We’re seeing a massive exodus away from homeownership and towards renting. That migration is great news for prospective real estate investors that are interested in getting started as a landlord.
As you go through the process of investing in properties, one of the first line-items you’ll consider is whether or not you want to bring on a property manager. As you mull that over, you might even ask yourself, “What is a property management company responsible for?”
Property managers bring a wide array of value to your real estate portfolio. Below, we go over a few core responsibilities you can expect out of your management company, should you choose to bring one on.
They Enable You to Invest Remotely
It used to be that real estate investors were limited to their immediate area. With the advent of property managers, those barriers have shattered.
The key takeaway from the what is a property management company responsible for question is that they work mostly autonomously from you. That means they can control your properties in markets far away without your intervention beyond the occasional touch-base.
Set Rent Rates
Rent rates fluctuate every few months depending on what’s going on in a community and across the country. Property managers have their finger on the pulse of where rental rates are trending and are sure to price your unit just high enough that you’re collecting as much money as possible and just low enough that you’re able to avoid vacancy.
Managing the process of setting rent rates on your own is a cumbersome one that requires a ton of research. Outsourcing the responsibility to property managers saves you time and generates additional income.
Deal With Vacancy
When one of your units empties, you’ll start losing money. Knowing that, property managers will immediately spring into action the moment a tenant puts in their notice so your unit can be turned over as quickly as possible.
Property management will market your unit, take applications, screen candidates, and ultimately get your unit filled all without you needing to lift a finger!
Respond to Maintenance Requests
It’s inevitable that your unit will require occasional maintenance. When those requests come in, your property manager will be there to field standard requests during business hours and emergency requests after hours.
How quickly you manage maintenance requests will have a large impact on how easily you retain tenants. The speed in which you deal with requests could also have legal implications so having someone in your corner to get things done quickly can be a huge help.
Hire Contractors
Do your units need a fresh coat of paint? Do they need pipework done?
When those capital expenditures come up every 5, 10, 20 years, your property manager will have a network of local contractors at the ready that they work with. Those contractors will be reliable, affordable, and can be counted on to get a job done right!
If you’ve ever managed contractors before, you know first-hand that organizing their work can be a serious headache. Knowing a person that has contractors waiting in the wings that you can trust saves you a ton of problems.
Collect Rent
There’s nothing more gratifying as a landlord than collecting rent checks at the end of the month. That’s why one of the most integral what is a property management company responsible for tasks is to ensure that everyone that’s occupying your rental properties pays on time.
Property managers will pick up rent checks. They will assess late fees. They’ll even send out late payment reminders to make sure your money lands in your hands. At this stage, they’ll also pull out their management commission which you will have negotiated with them in advance.
Property management commissions vary based on how many rental units you have them managing.
Manage Evictions
One of the worst parts of owning rental properties is dealing with delinquency. Delinquent rent creates conditions where you’re not getting paid. Your property may also be getting abused which could require costly legal intervention.
When evictions need to take place, your property manager will know exactly how the process needs to be managed in their locality. They’ll file the proper notice with tenants, contact authorities, and of course, keep you in the loop during every stage of the process.
Keep Your Property in Compliance
Renters’ rights laws are ever-changing. Often, changes move things away from being landlord favorable and towards supporting tenants. As these laws change, it’s imperative that your property remains in compliance with state and local guidelines.
If it doesn’t, renters can withhold rent and may even be able to sue.
Property managers know all the ins and outs of the evolving renter landscape. They’ll use that knowledge to work with you on making sure every inch of your property upholds your obligations.
Have More What Is a Property Management Company Responsible for Questions?
The what is a property management company responsible for items we’ve discussed are by no means comprehensive. Several property managers perform special duties associated with the unique qualities of their areas that you may want to explore further.
To that end, if you still find yourself wondering whether or not a property manager is right for you, we recommend calling managers in your investment area. They’ll be able to tell you exactly what they do and for how much.
Would you like more topical information on property management tasks? If so, feel free to check out additional information in our real estate focused blog.
