May 1, 2023 | Sexton Real Estate Group
Investing in property can be a lucrative endeavor. However, managing a property requires time, effort, and expertise. Many property owners find it challenging to balance the demands of managing their property with their personal and professional commitments. Property management companies offer an effective solution to this challenge.
A property management company can handle various aspects of managing a property, including marketing, tenant screening, rent collection, maintenance, and repairs. With the help of a reputable property management company, property owners can focus on their primary responsibilities while ensuring their property remains profitable and well-maintained.
In this article, we will explore the concept of property management and the role of property managers. We will also discuss the importance of attracting and retaining quality tenants, maintenance and repairs, rent collection and arrears management, tenancy deposits, lease renewals, and evictions. Additionally, we will provide a guide on how to choose the best property management company.
What Is Property Management?
Property management is the operation, control, and oversight of real estate. Property management includes various tasks, such as marketing and promotion, tenant screening and selection, lease preparation and execution, rent collection, maintenance and repairs, and evictions.
Property management companies are responsible for ensuring that properties are profitable and well-maintained while adhering to local, state, and federal laws and regulations. Property management companies also act as intermediaries between property owners and tenants.
What Does a Property Manager Do?
A property manager’s primary responsibility is to manage properties on behalf of the property owner. A property manager handles various tasks, including:
1. Attracting and Retaining Quality Tenants
One of the most important parts of a property manager’s role is finding the right tenants. Finding and keeping good tenants can mean fewer issues, a steady rental income, and fewer costly void periods. Property managers handle various tasks related to tenant selection, such as marketing and promotions, rental property tours, tenant screening and credit checks, verification of right to rent, lease agreement and property inventory, tenant communication, and management.
- Marketing and Promotions
Property managers use various marketing and promotional strategies to attract potential tenants. They may list properties on online marketplaces, such as Zillow and Trulia, or use traditional marketing methods, such as print ads and signage. Property managers may also use social media platforms, such as Facebook and Twitter, to reach potential tenants.
- Rental Property Tours
Property managers conduct rental property tours to showcase properties to potential tenants. They may conduct virtual tours or in-person tours, depending on the property owner’s preferences and local regulations.
- Tenant Screening and Credit Checks
Tenant screening and credit checks are essential to ensuring that the property owner gets reliable and responsible tenants. Property managers use various screening tools, such as criminal background checks, employment verification, and credit checks, to assess potential tenants’ suitability.
- Verification of Right to Rent
Property managers must verify that tenants have the legal right to rent in the United States. They may ask for a passport, driver’s license, or other documentation to confirm tenants’ identities.
- Lease Agreement and Property Inventory
Once a tenant is selected, property managers prepare a lease agreement that outlines the terms and conditions of the rental. The lease agreement includes details, such as the monthly rent, lease term, security deposit, and pet policy. Property managers may also conduct a property inventory to document the condition of the property before the tenant moves in.
- Tenant Communication and Management
Property managers are responsible for managing tenant relations, including addressing concerns and handling complaints. They may also handle tenant move-ins and move-outs and ensure that tenants comply with the terms of the lease agreement.
2. Maintenance and Repairs
Property managers are responsible for ensuring that properties are well-maintained and in good condition. They handle various maintenance and repair tasks, such as managing tradespeople, coordinating with tenants, conducting property inspections, and evaluations.
- Managing Tradespeople
Property managers oversee various tradespeople, such as electricians, plumbers, and maintenance workers, to ensure that the property remains in good condition. They also coordinate repairs and maintenance with tenants and ensure that tradespeople are properly licensed and insured.
- Tenant Relations and Coordination
Property managers handle tenant concerns and complaints related to maintenance and repairs. They coordinate repairs and maintenance with tenants and tradespeople and ensure that repairs are completed in a timely and efficient manner.
- Property Inspections and Evaluations
Property managers conduct regular property inspections and evaluations to identify maintenance and repair needs. They also ensure that properties comply with local, state, and federal regulations related to safety, sanitation, and habitability.
3. Rent Collection and Arrears Management
Property managers are responsible for collecting rent and managing arrears. They handle various tasks related to rent collection, such as setting rent prices, collecting rent payments, and managing late payments and arrears.
- Rent Collection
Property managers set rent prices based on market conditions, location, and property features. They collect rent payments on behalf of the property owner and ensure that rent is paid on time and in full.
- Arrears Management
Property managers manage late payments and arrears and ensure that tenants comply with the terms of the lease agreement. They may send reminders, issue warnings, or initiate eviction proceedings if necessary.
4. Tenancy Deposits
Property managers are responsible for managing tenancy deposits. They handle various tasks related to tenancy deposits, such as setting deposit limits, protecting tenant deposits, and managing deposit refunds.
- Limits on Security Deposits
Property managers must comply with local, state, and federal laws and regulations related to tenancy deposits. They must set deposit limits and protect tenant deposits in accordance with these laws.
- Protection of Tenant Deposits
Property managers must protect tenant deposits by placing them in a secure account and providing tenants with information about their deposit protection. They must also manage deposit refunds and deductions in accordance with the terms of the lease agreement.
5. Lease Renewals and Evictions
Property managers are responsible for managing lease renewals and evictions. They handle various tasks related to lease renewals and evictions, such as negotiating lease renewals, handling lease terminations, and initiating eviction proceedings if necessary.
- Lease Renewals
Property managers negotiate lease renewals on behalf of the property owner and ensure that tenants comply with the terms of the lease agreement. They may also conduct property inspections and evaluations before renewing leases.
Property managers initiate eviction proceedings if tenants fail to comply with the terms of the lease agreement. They must comply with local, state, and federal laws and regulations related to evictions and ensure that eviction proceedings are handled in a legal and ethical manner.
How to Choose the Best Property Management Company
Choosing the best property management company is essential to ensuring that your property remains profitable and well-maintained. Here are some tips to help you choose the best property management company:
- Discover a Nearby Business: Search for property management companies near your property. Look for businesses with a good reputation and a strong local presence.
- Seek Advice from Others: Ask other property owners for recommendations. Look for online reviews and testimonials to get an idea of the company’s reputation.
- Review Feedback on the Web: Check online review sites, such as Yelp and Google, for feedback from previous clients. Look for trends in feedback, such as complaints about customer service or maintenance issues.
- Inquire Regarding Offered Services: Ask about the services offered by the property management company. Look for companies that offer comprehensive services, such as tenant screening, rent collection, and maintenance and repair.
- Arrange for an Appointment: Schedule an appointment with the property management company to discuss your needs and expectations. Use this opportunity to ask questions and get a better understanding of how the company operates.
- Familiarize Yourself with Pricing and Charges: Ask about pricing and charges for services offered by the property management company. Look for transparent pricing structures and avoid companies that charge hidden fees.
- Question the Tenant Screening Procedure: Ask about the tenant screening procedure used by the property management company. Look for companies that conduct thorough background checks and credit checks to ensure that tenants are reliable and responsible.
- Locate a Company with Proper Licensing and Insurance: Make sure that the property management company is properly licensed and insured. Look for companies that are members of professional organizations, such as the National Association of Residential Property Managers (NARPM) or the Institute of Real Estate Management (IREM).
- Give Preference to Specialized Expertise: Choose a property management company with specialized expertise in managing properties similar to yours. Look for companies with experience managing properties in your area and with similar features and amenities.
- Inquire About Housing Regulations: Ask about the property management company’s knowledge of local, state, and federal housing regulations. Look for companies that stay up-to-date on regulatory changes and comply with all relevant laws and regulations.
- Carefully Examine the Property Management Contract: Read the property management contract carefully before signing. Look for clear terms and conditions, including fees, responsibilities, and termination clauses. Seek legal advice if necessary to ensure that the contract is fair and legally binding.
Our Final Thoughts
Finding the best property management company is essential to ensuring that your property remains profitable and well-maintained. Property managers handle a wide range of tasks, including tenant screening, maintenance and repair, rent collection, and lease renewals and evictions. When choosing a property management company, look for companies with a good reputation, transparent pricing structures, and specialized expertise in managing properties similar to yours. Make sure that the company is properly licensed and insured and complies with all relevant housing regulations. Finally, carefully examine the property management contract before signing to ensure that it is fair and legally binding. With these tips in mind, you can find the best property management company for your needs and ensure that your property remains a profitable investment.
Are You Looking for an Amazing Property Management Resource in Northern California?
Welcome to the Sexton Group Real Estate | Property Management, Northern California’s premier property management company! Our boutique real estate company specializes in residential sales for San Francisco Bay Area properties. With three local offices strategically located in Berkeley, Oakland, and Lafayette, we are perfectly positioned to serve our clients in these vibrant communities.
What sets us apart from other property management companies is our deep understanding of the unique charm and character of each area we serve. In Berkeley, we embody the essence of the city’s eclectic and artistic culture. In Oakland, we honor the city’s rich history and diverse community. And in Lafayette, we embrace the family-oriented vibe and community-centric atmosphere.
At the Sexton Group, we pride ourselves on our team of amazing real estate agents. With over 25 years of combined experience in the industry, we have the expertise to help you buy or sell your dream home in Contra Costa or Alameda County. And with a relaxed, down-to-earth approach, we make the process enjoyable and stress-free.