“What You Need To Know About A Property Manager” written by Mike Marko.
Are you looking to become a property manager, or possibly employ one to manage your rental properties?
Being an effective property manager is no small job.
It’s an important job for managing rental properties so that the owner is freed up to do other things. Property managers can also help ensure things are done correctly. They have had the experience and connections to make managing rental properties more efficient and productive.
But what all does a property manager do?
In this article, I will take the time to help you understand what a property manager is all about.
Understanding What A Property Manager Stands For
There are thousands of property management companies in the United States. These companies employ qualified property managers to manage all duties and responsibilities for their rental properties.
Since there is so much competition in the property management field there are specific training and duties that you should follow to separate yourself from the competition. Having a degree in Real Estate Management is required to be a licenced and certified property manager.
The way to separate yourself from other property managers is through hands on working in the the property management field and completing all the duties a property manager in an outstanding way.
The first step to separate yourself from other property managers is to really know and understand all the duties and responsibilities a property manager has on a daily and monthly basis.
Let’s start with the basics…
What Is A Property Manager?
A real estate manager or most commonly known as a property manager is someone who operates, manages all issues, and makes sure the real estate property is habitable and able to rent on an ongoing basis. Property managers commonly handle and manage numerous properties while running their business and receive a fee or compensation from an investor or landlord for performing these duties and responsibilities.
Property managers in basic terms, are the one who takes care of the property mainly because the owner of the property is unable to or does not have time or the desire to attend personally to the details of keeping the property available for rent.
Most commonly the owner of the property just prefers to hire a qualified professional like a property manager who can manage the property. The property manager normally will assume all the responsibilities and duties that are needed to be completed while managing the property.
What Do Property Managers Provide?
Now that you understand what a property manager does for the owner of the property, now we will begin to explore some of the duties and responsibilities. The property manager needs to learn these duties and responsibilities to keep their employer happy. Being able to perform these daily task exceptionally will help to separate yourself from other property managers and begin to grow your property management business…
Provides Marketing Strategies
The main duty of a property manager is to keep the rental units rented with qualified renters at all times. To do this the property manager is normally required to provide marketing services that help in finding and attracting potential qualified tenants. As part of a property manager’s responsibility is to run marketing campaigns to find applicants for their rentals that they are managing. Additionally, the property manager is responsible to provide an analysis of rents to the owners of the property and suggest appropriate rent levels for those who are interested in renting the property.
These rent levels is the amount of rent suitable for each property and greatly depends on the analysis of rents in the area and for the size and location of the rental property.
A property manager should also be knowledgeable in providing advertisements to attract tenants. Property managers can learn or have a better grasp of the current market conditions to help the owners maximize their profits while renting their properties.
Provides Application And Screening Process
As part of the rental process, property managers must be able to find, qualify, and determine reliable tenants for the properties they are managing.
During the rental process a property manager must sort through and complete the application and the screening process often for multiple applicants. A Property manager is responsible for setting up a background check process and be able to sort through multiple applications and find qualified renters for the properties they are managing.
When developing a background check process it is important to check into all past rentals, employment, criminal and credit backgrounds on all possible tenants. One of the most important responsibilities is to find renters who can pay rents on time and consistently.
To find financially qualified renters you should include a credit check in the background screening process to make sure that the potential tenant is capable of paying the rent in a timely manner.
Criminal Background Check
Property managers should know how to run a criminal history check to make sure that your property and your tenants are safe. They should also have knowledge on running an eviction history check to know if there are any suits filed, liens, and judgments that are associated with their potential tenants. They should also be knowledgeable of a Social Security verification to be sure that the potential tenant is not a fraud.
Employment and Personal Reference Checks
A property manager must be knowledgeable when it comes to tenant screening. Doing a complete background check into the applicant’s Employment is a requirement to establish their financial stability to pay rents on time. Additionally a property manager should know how to do background interviews with personal references and past landlords.
By completing the rental screening process correctly the property manager can make sure that only the eligible tenants will be able to rent the property…
Provides Cash Flows
One of the main reasons an investor or land owner hires a property manager is to guarantee revenues on their rental property. A property manager has the capacity and is responsible to collect rents and pay all needed improvements from the rent revenues to ensure that the investor makes a profit on their rental property. When a property manager can efficiently manage revenues to make a profit for the rental property this allows the owner save time and money. Property managers, in handling the day to day operations of a rental property, should make sure that cash flows continue while the owner of the property attends to other important matters.
One of the keys to being a great property manager is to properly plan and manage all necessary expenses needed to make sure that the property is in good condition. Payment of installments to lenders and profits to the owners are also part of their service as well as making sure taxes are paid on time in behalf of the owner.
Provides Full Operation Of The Property
Part of what a property manager can do is to make sure that the property operates well and is in good condition. A property manager makes sure that all needed repairs and maintenance is being taken care promptly and efficiently to avoid additional costs and unnecessary costs. Property managers main and basic responsibility is to make sure that the rental properties remain a habitable place for tenants to live in.
Often times the property manager is responsible to arrange for garbage collection companies to selecting and managing cleaning companies to take car of the rental properties they are managing. The property manager also takes care of tenant complaints, evictions, and lawsuits in place of the owner.
The property manager has a key role in making sure that the property is maintained and is a habitable place for tenants. It is also the property manager’s duty to make sure that profit is maintained and enhanced for the property’s owner.
Responsibilities Of Being A Property Manager
There are plenty or responsibilities a property manager must do on a day to day basis.
To make those responsibilities easier to understand we will look at and explain the most important responsibilities of being a property manager…
Responsibility To The Property
The property manager responsibilities to the property are:
Staying Up On Repairs and Maintenance
The main responsibility of the property manager is to take care the property and to make sure it is habitable for renters. To accomplish this responsibility the property manager is in charge of taking care of the maintenance and repairs if there are any for the property.
A good property manager will stay appraised of the property condition on a constant basis and should inspect every corner of the property to make sure no possible hazards are unfixed or pose a risk to tenants. When done correctly the property manager can easily make sure that the property is functioning in its best condition.
Keeping Property Rented
After all the necessary maintenance of the property is done. The property manager’s main responsibility is to find qualified tenants through a complete screening process. When all the rental properties vacancies are filled with qualified tenants the property is normally able to gain and provide better profit to the owner.
As a property manager one of the most important duties they have is to ensure the quality of the tenants renting the property. They have to ensure that the renters are those who are responsible in paying rents and will take care of the property.
Another responsibility to keeping rental property filled with qualified tenants is to run and find tenants through advertising the property for vacancies to attract qualified tenants. Developing a thorough screening process to find financially qualified and good citizens is one of the keys to succeeding as a property manager.
Responsibility To The Tenant
One of the main day to day duties a property manager has is the responsibility to deal with tenants.
Providing Lease or Rental Contract
After screening and finding the tenants to rent the property to the property manager must provide the legal paperwork or contracts that will list the terms and responsibilities of all parties while renting the property.
When finding a tenant to rent the property the property manager must provide a lease agreement or rental agreement so the rental will run smoothly and efficiently. When providing a lease or rental agreement for the tenant to sign it is important that the property manager thoroughly explained every detail of the contract before the tenant signs the agreement.
This helps in minimizing any unnecessary circumstances that may happen. When tenants know the terms of the agreement, they will be more responsible while renting the real estate unit.
Responding to Tenant Issues
Another key responsibility that the property manager has is to respond quickly and efficiently to any issue that could arise at the rental property. If a complaint arises from the tenant it is the property manager’s responsibility to attend to said complaint. Property managers must always be aware of what is happening to the tenants while renting the property and this also includes being prepared if any emergencies happen.
Handling Evictions and Vacancies
Another key issue a property manager will face is the eviction and termination of tenants renting the property. At the end of a lease or rental agreement it is the property manager’s responsibility to evaluate the rental and decide if they want to keep the present tenant or ask the to leave.
Often times tenants renting do not want to leave the property and thus will need to be forced out of the property through the eviction process. Understanding how to handle property vacancies and tenant evictions is key to succeeding as a property manager.
A successful property manager knows and understands the legal processes and ways to make the property vacant. Property managers are responsible in dealing with tenant evictions and terminations and if a case arise, it is the responsibility of the property manager to handle it legally in place of the owner.
Responsibility To Payments
Property managers have the responsibility to set the level of rental payments for the property and its owner. This is to attract tenants who will rent the property while making the property profitable for the owner. As a property manager it is your responsibility to understand the market condition and trends so that they can adjust to competitive rent levels for the tenants of the property.
The property manager is also responsible in collecting payments and turn them over to the owner after all expenses to the property are handled. Additionally, it is their responsibility to settle any late payments in order to maintain the cash flow. Paying of taxes, maintenance, repair, and paying other personnel are also part of the responsibilities of a property manager.
Responsibility To Keeping Records
As a property manager you must develop a system that helps to maintain and keep records, applications, and contracts for the properties you’re managing. It is important that all files and data are kept well and that all expenses and money received is properly recorded and kept in data records. Additionally, property managers must make sure that budgets, schedules, and deadlines are met as well as reporting them to ownership in a timely manner.
Here is a list of the records that need to be taken care of by the property manager:
- List of all the inspections done to the property.
- All signed leases.
- All maintenance requests.
- All complaints by tenants.
- Records of any repairs along with its corresponding costs.
- Cost of maintenance.
- A record of all rent collection along with insurance costs.
- Provide reports and accounting of all processes to ownership of property
Responsibility To Supervision
As a property management business grows you will need to add employees to help maintain the rental properties you are managing. Supervision of employees, contractors for fixing rental issues and upgrades, and any other professionals needed for the upkeep of the property are also the responsibility of the property manager.
It’s important that the supervision of co-employees is properly and routinely done by the property manager. This is to make sure that they are doing their job well and not slacking off which may lead them to get fired easily.
The property manager also takes care of the salaries of his or her co-employees. Additionally, a property manager should have a book or a list of contractors, cleaners, pest control, and other services needed when issues arise at the properties.
Property managers must check if there are no vandalisms on vacant properties or excessive damage by tenants to the property through supervision and routine maintenance of the property. A good property manager will also continue to monitor and evaluate contractors and repairmen that are hired to maintain the property and to make sure they are doing their jobs properly. It is the property manager’s job to make sure that contractors and repairmen are able to complete their repair and maintenance work at the rental properties in a timely manner…
Final Thoughts On What To Know About A Property Manager
You now have an idea of the roles and responsibilities of being a property manager. Knowing this you can now be better informed about whether you want to employ one for your rental properties, or if you want to become one.
Take the time to go back and re-review what you just read to help ensure you are more equipped as property manager.
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