Owning a property is one of the most significant investments with the highest Return on Investment. As a property investor, there are times when you may have tenants leasing or renting your property to live in or conduct business. According to statistics from the Real Estate Institute of Australia, many property investors contract property managers’ services.
Property managers are also referred to as agents or tenancy managers. Their primary duty is to manage the daily obligations of a landlord. Property management is a tedious and time-consuming endeavor that can be difficult to execute if you have other commitments. However, having a property manager can help you spare time and energy, albeit at a reasonable cost.
Here are some of the duties of a property manager.
Responsibilities of a Property Manager
Determine the rent price
Choosing a rental price can be an uphill task for property investors, especially those new to the industry. However, a property manager can help set an ideal price that is attractive to tenants and profitable to the landlord. Property managers leverage property market data based on the surrounding area averages, location, utilities, and features within the property to settle on an ideal rent price.
Prepare vacant units
Having vacant units in an investment property leads to losses. The property manager is responsible for cleaning, repairing, and maintaining the unit until a potential client arrives. Agents can also provide insight into revamping the units to make them more attractive to potential tenants.
Screen and approve tenants
Property managers are also tasked with screening and interviewing all prospective tenants. Most property management firms have enough staffing to source and screen ideal tenants quickly. The manager does a thorough background check on tenants before approving their applications. Property managers are also knowledgeable on laws related to the real estate industry, especially rentals. This way, they can easily filter out an applicant who doesn’t meet the requirements.
Draft lease agreements
The agent is responsible for drafting the lease terms to protect the property and your interests. The lease agreement should stipulate what’s expected of the tenant and what to expect from the owner and agent. The lease agreement should also include late rent fees, security deposits, and the penalties of not honoring the agreement.
Collect and revise rent prices
Tenancy managers are responsible for adjusting and collecting the rent when it’s due. Agents are also tasked with the responsibility of collecting and enforcing late rent fees on the tenants. As discussed before, agents can set an ideal rent price. This means they can lower or increase the rent prices based on prevailing market conditions.
Organize property maintenance and repairs
As a property investor, it may be difficult to know about all the repairs and maintenance issues related to the property. However, property managers are quite knowledgeable about property maintenance and repairs. This means they are responsible for maintaining the normal operations of the property and keeping them healthy ad habitable. These professionals are also responsible for preventive maintenance duties such as repainting, cleaning, and drainage inspection.
Advertise rental vacancies
Marketing vacant units are one of the key roles of an agent. Leveraging their industry knowledge and experience, they can choose the appropriate location, time, and channel to market the vacant units. Their primary role is to attract prospective tenants who meet the criteria needed.
Address tenant complaints
A tenant building never goes without a few conflicts here and there. If a tenant quarrels with another tenant, it’s the agent’s responsibility to step in to mediate and resolve the issues. They also attend to complaints regarding the property.
Supervise on-site employees
During maintenance, cleaning, or repair, the property manager supervises on-site employees. They also oversee the conduct and performance of the security personnel or concierge. The agent ensures employees work efficiently. Aside from supervising the employees, they recruit and fire them according to the law.
Ensure the property is legally compliant
Legal compliance ranges from observing the building code to ensuring all the taxes are paid on time. The property manager must ensure the property adheres to all laws regarding property ownership, both locally and at federal levels. At times, they may need to file taxes for the landlord.
Several property management companies, such as Shield Management, are dedicated to easing the task of property ownership. By taking over your responsibilities as a landlord, you can now concentrate on other tasks and commitments.
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.