Hiring a property management company means a property owner feels safe in the knowledge that their property is well taken care of. It is also the most reliable way to get trustworthy and dependable tenants who pay their monthly rent on time and cause no damages.
But a property management company is much more than that.
By handing your property’s keys to a property management company, you get the most precious gift of all: peace of mind.
You ensure that everything related to your property is not your responsibility anymore. Any repairs or tenant complaints are handled by the company. So are damages to the property. And even finding new tenants. None of this demands your time or attention. It is an arrangement that benefits your properties and yourself, especially if you are an investment property owner.
So, what are the responsibilities and duties of a property management company?
1: Make sure the property is appealing
Once a property management company is handed over a property, they will make sure the property is appealing and in good condition.
They may suggest repairs, property upgrades, and improvements that make the property more enticing. A kitchen or bathroom remodeling may be an initial unforeseen expense, but such improvements can pay for themselves.
Similarly, a freshly-painted, clean property is bound to attract better tenants and help you get higher rent.
A proper management company knows the local rental market and is aware of the going rental rates. They also know the competition and how crowded—or not—the local market is. The suggestions they make will be based on experience and knowledge; not anecdotes.
2. Finding tenants
Once the property has been cleaned, repaired, and any remodeling has finished, the next step is to find trustworthy and dependable tenants.
A property management company will run background checks and scrutinize the tenants to see if they are a match to the property. They will select the best tenants for you.
Tenant duties, obligations, and rights
The property manager will show tenants your property and inform them of any duties such as lawn care and any other obligations they may have regarding the property. The manager will answer questions and define obligations and rights, such as parking spaces or whether pets are allowed on the property.
The property manager will also clarify which responsibility belongs to the owner and which to the tenant. For instance, lawn care can be a duty that falls on tenants. Alternatively, the property owner might have a gardening crew that takes care of it.
Several small details need to be smoothed over to avoid any misunderstandings mid-lease.
Setting the rent
The property management company will also help you set the rent. Since they know how the local rental market is performing, property managers know the rent level that is appropriate for every property.
They will help set a rent that is fair to the tenants but is also profitable to the property owner.
3. Maintaining the property
Once the tenants have rented the property, they will be in direct communication with the property management instead of the owner.
This takes a huge weight off the shoulders of property owners and offers peace of mind, especially for investment owners who have to handle several properties.
Repairs and maintenance
Property management services include repairs and maintenance. The property managers are the ones responsible for fixing problems: a leaky tap, fixing broken appliances, plumbing problems, cleaning HVAC filters, and any other property repair or maintenance is their problem; not the owner’s.
Fixing problems promptly and adequately keeps tenants pleased and makes sure they stay for a longer time.
Manage tenant complaints
Responding to tenant complaints can be time-consuming.
A property management company knows how to deal with complaints and respond to them timely and competently. The property manager will know which complaints are serious and require something done immediately and which ones are trivial.
The right maintenance crews
Property management companies usually have repair teams and experts such as plumbers, electricians, and other technicians.
These teams can perform any repairs rapidly and at a highly competitive cost. It is the company’s responsibility to fix problems and they know the best people to do just that.
Periodic inspections
A property manager is allowed to make periodic inspections to make sure the property is well taken care of and that there are no lease violations.
The manager will look around and detect any problems or questionable practices. They will enforce the lease’s terms.
4. Collecting rent
A big part of a property management duties and responsibilities is to collect rent from the tenants. The manager will make sure the rent is collected on time.
Defaulting tenants
Sometimes, tenants fail to pay their rent. Defaulting tenants need to be reminded of their duties.
A property manager can establish a payment timeline for defaulted rents, always in agreement with the property owner.
If there is no other way, the property manager could instigate eviction procedures on your behalf, should defaulting tenants further delay payment.
Multiple tenants
Collecting rent is particularly complicated if there are multiple tenants, each one paying a portion of the rent. The management company will keep records of all payments and ensure prompt payment.
Adjusting rent
Property owners should be getting the most out of their property.
The property manager knows when to adjust rent according to the local property market. If the local rental market is expanding, the property owner should get more out of their property. Increasing the rent could be a good step toward increased profitability.
5. Managing the property’s finances
The property management company is responsible for keeping financial records about the rental property.
They need to keep records of transactions related to the property and cash flow predictions. They also have to analyze the profitability of the property, the revenue, and expenses and make financial forecasts for the future.
The managing company also needs to pencil in any unexpected expense that could make a dent on the cash flow predictions.
Accounting, budgeting, and rent collection are crucial responsibilities of the managing company. The financial records offer a clear picture of the property’s financial performance.
Insurance
The property manager will also make sure the property owner is insured again several risks, such as building insurance, property owner’s liability, loss-of-rent insurance, and accidental damage cover.
6. Limit vacancies
The property management company is responsible for limiting vacancies.
The shorter the vacancies, the more income the property owner will be getting. Therefore, a property needs to stay empty for as little time as possible.
Preparing the property for the next tenants
Once the previous tenants have left, the property manager will collect the keys and make sure the property is inspected, cleaned, and restored.
If any repairs are necessary, they will see to it, alongside any improvements, always in agreement with the property owner.
Property management for investment properties
Investment properties are real estate properties purchased explicitly to earn a return on the investment through rental income.
While renting a property can be time-consuming, it is even more demanding if one owner needs to manage several rental properties.
Handing over the property management to a reputable property management company is the perfect solution for investment property owners. The managers will take all the worries away and let owners enjoy their life—and extra income.
A property management company handles all issues pertaining to a rental property. They find the right tenants, make repairs and improvements, fix problems, collect rent, evict defaulting tenants, and make sure vacancies are as limited as possible.
Property owners should be getting the most out of their property. Hiring a property management company is the best way to ensure this: their property gives them a financial return without the hassle of managing its operation on a day-to-day basis.
Are you an investment property owner? Contact Keyrenter St. Charles Property Management and take the hassle out of managing your investment properties. That’s a guarantee!