Novice landlords or those who have yet to use professional property management services sometimes wonder: what do property managers do to earn the money they are paid? The answer may involve a number of functions: from finding and screening tenants, to collecting rent and keeping rental properties in good condition.
The bottom line is that property managers turn vacant buildings into engines of cash production, and this is something few small landlords have the skills and contacts to do for themselves.
Getting Your Property Rented
A good property manager uses an expert knowledge of the local real estate market to keep occupancy levels high. The best managers know what properties in all classes rent for in the area of operation, and that can be a good indicator of the amount of rent a tenant will pay for any particular unit. On top of this, management companies know where the best tenants look for rentals and how to advertise a property so as to attract them.
Hand in hand with attracting good tenants comes the necessity of screening out bad ones. Good property managers will take each prospective tenant through a qualification process designed to weed out problems and make sure the renter is willing and able to pay the rent. Management companies will have standard applications for tennants. They will ask for references and call them to check the tenant out, and they will know what questions can and can not be asked to stay out of legal trouble. The company will also run a credit check on prospective tenants.
Dealing With the Tenant
Encounters with tenants come in three forms. One is the regular collection of rent. A property manager takes care of this as a matter of course, keeping track of any arrears and taking appropriate action to keep rental property producing income at the highest possible level. This may include suggesting periodic rent increases to keep the property in line with the rest of the market.
The second type of interaction with the tenant involves maintenance issues. A management company will schedule periodic inspections of rental property to make sure no issues are arising that will need to be addressed, such as leaks or electrical problems. In addition, the property manager will handle both routine maintenance like painting and emergencies like broken windows.
The third type of encounter occurs when the tenant becomes a problem. If a property’s occupant develops into a public nuisance, or if the property is damaged or laws are violated, the manager will have the local knowledge and contacts to take care of the situation before it develops into a serious issue that might affect other tenants.
Property Maintenance
A good property manager can also relieve an owner of the burden of running the building on a day to day basis. The manager will make payments out of rental income to cover maintenance issues and agreed upon improvements, and they will pay the salaries of doormen and other staff and contract for services like lawn care and window cleaning.
When the necessity arises, the management team will arrange for maintenance on the property, and if a tenant does happen to leave, the manager’s staff will take steps to get the unit rented again as soon as possible.
What do property managers do? This is a reasonable question, but a fair owner will have to admit that most of a manager’s activities are designed to maximize the return on the owner’s investment.
From gofivestarpm.com
