In real estate, there are homebuyers and there are investors. Homebuyers obviously purchase a residential unit to live in it. On the other hand, real estate investors are those who buy properties with the purpose of renting it out.
Because these investors typically have multiple properties that are situated in various locations, they can’t be there personally to take care of their real estate investments. So, investors tap on property managers to help them handle their properties. Some investors might also hire a property manager because they don’t have experience managing a real estate property when natural disasters like floods in North Carolina or snowstorms in Michigan happen.
A property manager is a third-party contractor who oversees and manages the daily operations of investment properties, such as condos and apartments, industrial parks, private home communities, and shopping centers.
The responsibilities of a property manager vary depending on their contract with the landlord. Below are some of the most common responsibilities of property managers.
The Responsibilities of a Property Manager
Property managers have three main roles. The first one is the management of routine tasks. These tasks are delegated to them by the property owners. Their second task is to preserve the value of the property that they manage. The third one is to generate income for the owner of the property.
Manage Routine Tasks
The following are some examples of a property manager’s routine tasks.
- Complying with landlord-tenant laws and regulations
Laws and regulations can vary from state to state, so it’s essential to keep up to date with new policies and rules. But, if you have multiple properties under your belt, this might be easier said than done.
A property manager has in-depth knowledge of state and national landlord-tenant laws and ensures that your property complies with all of them. These rules include housing regulations, habitability standards, safety codes, health regulations, and other applicable laws.
Your property manager should enforce these policies, as laid out in the lease contracts. They might also need to confront and deal with any violators.
- Supervising on-site employees
You need a team to run a rental property smoothly. So, aside from a property manager, you might also employ housekeeping, maintenance, and security staff. All of these employees will be under the supervision of your property manager, whose job is to ensure that staff are working efficiently and as expected.
Based on your property’s needs, they can hire or fire staff, as needed, set their salaries, assign them tasks, and evaluate their performance. They can coordinate and provide direction to employees so that the property owner’s standards are met. If there are contractors working on the property, it is a property manager’s task to supervise them as well.
Preserve the Property’s Value
A property manager is also responsible for preserving the value of the property. Here are some of the ways he does this.
- Handling property maintenance and repair
As a property ages, wear and tear are inevitable. So, to keep the property in the best condition as possible, a property manager will ensure that proper maintenance is conducted regularly. This includes preventative maintenance tasks like snow removal and scheduled inspections.
In addition, a property manager will also conduct repairs as they become necessary. For instance, tenants might alert the property manager about water leaks or broken appliances, and other issues that should be dealt with timely.
A property manager also ensures that a unit that has just been vacated is renovated, new paint is applied, any damages are fixed, and cleaned before a new tenant moves in. They also ensure the property’s cleanliness and visual appeal.
- Securing the property
Security is a paramount concern among property managers. A secure home—even if it’s just a rental—goes a long way to making tenants and guests feel safe. On the other hand, an unsafe space will cause tenants and guests to move away.
There are three main ways a property manager can keep the property safe. First, they can hire a security service; second, they can install security devices; and third, they create and enforce policies and procedures to ensure the safety and security of tenants and guests, especially during emergencies. They can mix and match these methods or they can use them all together, whichever makes sense for the property they are managing.
Generate Income
A property manager is also responsible for tasks that ensure that the property continues to generate income, including the following:
- Marketing the property
Whenever there are vacancies, a property manager is expected to advertise the property so that it doesn’t stay vacant for long.
This might include taking photos and listing the property on housing websites or post ads on social media. The goal is to encourage a lot of interest from many potential tenants so they have a bigger pool from which to choose from.
They can also obtain referrals from current tenants.
- Screening potential tenants
Once there are people interested in a vacant unit, a property manager must screen the applicants according to the owner’s criteria. This screening might include an employment verification, background and credit checks, and talking to references.
The property manager must also ensure that the screening process is done in compliance with laws, such as the Fair Housing Act (FHA).
The goal is to find a qualified applicant who is a trustworthy person. For instance, the new tenant should have the ability to pay their rent on time, takes care of their unit, and don’t cause problems.
- Managing evictions and move-outs
When a tenant’s lease contract has expired and they don’t plan on renewing it, a property manager must manage the move-out process. This might include confirming that the tenant has left the unit. They will also handle security deposit refunds or deductions.
The property manager will also be conducting inspections to ensure that everything is in place and there are no damages. They will have the unit cleaned and ready for a new tenant.
Sometimes, a property manager will come across a tenant who has failed his responsibilities according to the lease agreement. When this happens, it falls on the property manager to evict the tenant legally. This might mean communicating with tenants, following eviction procedures, and working closely with an attorney to make sure the eviction complies with the law.
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