Landlords who hire a property manager heave a sigh of relief, knowing that the many burdens of being a property owner will now be managed by a professional.
Hiring a property manager takes much time, responsibility, and stress off the owner’s shoulders, allowing them to pursue other endeavors.
However, before signing on the dotted line, a property owner should know what they are getting into. A thorough understanding of what to expect from their property manager and what it will cost is essential before committing to an agreement.
Here are five typical responsibilities of property managers that should be included in a contract:
Advertising
Marketing is among the single most vital tasks a property manager must perform to attract potential tenants to a landlord’s rental home.
Sound marketing practices include top-quality photographs and well-written descriptions that make the property attractive to potential renters.
Agents should know which websites and other media are necessary to reach a significant pool of would-be tenants.
There are many property management companies that utilize various marketing platforms to advertise the residential properties they manage, reaching local renters and those who might be further afield.
Rental agency Evernest has a team of qualified professionals operating out of four primary Colorado cities: Denver, Colorado Springs, Fort Collins, and Boulder.
Most qualified Denver property managers include marketing in their rental agreements with landlords. It is one of a property manager’s key responsibilities. It also has an established presence in Tennessee, Arkansas, and Georgia.
Another vital property management function is tenant screening to find the best match for a landlord’s rental home.
Screening allows a property manager to separate the wheat from the chaff, eliminating tenant applicants with poor records who would pose a substantial risk to the landlord if offered a lease.
Screening processes include various steps, such as verifying a prospective renter’s employment and salary, reviewing their credit history, and contacting previous landlords and other references they supply on their application form.
When a rental homeowner tries doing this alone, it is easy for them to miss critical information informing their decision to accept an application.
Rental companies have easy access to an applicant’s credit history, a sound predictor of their future behavior toward debt, such as rent payments.
Additionally, a review of an applicant’s debt status allows a property manager to determine if they can afford to pay their rent.
These processes help an agent find an ideal tenant who pays on time, behaves responsibly, looks after the rental, and does not cause undue damage or trouble.
Lease agreement
A property manager is responsible for drawing up a lease agreement with their selected tenant. This contract should stipulate a lessee’s responsibilities, such as payment timeframes, termination notice periods, consequences for non-compliance, and other conditions for renting the property.
A property manager must ensure that all lease agreement terms are enforced for their duration, including monthly rent collection.
In some cases, a rental agreement ends in an eviction process. Depending on the property management agreement, an agent should deal with this matter, using their expertise to expedite and complete it.
When a tenant moves in or out, a property manager must conduct a full inspection of the premises to note any damages or necessary repairs. Their report should be comprehensive and submitted to the landlord for review.
Repairs and maintenance
Maintenance remains an ongoing process for any rental property and should be performed before minor problems become significant issues that prevent tenants from occupying the house.
When a rental property manager is responsible for such maintenance tasks as per their agreement with the landlord, they must source trusted contractors to perform them.
Property managers have a network of reputable contractors who manage repairs and maintenance for them.
House repairs may become necessary despite the property manager’s best efforts to stay on top of maintenance issues.
Storm damage or unforeseen issues could arise, and property managers must be equipped to deal with them.
A landlord’s agreement with a property manager should be specific about what repairs and maintenance issues it covers and how payments for them are structured.
Recordkeeping
Property managers keep detailed records about each rental they control, including copies of all agreements with the landlord and tenants. Any results from their screening efforts should also form part of their paperwork.
They should complete monthly reports for their clients, tracking rental payments and any outgoing expenses, such as repairs and maintenance.
Property management records are vital for landlords when they file their taxes or they plan any future property transaction. Keeping the documentation in top shape is beneficial to all the parties involved.
Incident reports, late payment records, and other complaints should be kept on file as they could form an essential basis for a successful eviction.
Property managers need instant access to such documents to maintain control over the rental relationship.