Are you a property owner looking to save time and make the most out of your rental? Hiring a property manager to do the hard work for you may be the best next step. Property management companies play a vital role in ensuring the smooth operation of rental properties, from handling day-to-day tasks to navigating complex legal requirements. However, before working with a property manager, it’s vital to understand what to expect. In this blog, we'll explore the key roles and responsibilities property managers take to keep properties running efficiently and help you decide if hiring one is the right choice.
What is Property Management? 4 Types
Property management is the day-to-day maintenance and oversight of a property by a third-party contractor. Often, property managers take on responsibilities such as tenant screening and placement, rent collection, maintenance, and more, which we’ll explore further below.
There are 4 different types of property management that differing companies can handle:
1. Residential Property Management:
- Single-family homes
- Multi-family houses
- Townhouses
- Apartments
- Condominiums
- Manufactured homes
2. Commercial Property Management:
- Retail properties such as malls, gas stations, and restaurants
- Public accommodations like hotels
- Co-working environments where professionals rent spaces by day or hour
- Office properties like dentists’ offices or real estate brokerages
3. Industrial Property Management:
- Warehouses
- Distribution facilities
- Heavy manufacturing facilities like shipbuilding yards or aerospace manufacturing plants
- Light manufacturing facilities like food and beverage processing plants or furniture manufacturers
4. Special Purpose Property Management:
- Vacation rentals
- Resorts
- Schools and colleges
- Churches
- Theatres
- Sports arenas
While some companies handle all these properties, others specialize in one or two areas, such as residential and commercial management.
What to Expect From a Property Management Company: Top 5 Duties They Handle
When considering hiring a property manager, having the right expectations is crucial. While each enterprise is different, there are # primary things a property management company will do once you’ve invested in their services:
1. Market Your Property & Find Tenants
Advertising your rental and finding high-quality tenants is the most time-consuming aspect of owning a real estate investment. Fortunately, property managers are responsible for marketing your rental and finding trustworthy tenants. Often, this involves online advertising through social media, email campaigns, and rental listing services. Additionally, property managers may help you create videos or take photos of the property to ensure it makes an ideal first impression online and on other sources.
Property managers take finding tenants very seriously. They’ll vet each application, run thorough screenings and background checks, and help you choose the best renter for your space. Property managers’ assistance dramatically reduces the time it would take for you to do the same process without professional help, and they’re consistently looking out for you and your investment.
2. Abide By Local, State, & Federal Laws
Unless you’ve done extensive research, you are most likely unaware of local, state, and federal laws regarding rental properties, which can lead to lawsuits and legal trouble. Housing laws constantly change and evolve, adding to the challenge of understanding and following them. Different states and regions have vastly contrasting rules around fair housing, tenant screening, required maintenance, etc.
Property management companies are responsible for following landlord-tenant, property, and contract regulations, preventing you from getting in trouble and paying for it out of pocket. Property managers often have extensive experience and in-depth knowledge of local rules and regulations, giving you peace of mind and saving you from the stress of unintentionally violating them.
3. Perform Maintenance & Repairs
Do you want to avoid a high tenant turnover rate? You must keep your property maintained and in top condition, and property managers can help you do that. Property management companies have connections with top-rated vendors who provide maintenance and repairs for your investment at an affordable price. Property managers also run regular inspections of your space, ensuring it’s well taken care of and addressing minor issues that may become more significant problems. Since property managers prioritize speedy fixes and consistent communication with renters, having them handle maintenance requests can greatly improve your relationship with current and future tenants.
4. Collect Rent Promptly
Another helpful thing property management companies do is collect and deposit rent payments. They’ll often use online sites or portals for rent collection, making keeping track of accounting records convenient and ensuring you’re adequately paid. Property managers may also take charge of late payments and collections. With a mediator, it eases your responsibility to deal with tenants who refuse to pay or won’t communicate with you. Property managers ensure these problematic circumstances are handled efficiently and professionally, saving you time, money, and energy.
5. Overseeing Evictions & Legal Issues
Property managers can help you draft, sign, and renew a lease agreement and step in if the tenant does not respect it. For example, let’s say your lease outlines that a renter has to pay, or they’ll be evicted after a certain amount of time. If that time has lapsed and the tenant still has failed to pay, property managers will notify the renter and take care of the eviction process. Property managers can act as intermediaries between themselves and the tenant(s), whether appearing in court or issuing necessary notices. They prioritize preventing legal issues as much as possible by detailed screening, addressing renters’ concerns quickly, and helping both parties reach a satisfactory resolution.
How Much Do Property Managers Charge?
The cost of property management services depends on various factors, such as the company and location. Property managers charge about 8%–12% of the property’s monthly rental income, plus small additional fees.
Check out
this article to learn more about property management costs and determine if it’s within your budget.
What to Expect With Property Management: The Top Pros & Cons
If you’d like a property management company to do the complex parts of rental ownership for you, consider the pros and cons.
Here are a few benefits you can expect when working with a property manager:
- You’ll have more free time. One of the best things property management companies do is give you back your schedule. Without the need to screen tenants, market your property, visit your rental, and worry about fixing it up, you’ll have an excess amount of time on your hands. Whether you use that time to invest in more properties or spend time with your family, hiring a property manager allows you to create the lifestyle you want.
- They’ll upkeep the property and maintain communication with renters, preventing your relationship with tenants from turning sour.
Perhaps the biggest turnoff for tenants is the lack of communication from landlords regarding repairs. Property managers ensure quick response time and leverage their connections with several vendors who can promptly fix the issue at your rental. Property management companies often have a dedicated maintenance team or employee ready to tackle problems, keeping you in the loop during the process.
- Your property won’t be vacant for an extended period, and you’ll retain more tenants. Property managers are experts at filling vacancies, even if they’re last minute. With experience in property marketing and extensive knowledge of the local housing market, they know how to rent your property within 30 days or less. Another role of a property manager is to ensure your current tenants stay happy, which boosts the chances of them renewing the lease.
Here are a few cons you’ll need to explore before hiring a property management company:
- You’ll be charged extra fees.
The cost is a common drawback for landlords considering whether to work with a property manager. Property management companies charge a monthly percentage of the rent and additional payments, such as a leasing fee. Over time, extra fees for maintenance, cancellations, renewals, etc., can add up, so it’s crucial to ask property managers exactly what they charge before signing up with their company.
- You won’t be as involved in the rental ownership process.
When hiring a property manager, you’ll be expected to take a hands-off approach to your rental. While some investors like this, others may find it challenging to let go of control. Property managers will handle everything from minor tenant issues to day-to-day upkeep. Ensure you’re comfortable with handing your property to the professionals and hiring a trustworthy company to take charge of your investment.
Concluding Thoughts: Unlock the Full Potential of Property Managers
In conclusion, property management companies can be invaluable assets when chosen wisely. With the right partnership, your rental can reach its full potential and earn a massive profit, helping you create your desired life. If you’re searching for a trustworthy property manager in Northern Utah, Integrity Place Realty & Property Management is the company for you. Our team of property managers are experts in marketing rentals, filling them with reliable tenants, and ensuring your investment is maintained up to your standards.
We provide comprehensive property management services for
commercial
and
residential
properties in
Utah County and
Salt Lake County. Our team offers diligent property advertising, thorough tenant screening, routine maintenance, prompt rent collection, personalized support, and more.
Contact us to start your journey as a successful real estate investor and benefit from the ease of a 5-star property management experience.
