What Does a Property Manager Do for My Rental?
A good property manager for your rental makes the difference between a passive income experience and a second job. When you hire a property manager, you essentially don’t have to do anything except wait for your rent deposit each month. Of course, the key is hiring a quality property manager. When you do, you can look forward to all or most of the following services.
Recommends Rental Rates
The property manager is an expert in the rental market in your area. One of their services is to recommend an appropriate rental rate based on the property features and condition, as well as on the local rental market. They do this based on statistical reports, personal experience, and industry standards. Done well, the rent will be set at a comfortable level for both you and your future tenant.
Markets Your Property
The property manager will also help to “sell” your rental to prospective tenants. This activity helps ensure the lowest vacancy rates possible. They may market your rental using one or a combination of their company website, online real estate videos, or online paid ads. They may also place physical signs on the property or in the neighborhood. In any case, with a property manager, you’ll never have to market your property for rent.
Vets Candidates and Executes Leases
When applicants respond to the marketing efforts, your property manager will vet candidates for you. They may perform a background check, verify employment and salary and make personal, non-biased judgments as to the suitability of any certain candidate. You’ll never have to sift through tenant applications or interview anyone for your rental. Once a good candidate is found, the property manager executes the lease, obtaining all the appropriate signatures.
Ensures Legal Compliance
Property managers stay up to date on rental property legal regulations in the state of your rental property. These legal requirements may occasionally change from year to year, but your property manager will always ensure that you—and they—are in total legal compliance. This protects you against claims and government legal action against you.
Collects Rent and Raises Rent
The property manager takes care of collecting the rent payment each month from your tenant. They may do this in person, through the mail or via an online portal. If rent is late, the property manager follows up with the tenant. If the lease is up, the property manager determines if a rent increase is appropriate and takes the necessary steps to enact it. The property manager also transfers the monthly paid rent to the landlord, either through the mail or via direct deposit.
Acts as A Buffer
Your property manager is the liaison between you and your tenant. Whenever you want to communicate with your tenant or your tenant has something to relay to you, the property manager speaks for each of you. In many cases, the landlord never says one direct word to the tenant and never lays eyes on the tenant. Often the tenant doesn’t even have the landlord’s telephone number or mailing address. They are forced to communicate through the property manager. Essentially, the property manager acts as a solid buffer that shelters you from all phone calls, letters, maintenance requests, comments or nuisances that the tenant may initiate.
Operates an Efficient Communication Hub
With the property manager in place, message handling among the tenant, landlord, and property management company is efficient and reliable. When messages are received, the property manager relays only the relevant information to the landlord or tenant and takes care of the rest. This way, maintenance requests are not sent to the landlord, only to be forwarded to the property management company. Rent payment confirmation requests from the landlord don’t go straight to the tenant; they go through the property manager who gives the landlord the requested information. The property management company operates an efficient communication hub that makes everyone feel their emails and phone calls are being paid attention to and acted upon.
Keeps Record of Communication
Communication records are an important aspect of any business, including the business of rental property. The property manager maintains an accurate and thorough record of all communication regarding your rental property. There’s a record of every telephone call, email and letter having to do with your rental investment. This is important for tax purposes and any future legal actions, as well as keeping track of how responsive your property manager is.
Provides Annual or Monthly Reporting
In addition to communication recordkeeping, your property manager provides annual or monthly reports. These reports include a detailed accounting of rents received, expenses, receipts, lease records, vacancy reports, inspection reports and more. You may access these reports via an online portal from your property manager’s website, or they may email or mail them to you at the end of each fiscal year or on a monthly basis. These will be invaluable for you as you prepare your list of tax deductions for your rental property.
Performs Routine Maintenance
The property manager is also in charge of routine maintenance for the rental. Depending on the lease terms, this routine maintenance may include things like lawn cutting, weeding, trimming, lawn treatments, changing furnace filters, etc. In some cases tenants do these things; in others the landlord. When you have a property manager, you never have to concern yourself with routine maintenance.
Oversees Emergency Repairs
When the pipes burst, or the toilet overflows or the roof springs a leak, the property manager steps up to the plate. Emergency repairs are taken care of expeditiously to preserve the integrity of the property as well as tenant relations. As the landlord, you won’t get the midnight phone call, but you will be apprised of the situation, as well as any related costs.
In the unfortunate case of a necessary eviction, the property manager will handle it in accordance with national and state laws. All the notifications and legal paperwork filings will be done by the property management company. When necessary, even court appearances can be done by the property manager. As the landlord, you will be notified of the situation, but you don’t have to be personally involved.
Remember, all these services can be enjoyed only when you choose a quality property manager for your rental. Many people and companies may claim to be property managers, but not all of them operate quality and ethical businesses. For information about the property management services at American Real Estate Investments, please contact us today.