What Does a Property Manager Do?
It’s common for investors who own rental properties to hire someone to manage the investment for them on a day-to-day basis. Property managers perform many of the tasks that investors simply don’t have the time or the inclination to do. By managing the day-to-day operations of a rental property, they help maximize the income it generates and control expenses. They also make it feasible for investors to own properties that are not geographically in their area. Find out more about what does a property manager do below and how we can help your property.
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What Does a Property Manager Do?
Legal Compliance
Property managers help landlords stay on the right side of landlord/tenant laws and regulations. Landlords must comply with numerous state and municipal laws, which differ from state to state and city to city. An investor who owns multiple properties in multiple jurisdictions could find it very difficult to avoid legal issues. A legally savvy property manager can save you a great deal of money in legal fees and possible fines or settlements.
Maintenance
Property managers accept maintenance requests from tenants and take appropriate action. Responding quickly to maintenance requests is important to keep tenants satisfied and maintain a high occupancy rate. Property managers know how to address maintenance requests, from fixing broken appliances to pest control. They may perform some maintenance tasks themselves, while outsourcing others. Larger property management companies may have their own in-house maintenance personnel. Your property manager is your first line of defense when it comes to maintaining the value of your property.
Filling Vacancies
Property managers help minimize the time that units lie vacant In between tenants. They market vacant properties, show them to potential new tenants, Accept and manage applications, prepare leases, and handle all of the tenant background checks and other tasks associated with turning units over between tenants. They also ensure that units are clean and everything is functioning properly before a new tenant moves in, setting the stage for a mutually beneficial landlord/tenant relationship.
Rent Collection
Property managers collect rents, sometimes online or using payment apps, and deposit rent payments into the appropriate account. They are responsible for collecting past due payments and, if necessary, they handle evictions. They know how to achieve the right balance between compassion and your bottom line, when a tenant is unable to keep up with rent payments. Any number of unfortunate events can result in even good tenants falling behind in the rent, and it’s important to proceed with respect and courtesy for the individual even when eviction becomes necessary.
Scope of a Property Manager’s Responsibilities
Property management agreements are customized to the particular situation. Some rental property owners may prefer to handle certain aspects of property management themselves, while others prefer to remain hands-off and have a property management company handle just about everything. This is a decision that typically is made up front, before selecting a particular property manager.
The cost of hiring a property manager depends to a large extent on the management tasks that will be delegated to that individual or company.
How Much Does It Cost to Hire a Property Manager?
One common way that property managers are paid is through a percentage-based management fee. This usually averages between 6% and 12% of the property’s revenues from rents. Alternatively, you might be charged a flat fee, which varies depending on whether you hire an individual property manager or a property management company. Property management costs are higher in some areas than in others.
Some property managers may charge additional monthly fees on top of their percentage-based management fee or flat fee for the month’s services. For example, there may be an additional monthly repair fee for the potential costs of making repairs in tenants’ units. Some property managers will bill the additional fee only when a repair has been made, usually charging a little extra for their management of the incident. Palmetto State Properties doesn’t mark up any of their vendor repairs.
And some property managers also charge a fee to cover the costs of acquiring new tenants. This leasing fee is for marketing the property, taking applications, managing the selection process, move-in inspections, etc. Again, this could be a flat fee or a percentage of monthly rents that ranges between 30 and 100% of the first month’s rent.
In closing, hiring a property manager can be a very smart move for any landlord and a great business partnership. One where both parties benefit from beautifully run properties with happy tenants.
Get in touch today to find out how we can help.
