Property management is the day-to-day handling of all the tasks required to oversee the real estate. Typically, property management is conducted by third parties who oversee real estate for rental property owners.
Some property managers handle multiple rental properties for their clients, while others take care of one property that may have one or multiple units. Essentially, a property manager acts as the middle man between the tenant and the real estate investor.
Property management professionals are contractors, and they collect rent, process maintenance services, deal with difficult tenants, manage leases, hire contractors to do maintenance work, and do everything else landlords need. Property management companies
Do I Need a Property Manager?
A property management firm is responsible for every task associated with the daily operations of owning vacation rentals, single-family homes being rented out, commercial real estate, or other income property. Thus, if you feel like you’ve been running behind on everything related to your business, you might need a property manager and not realize it.
Real estate investors typically hire property management businesses to manage their rental units or other income property. Many landlords also appreciate that property managers maintain regular office hours, providing current and prospective tenants a place to go to take care of their business related to renting the property.
In short, hiring property managers probably makes sense for landlords who need help keeping up with the daily operations of managing property, don’t know everything there is to know about managing rental properties, and don’t want the headaches of dealing with tenants and keeping up with regular maintenance.
What Does a Property Management Company Do?
The responsibilities of property management firms include every task you can think of pertaining to leasing and managing rental properties. A typical property management agreement covers all the services a landlord could possibly need. Property managers provide the services landlords need to manage their properties.
A rental management firm provides services that landlords find significant value in, such as these:
Collecting rent is a key part of being a property manager, and maintaining an office with regular hours will make collecting payments much easier. Many tenants want to be able to drop in to take a check to their landlord, but landlords often don’t want their tenant to come by their residence to drop off a check. Property management companies should be able to handle money for their clients, maintaining a safe place to keep cash and checks on hand and making regular trips to the bank to deposit money.
Regular Property Maintenance
Many property management companies will handle maintenance requests through online property management software, vastly simplifying a task that could otherwise be difficult for owners trying to manage their real property on their own.
In addition to dealing with requests, a property manager will often have a regular maintenance schedule so that they can be proactive with renters, potentially preventing problems before they occur.
Dealing with Defaulters
Defaulting tenants are difficult to deal with, especially if they go all the way to eviction. Every region has different rules and regulations that a landlord must follow if they have to evict someone from their rental property, so it’s essential that they follow these laws.
Property management companies know the ins and outs of this process and how to follow best practices for dealing with these troublesome tenants.
The easiest way to find great tenants for your properties is to hire a skilled property manager who knows all the best places to find renters who would be interested in your rental units. Sometimes quality tenants can be difficult to find, but part of managing rental properties is listing them in all the right places and then screening applicants carefully.
Anyone whose job involves trying to manage properties must be an excellent bookkeeper. From rent collection and recording income on each lease to maintenance costs, taxes, and every other expense involved in running a business, you must ensure that everything is accounted for accurately.
Property managers will ensure that this is done professionally and correctly and will alert you of any cash flow problems. They will also provide insight into getting the best price on every lease so that you can make the most income on all your properties.
Why Use a Property Management Company?
Property management companies ensure that every aspect of your business runs smoothly.
A good property management company is worth all the money you invest. Here are some of the reasons many owners hire a property manager:
Their Time is Limited
If you own property as part of your asset management strategy, you probably have a business consisting of multiple rental units. However, even if you only own a single rental property, you may still find yourself running out of time to get everything done and provide all the services every tenant needs.
They Can Afford It
The best property management companies provide excellent value for the money, making hiring a property manager very affordable. A property management company that offers you their best price is worth every penny because they take care of every problem your renters might have, including those that occur after hours!
Lots of Properties
Providing management for lots of properties takes up more time than most people have. If you have to field calls from a large number of tenants in a single day, especially overnight, you’ll find yourself running ragged. However, the services provided by a qualified property management company will keep you covered in every aspect of running your business, from collecting rent to staying in compliance with local rules and regulations on every type of property you own.
They Don’t Live Near their Rental Property
One of the great things about owning rental property is the fact that you don’t have to live in a particular market to own property there. However, it also means that you’ll need to find property managers in every market in which you own property.
The Cost Of Property Management
Property management companies typically provide excellent value to every owner they serve. The cost of property management services is usually very affordable compared to how much rent you’ll be collecting every month. Of course, every market is different, so it helps to have an expert who can guide you to the most attractive rental prices for your business so that you can maximize your earnings every month.
Hiring A Property Manager
In general, property managers charge 8% to 12% of the monthly rent payment. However, you shouldn’t always assume that the best property manager charges the highest rate for their services.
Property managers should be experts on the local rules and regulations and the market in which they operate, and you shouldn’t accept anything but the best. It’s always a good idea to do your due diligence before signing on with any property manager. Ask them for referrals and do your homework to find out whether their clients, including landlord and tenant alike, are pleased with their services.
Finding A Good Property Management Company
A good property manager should cover every aspect of owning real estate for rent. It’s a good idea to ask questions. For example, ask them whether they stop by their properties regularly and about their process for screening renters. You will probably also want to know how they handle evictions.
It’s also a good idea to look for referrals from professional organizations within the property management industry. For example, if you own residential property in some parts of North America, you might consider checking with the National Association of Residential Property Property Managers for assistance with finding a suitable manager.
Renting a House Through a Property Management Company
Landlords and investors may be interested to know that rental rates are on the rise because homeownership is declining. Buying a house is often financially out of reach, especially in some parts of Canada, including the Toronto area.
As a result, you’ll want to find a property manager who not only serves you well but also makes the process of renting a home through them very simple. Many property owners forget that they need a manager who serves their renters too.
What Are the Responsibilities of Property Managers?
Property managers are tasked with:
- Setting rent prices
- Preparing vacant units
- Processing new tenants and move-ins
- Marketing vacant units
- Screening and approving tenants
- Writing and imposing the lease agreement
- Managing tenant complaints and other issues
- Collecting rent payments
- Maintaining the property
- Performing regular maintenance checks and repairs
- Processing evictions and move-outs
- Ensuring that the owner complies with all local and national laws and regulations
- Documenting everything for tax purposes
- Keeping the books for the property
- Writing regular reports as needed
- Keeping regular daytime hours
- Handling overnight emergencies via an answering service
- Overseeing any employees who work onsite.
What Is a Property Manager’s Most Important Duty?
Property managers have many important duties, but the most important duty of a property manager might be collecting payments. If the owner isn’t receiving their regular payments, they won’t be able to keep the units in good condition for their renters.
However, it is also critical that managers keep their units in compliance with all regulations. They and the landowners they serve can land in some serious hot water legally if they don’t comply with all laws and requirements.
What Type of Plan Does a Property Manager Implement?
Managers implement a real estate management plan to maximize the property’s potential and support the objectives of its owners. They create the operating plan based on data and stated assumptions. The plan is similar to business plans created by other types of business owners.
Managers hold dual roles. The answer to the client who owns the units they are renting out and wants the highest return on each one. Managers also answer to renters, who want the best value for what they will pay to live in the manager’s units.
The manager should take into account both sets of duties when creating their operating plan.
Hiring a manager makes owning properties and maximizing their value much easier. Management companies have the expertise needed to guide landlords through the process of listing their units, screening and selecting the best renters for the spaces, and keeping the day-to-day operations going.
Anyone who owns real estate that they want to turn a profit on will find that they can maximize their earnings by hiring an expert who knows the area in which it is located. The right manager will also be able to find high-quality renters who pay on time and don’t cause any problems or damage the unit in any way.
At Buttonwood, you’ll find all the knowledge and expertise you need to run a successful rental operation.