just affordable for tenants but it should be profitable for the landlord as well.
Property Managers are well aware of the surrounding area averages, location, and the property’s amenities feature to come up with the perfect rent amount for your investment property.
2. Arrange vacant units
Having vacant units is bad for business every real estate investor and property manager knows this.
if your property has a vacancy, it’s the duty of the manager to hire people to clean, repair, and maintain the unit.
Also, they can provide ideas on how to dress up vacant units. This can give the unit more appealing and rent-worthy to prospective tenants.
3. Market and advertise rental vacancies
Marketing and advertising vacant units are some of the duties of a property manager.
Their connections and vast knowledge of the industry allow them to know when, where, and how to market rental units, in order to attract as many prospects as possible.
This helps them look for the perfect tenants for all the vacancies in your property.
4. Do a background check and approve tenants
Another important duty of the property manager is to do a background check on their prospective tenants.
A good property manager will go through a checklist before approving an application., since they are well-versed with laws relating to rentals, they will be able to filter out qualified applicants.
This knowledge can help them steer clear from possible lawsuits and discrimination under the Fair Housing Act (FHA).
At the end of the screening process, you can usually expect to have the perfect tenant.
5. Draft a lease agreement
The property manager is responsible for setting up lease terms that can protect the property and the owner’s interests.
The lease agreement should be able to cover everything including the security deposit, late rent fees, and the consequences of failing to abide by it.
6. Manage tenant complaints and issues
If there are tenant conflicts, it’s the manager’s responsibility to mediate and resolve such issues.
They are also responsible for solving any complaints and meeting tenant needs may have regarding the property.
Their general main goal is to keep the tenants happy and well taken care of.
7. Secure and fix up rental fees
Property managers are well-versed in matters regarding rent collection. It’s their main duty to enforce and collect late payment fees.
It is the property managers’ responsibility to set and adjust the rental fees, whether they decide to increase or decrease the rent, it will still depend on the current state of the market and other factors.
8. Supervise property maintenance and repairs
Property managers are responsible for keeping the property healthy, livable, presentable, and operational. This is why, whenever there is breakage, damage, or tear on the property, it’s their duty to carry out repairs.
This also applies to regular preventive maintenance tasks like cleaning, repainting, drain inspections, and so on.
The manager can either do these tasks using their own service people or by outsourcing the work to service providers.
9. Over-see on-site employees
It’s the duty of property managers to supervise the on-site employees like cleaners, security personnel, or concierge.
They can ensure that these employees are working efficiently, as expected of them. Managers can also fire or hire these employees if needed.
10. Handle the rental property
When a property is vacant, a property manager has to ensure that it is well-protected and taken care of. It means hiring people to look after the property to avoid squatting and vandalism.
If there is ongoing work being done to the property, managers oversee its timely completion.
11. Administer evictions and prepare move-out
It is a manager’s responsibility for evicting difficult tenants it’s because they are fully aware of what to do and how to do it legally.
When a tenant is planning or about to move out, the property manager needs to inspect the rental unit. This is to make sure that everything is in place and that the unit doesn’t have any damages.
If everything is okay, then they process the move-out and return security deposits. If then, there were any damages, a portion of the security deposit will be returned.
Then, they will have the unit cleaned out and prepare it for a new tenant.
12. Ensure that the rental property is legally compliant
The property manager has to ensure that all property-related processes are compliant with local, state, federal, health, safety, and housing laws.
13. Organize and file taxes
On behalf of the owner, the property manager can file taxes.
If the owner prefers filing their own taxes, the property manager can offer guidance on how to do it.
14. Keep records and create regular reports
Records and reports can help you to keep track of your property’s growth and finances.
It’s usually the duty of a property manager to keep accurate, up-to-date, and thorough records of your investment and property.
Among other things, these records are needed to document all your property’s expenses and gross income.
These lists can help you determine the roles and responsibilities of a property manager.
We hope this can help you set expectations in hiring a property manager.