Get our carefully curated newsletter straight to your inbox.
Whether you want to hire a property manager or become one yourself, it’s helpful to understand what a property manager does. Generally, property managers do administration, operation, and maintenance work on the landlord’s behalf. Their work may also include advertising, screening tenants, and monitoring rental payments. Although the exact responsibilities may vary, property managers can take on important roles to assist property owners.
A property manager is someone who operates under the guidance of a property owner to ensure the property is maintained in accordance with the owner’s wishes. The Property managers support both residential and corporate property owners, the key is knowing what the owner’s goals are for the property.
Property managers are the ones who assist owners with things like managing vacancies and ensuring tenants pay rent on time.
New landlords often think that, in order to save money, it’s best to manage their property themselves instead of using a property manager. It’s definitely worth weighing the pros and cons based on your particular situation, especially if you have other time commitments and responsibilities.
Property management is a time-consuming process and can be a full-time job by itself. Most of the time, landlords find it hard to juggle the time it takes to effectively manage their rental property with other tasks. With this in mind, hiring property managers are always worth the investment.
There are three (3) Primary Types of Property Managers:
1) Commercial Property Managers
2) Multi Family Property Managers
3) Single Family Home Property Managers
Let’s Look at Each Type a Little Closer:
These property managers specialize in business-oriented real estate. Managers are highly efficient in running administrative-type spaces or industrial buildings.
These types of property managers invest in real estate to earn income. Besides managing the property, this type of property manager must have good customer service skills and handle adverse situations. They also perform routine work on the property.
Single family property managers work for landlords who buy homes and then turn the property into a rental to generate income. These homes are usually located in lower-income areas.
Property management doesn’t require any specific degree per se. To be successful as a property manager, you should have insight into the local real estate market in NYC, including trends in rental property. It’s also helpful to have a positive customer care attitude.
A career in property management often means a lucrative salary as well as perks like free or discounted rent should you choose to live at a property that you manage.
The primary advantage of hiring a property manager is that they do the homeowner’s “heavy lifting;” all of the tedious and time-consuming tasks associated with renting property rests on the property manager. This, in turn, frees up the owner’s time so he or she can focus on investing in other properties.
However, the downside to working with a property manager is that owners will be earning less profit since a percentage of the income will go towards paying the property manager. Having a property manager also means less facetime with tenants, which may be important given a homeowner’s connection with their property.
From attending calls about broken dishwashers to helping to protect your investment and ensure a steady income flow, property managers have a full plate of responsibilities.
We’ve Listed Some of the Top Responsibilities Here:
Having a local presence is a must when it comes to managing real estate. Hiring a property manager opens the door to other neighborhoods and cities. And the great part about that is you don’t have to be an expert on the area where you intend to purchase the property.
For example, if you’ve lived in NYC all your life, you are less likely to know what type of winter preparation and maintenance is necessary for a house in Miami. A local property manager in the Miami area would know, so it would make sense to hire a Miami-based property manager to oversee that property on your behalf.
Being well versed in real estate law, particularly as it relates to rental regulations, can be a daunting task, especially if you’re also trying to invest in properties while managing tenants. It becomes an even tougher task if you own a property in different locations. Property managers are knowledgeable of the local laws and regulations governing rental property and tenant’s rights, which will help alleviate the burden for property owners.
Having said all that, property managers also handle the basic day-to-day duties of collecting rent and addressing tenant issues. They can also stand in for the landlord if a tenant has questions about the property and the tenant’s rights.
Property management fees between 8 – 12% vary depending on property type and location. What usually doesn’t vary is the type of fees assessed for property management services.
Here are Some of the Most Common Fees:
This includes management of the day-to-day operations of the property like communicating with tenants and collecting rent.
Most of the time, property managers charge a fee when a tenant signs a new lease; this fee covers the costs associated with property advertisement, tenant screening, and the drafting and execution of legal agreements.
Sometimes property managers omit this fee, but some may charge a fee when a current tenant renews their lease agreement.
Most of the time, property managers charge a flat fee for managing repairs at the rental property.
There’s nothing wrong with asking a property manager how much they will charge before you hire them. Get quotes from different companies and compare which has the best rates for the services provided.