As a landlord or property owner, it is important to understand the responsibilities of property management companies. That way, you can have clear expectations when you work with an established property management business.
Defining the Responsibilities of Property Management Companies
Real estate property management is easier said than done. It is a tedious task that involves the fulfillment of many property manager responsibilities.
It is the property manager’s duty to maximize your returns. Through careful monitoring and maintenance, they will make sure your properties last longer and are not missed. It is in the property manager’s best interest to keep the tenants and the landlord satisfied. They take care of many property management responsibilities ranging from budget changes, keeping the home occupied, handling records, and collecting rent.
Many rookie investors manage their properties themselves, believing it to be an easy job. However, over time, they realize the burden of property management and resolve to seek outside help. When the scope of maintenance and management increases, they tend to hire property management companies.
Indeed, property management has turned into a renowned profession. As a client of a property management company, though, it is important for you to understand what it means to have a property manager. That way, you can tell whether a property management company is skimping on your services. Here are the different property management company responsibilities you must know:
1. Stay Informed of the Law
Property managers have a duty to protect the property owner from liability. They do this by remaining compliant with all laws concerning property management.
This applies to every aspect of managing a property, including tenant screenings, safety compliance, eviction, and the like.
Keep in mind that the laws vary from state to state. For instance, when it comes to security deposits, California and Florida have differing policies.
California law states that a landlord has 21 days to return the tenant’s security deposit in full, along with other requirements. Meanwhile, in Florida, a landlord has 15 days to return the deposit in full if they do not intend to make a claim.
A property manager must stay up-to-date on ever-changing laws to ensure their client does not run into legal trouble. This includes the Fair Housing Act, the Americans with Disabilities Act, the Landlord-Tenant Law, and more.
2. Handle Finances
Trained to handle finances, property managers master the art of planning and enforcing budgets and operating charges. These details are important to set rental rates. Property managers balance rental rates with market demands. Also, they understand what can support the quoted rent. It is important for the property manager to have a firm understanding and knowledge of the rental market.
Additionally, the property manager records and reports all financial details to the property owner. They help the property owners understand income taxes, profit & loss, financial statements, and accurate budgeting.
You should understand that property managers follow customized financing and budgeting strategies. However, they may also have a team of support staff from the property management company helping them. After all, sometimes finances are too overwhelming to handle alone.
3. Market Your Property
One of your primary goals as a rental property owner is to find tenants to fill vacancies. While there are a lot of renters in the United States, marketing your property is not always an easy job. This is where professional property management comes in. Marketing client property is one of the responsibilities of property management companies.
Some property managers offer promotional advantages and special marketing schemes for tenants. In fact, they use strategic advertising schemes to attract more tenants. Advertising is important to reduce the overall vacancy rates of properties.
A property manager advertises your property by posting listings both online and offline. They should understand the rental market and tailor their methods based on current trends. A property manager should make use of all mediums, including social media, to find a quality tenant. They must also show your property to interested applicants.
4. Tenancy and Rent
Apart from offering reduced vacancy rates, property managers can also help you find high-quality tenants.
This is a key role of a property management company. They go through a tenant screening process, checking for criminal background, confirming employment, and verifying credit scores.
According to property managers, finding tenants is only the start. As they find and filter tenants, the property manager determines your rental rates based on market research and starts to raise requests and monitor rental activities. For instance, they focus on lease requirements, make sure the deposits are paid and rents are collected on time.
Throughout the entire process, property managers ensure tenant and landlord satisfaction. If any unexpected conflicts arise between the two (tenants and landlords), the property management company is responsible for resolving the issues. The property manager takes care of all non-payment and violation issues as well, making sure to handle difficult tenants professionally.
5. Property Management
As the name itself indicates, property management involves taking care of properties. That means both outdoor areas and the home’s physical structures.
Most property managers handle all parts of the home, including landscaping, walls, electrical works, appliances, roofing, plumbing, and more. Property managers should also maintain good bonds with other contractors.
This is how they get work done fast and well. When repairs and replacements happen, the property manager monitors the quality and costs. If you wish to own well-maintained properties, you should hire a property manager.
Additionally, the property manager will ensure improved tenant retention rates. Tenants are always attracted to properties that are well-maintained and affordably priced.
6. Risk Management
Last but certainly not least, property managers take care of risk management. Every property and investment comes with risks and challenges. These risks should be handled in the best possible way.
If you are new to risks in the real estate industry, you will need the assistance of a skilled property manager. Reputable property management companies have seen it all.
They are aware of the complications in letting out or owning properties — that is just part of the property management duties and responsibilities.
When it comes to administration, property management companies can help you in many ways. According to experienced landlords, property managers take care of the following:
- They mitigate risks and ensure that both the tenants and the landlords are safe.
- When required, they take cases to court.
- They help landlords find reliable tenants. This way the landlord doesn’t need to worry about rent or vacancy.
- They handle all finances and produce periodic reports. These reports are given to the landlords.
Why You Need Property Managers
Clearly, the responsibilities of property management companies take a lot of effort and time to achieve. However, without these companies, the burden of performing these elaborate and time-consuming duties will fall on you. Therefore, the best way to ensure you stay out of legal trouble, find quality tenants who pay reasonable rent on time, stay on top of maintenance, and mitigate risk is to seek professional help.
If you are ready to look for a property management company that suits your needs, start with Florida Property Management’s online directory. You can also use our directory to look for HOA management companies and real estate agents.
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