Property managers are third party businesses hired by property investors or landlords to manage their day-to-day operations at their rental property. Are you planning on hiring a third-party property manager? If so, you need to first learn what benefits property managers can be for your rental property business.
If you keep scrolling through this article, you will find some of the common tasks property managers are responsible for, from rent collection to managing your financial records.
1. Rent Collection
One of the most important jobs of property managers is to deal with rent. These professionals are responsible for coming up with a rent level that tenants will agree to. Of course, this is not as easy as it sounds. This job entails have an understanding of the local market and suitable renters with respect to where the property is located.
Property managers are also designated the task to collect rent to ensure an optimal cash flow and strictly enforce penalties on late payments. While we’re on the topic, property managers may also make adjustments to rent based on provincial and municipal laws and the landlord’s ROI requirements.
2. Attracting Potential Renters
Since property management companies are also given the responsibility to fill vacancies, it is their job to look for quality tenants who are a good fit for a particular property. For this reason, they should be able to advertise units effectively and showcase their features in a convincing manner.
3. Screening Applicants
Naturally, once the applications start rolling in, a property management team should run them through a rigid screening process. This screening process differs from company to company but mostly entails running a credit check, checking proofs of employment and analyzing the legitimacy of references.
4. Managing Repairs and Maintenance
This particular duty is of utmost importance. Property managers have the responsibility to keep their property in a habitable and safe condition, which includes arranging repairs, timely maintenance, and updating facilities such as parking and laundry.
Property management companies should either be able to conduct routine maintenance, including checking for leaks, pest removal, trash removal, landscaping, or hire a third party company to perform these tasks.
Similarly, when renovations or repairs are required, property managers should either fix these issues themselves or hire professional contractors to do the work for them within a budget. In other words, a good property management company should have a reliable network of contractors, carpenters, plumbers, and electricians.
5. Knowing Landlord-Tenant Laws
Since property managers are directly involved in tenant disputes or eviction as well as the legal functioning of rental properties, they should be well-versed in landlord-tenant laws. This entails knowing the legal process of screening tenants, terminating leases, managing security deposits, safety compliance, eviction procedures, etc.
The best property managers not only have an in-depth understanding of laws but are also able to carry out these responsibilities in a way that is deemed suitable by these laws.
6. Managing a Budget and Financial Records
Property managers are the supervisors of the day-to-day activities of rental units and are, therefore, also responsible for maintaining a budget and keeping updated records. Managers are typically given a budget to operate with and it's their duty to order repairs, make improvements, and allocate an emergency fund. Property managers often provide tax forms to the landlord during the income tax season.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can share some of your burdens.