Real estate investors and landlords often finish projects and hire professionals to manage their properties. This is usually because property management involves a lot of activities. Furthermore, most of these individuals want to avoid the hassle and direct contact with tenants. While acquiring such services from third-party companies is the best option, what are some of the responsibilities handed over to property managers?
1. Property Marketing
Property management involves the marketing of the rental units listed under an agency. Finding tenants is the only way to do business in this sector, and property managers should use their different approaches to get quality tenants to occupy their listed units.
This goes both for commercial and residential properties. Some major selling points that property managers consider while marketing their properties are the space available, proximity to local amenities, transportation, and safety in the region. These factors mostly rank top properties and top selling factors.
2. Setting, Adjusting and Collecting Rent
It’s the responsibility of property managers to set rental rates for listed properties. This should align with the local market research and how high a unit compares to its competitors. Rental rates should be fair enough to attract tenants and make good profit margins for real estate investors.
Furthermore, adjusting the rental rates is part of their job. Whether it involves reducing or increasing the current rental rates, a property manager should consider the market needs and general ranking of the property compared to its competitors.
Collecting rent from tenants is also part of the job description of property managers. They should set a due date for rental payments and penalties involved in delays and follow-up if payments aren’t made on time. Agreeing on solid payment terms is also tasked with property managers, which depends on the mode of payments that a tenant prefers.
3. Tenant Screening
Property managers are responsible for finding quality tenants and only choosing the best fit for the unit. The tenant screening procedure differs from one property manager to the next. Still, it typically involves checking the ability of a tenant to pay for the rent and any criminal record applied. Property managers must utilize their tools to get as much information about a tenant as possible to avoid future complaints or back and forth regarding rental payments.
4. Coordinating Tenant Turnover
A property managers’ responsibility is to facilitate the moving out of one tenant and moving in of another.
It’s essential to check the rental unit’s condition after they move out of the property. Their initial deposit is usually held for some time to cater for any repairs on damage done to the property during the former tenant’s stay at the unit. Moreover, property managers should process any repairs and renovations on a property before a new tenant moves in to ensure the unit is safe and comfortable to live in. Such repairs are done immediately after moving out so that showing the units to potential tenants can be facilitated.
5. Handling Complaints
Living within a community can be troublesome sometimes, especially if the tenants aren’t on the same wavelength. Ideally, you would find typical complaints from other tenants about pets or loud music from their neighbors. A young tenant might find no fault in hosting parties with friends, but this won’t be as comfortable for a tenant trying to put her toddler to bed.
Property managers should resolve such cases between tenants to ensure harmony among them and that they are living well with each other. This is a common issue in apartments as many tenants are involved.
6. Repair and Maintenance
Property managers are responsible for contracting professionals to handle all repairs reported by tenants. The property manager should coordinate any plumbing, A/C, tiling, roofing, or any further damages. They should assess the damage and call an expert to fix the issue. This ensures the tenant has a safe and comfortable living space.
These fixes and renovations can be done when the tenant is in the unit. The property manager can organize an alternative space to host the tenant for a few nights if the renovations are delicate enough and might interrupt the living.
7. Financial Management
Financial management is also part of the job description of property managers. This includes analyzing and establishing reasonable rental rates, calculating the costs, determining the profit margin, and paying the rates and taxes on the property. Property managers should accomplish financial objectives in the interest of all parties involved.
8. Overall Supervision
Property managers are the overall supervisors of the property. They should facilitate financial management, tenant management, contracting third-party companies for outsourced services, and performing all the tasks agreed upon by the real estate investors. This is often under contract depending on the terms and conditions agreed by the landlord/lady.
9. Property Security
The security of the property is a primary consideration for many tenants. Property managers should ensure that the property is under good security, that is, by hiring a security agency or installing security facilities. This is to avoid security issues and maintain a good rapport on the market. Security is a vital issue, and ensuring the safety of the tenant is something that property managers take seriously.
10. Enforcing Landlord-Tenant Laws
Expert property managers should be knowledgeable about all the landlord-tenant laws and ensure that they enforce them accordingly. They should also be up-to-date with all the evolving local landlord-tenant laws as the real estate sector grows. This includes the tenant screening process, lease termination, eviction notices, property safety standards, handling security deposits, etc. All these are supposed to be included in the lease contracts.
Hiring property managers is the best solution for real estate investors. It takes a lot of responsibilities off their shoulders, and it also ensures that you get the most out of your investment. Local Dwelling is a leading property management company in Dallas. Reach out to us for all your property management inquiries.