What Duties Does A Property Management Company Take Care Of?
Property managers are hired by the owner to manage the operation , maintenance and administration of property rentals. Their work, among many other tasks, includes marketing rentals and finding tenants, ensuring rental rates are competitive while covering taxes and overheads, collecting rents and complying with rental laws.
Their exact responsibilities will vary depending on the type of property being managed, the amount paid and the terms of the management contract. There are some important roles that property managers can play in helping rental property owners.
What's the Property Manager?
Property managers are people specializing in the provision of rental services under the guidance given by the owner — whether the objectives are financial or based on the provision of attractive living conditions, or both.
Guidance may take different forms — corporate property owners may issue mission statements and vision statements on their properties, while individual owners may provide verbal guidance on their property objectives.
The manager ensures that the property is occupied by the responsible tenants, that payments are received on time, that budgets are followed and that the rent is properly maintained.
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What do Property Managers Do?
Responsibilities of the property manager may vary widely, but some tasks are common across property types. In this article, we will discuss six common property management responsibilities, from collecting rent to finding tenants.
1. Rent Responsibility
Property managers are often responsible for dealing with rental issues. They often agree to the initial rent level of the tenants. This requires an understanding of the market where the property is located and the type of clientele that they would like to attract. Property managers are also collecting the rent. They are responsible for ensuring optimal cash flow by setting a firm date for collection of rents and strictly applying late penalties.It is also common for property managers to adjust their rent. They may reduce rent if they feel it is necessary, but more often, managers increase rent by a predetermined percentage each year, as stipulated by municipal and provincial legislation.
2. Screening of Tenants
Property managers should be screened by tenants as they apply for a place in their building. The screening process may differ, but often involves carrying out credit checks and checking references and/or proof of employment.
3. Attraction of tenants
Any vacancies are expected to be filled by the property manager, and it is their role to find new tenants who are fit for the building. They should be prepared to advertise the space effectively and meet with potential tenants, showing them the features of the apartment.
4. Maintenance and Repair
The property manager is responsible for keeping the property in a safe and inhabitable condition. This includes maintenance , repair and updating of facilities such as laundry and parking. Property managers must either be able to perform routine maintenance, such as landscaping, pest removal, leak control and trash removal, or hire a person to perform these tasks on a regular basis. Similarly, when repairs or renovations are needed, property managers must either fix the issues themselves or hire someone to do the work. This means that property managers generally have a large network of reliable contractors, plumbers, carpenters and electricians.
5. Knowledge of Landlord-Tenant Law
Property managers are often the first line of contact in the event of an eviction or dispute, as well as in the general legal functioning of a rental property. In this role, property managers need to know the legal processes for the screening of tenants, handling security deposits, termination of leases, eviction, security compliance, and more. A good property manager will have an in-depth understanding of the law on landlords and will be able to carry out their responsibilities in the way these laws dictate.
6. Management of the budget and maintenance of financial records
As the day-to-day activity supervisor, property managers are also responsible for maintaining the building budget and keeping detailed records. Managers are often given a set budget for the building they need to operate within, and it is up to them to use their discretion to make improvements, order repairs and maintain an emergency fund. The property manager may also be asked to file taxes on the property or to assist the owner during the tax season. They should also keep a thorough record of the functioning of the property. This includes all revenues and expenses and records of complaints, repairs, leases, maintenance requests, and insurance costs. They should also have complete records of all building inspections and rent collections.