Written by: Eric Davis
Having a rental property can be financially satisfying. If you have had a property for a long period, you know that managing it demands a large commitment; the supervision and maintenance are time-consuming. Hiring someone or a third-party organization can ease the weight. Though, you’ll need to be exceptionally cautious and attentive with your decision, as this person will represent you to your tenants.
What Is a Property Manager?
A property manager should be dependable and trustworthy, have good communication skills when working with owners, renters, and vendors, and be keen to maintain the property and help improve property values. A landlord can choose what tasks and duties they require to outsource and which they want to do themselves since most property managers offer different payment options such as monthly fee-based and a la carte.
Property managers ensure that rental should be operated according to the owner’s guidance—whether based financially or by living instructions, or both. They’re committed to managing everyday transactions. They find and screen prospective occupants, promote vacancies, manage leasing and agreements, show property tours, handle maintenance and repairs, and settle bills for the property.
How Does it Work?
Their exact responsibilities will vary based on the type of property being managed, the amount they are getting paid, and the management contract terms. There are some important roles a property manager can take on to assist rental property owners.
Property managers supervise everything on a daily occurrence. Awareness of how the real estate industry operates, such as modern property or housing trends, is a plus. They perform various tasks and a range of obligations to ensure the rental property is running smoothly.
And note that communication runs both ways: Immediate care to maintenance details is required by law, so your property manager needs to have the most reliable phone number and email to contact you in an emergency.
Duties & Responsibilities
- Safety and Security – Although future renters are considering styles and comfortability, they also want a sense of security. Safety goes hand-in-hand with the location. A secured community is a compelling factor in getting a larger number of tenants. Adding a reliable security feature is one way to make tenants feel safe at all times.
- Setting and Collecting Rent – A high-priced rental property may remain vacant, while a low-priced property may end up in tenants that are not adaptable to rental market increases. A property manager can assist you in setting the best rental rate that balances maximum monthly profit while keeping a low vacancy rate. To guarantee optimal cash flow, the property manager sets up a method to get tenants’ rent for monthly property costs be paid and strictly implement late fee policies.
- Screening Tenants – Finding and managing tenants is an added core duty of a property manager. Property managers are the owner’s front that is normally dealt with by tenants. They conduct tenant background screening to get the best-qualified tenants.
- Property Management – Property managers are responsible for the property’s physical management, including routine maintenance and emergency repairs. The property manager must keep the property in a maintained and habitable condition. Contractors and other repairers’ work must be inspected to ensure it is up to standards and promptly finishes their work.
- Budget Management – Property managers give landlords financial reports so they can easily file their taxes. Property managers should know accounting practices to guarantee correct bookkeeping for profit, tax, and investment purposes. Thorough reports regarding the property are important for accounting purposes. Records should include:
• All revenue and expenses.
• A list of inspections.
• Signed contracts.
• Documents of repairs and maintenance.
• A record of rent collection and insurance costs.
- Marketing the Property – Through long experience, a property manager knows precisely where to market your property and how to craft compelling advertisements — an important edge for getting your rental filled and avoiding vacancies. They will also have spotlight marketing techniques and build custom promotion strategies for each property. Great property managers are always on the loop of current market trends and conduct rental market analysis to get owners the most they can for their investment.
- Housing Regulations and Laws – There are many applicable rules and laws to abide by when renting and managing your rental property. These include local, state, and federal laws and fair housing regulations (such as the Fair Housing Act). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these ordinances.
Benefits and Disadvantage
There are several reasons to hire a property manager. Below is the list of positive and negative aspects one can consider in hiring a property manager:
• One Point of Contact. Nothing is quite as annoying as getting the runaround when you reach out to a business. Property managers can respond to issues quickly.
• Accountability. A very important feature of doing good business. Having a property manager, you’ll know without a doubt who is accountable for what occurs with your investment property.
• Free Time. When you choose to commit to having a property manager manage your rental property, you will be free from the day-to-day troubles and difficulties of dealing with tenants, following regulations, and working on all of the details.
• Costs. Basic management fees range between 4 and 12 percent. On top of that, there might be an additional charge. This fee covers the marketing of your home, i.e., listings, photos, video, etc. It’s definitely something to think about.
• Lack of Control. Owning something is very different than managing it. Property managers know that your property is your kid, and you need it to be taken care of. But, hovering over every move, it may only make their work more complex.
If you decide that you would prefer to turn over your rental business to a property manager after considering the pros and cons, the next step is to look for the right company.
Looking for the best property management company to attend to your investment is never simple. It’s a process that requires many thoughts, research, and intuition because picking the wrong professionals can lose your investment. And that’s something you don’t want to happen. Davis Property Management is committed and consistently goes above and beyond what is required in a professional and approachable manner. Call us today at 425-658-7471 or send us an email at [email protected].
Davis Property Management
At Davis Property Management, we provide fast, friendly, and professional service tailored to your individual property management needs.