Jesse Sasomsup is the founder and president of Earnest Homes, a Los Angeles-based residential property driven by technology.
Property managers are an essential part of the real estate industry. Their main roles and responsibilities revolve around handling the day-to-day operations of rental properties to ensure they run smoothly and efficiently.
Whether you’re looking to become a property manager yourself or trying to find a property manager for your investments, this guide will discuss what property managers do, types of property managers and the value property managers bring to the real estate industry.
Understanding Property Management
Property management is a thriving global industry with a market size of over $101 billion per year. This means there’s plenty of opportunity for new property managers to get started in this industry.
Types of Property Managers
While rental properties come in various shapes and sizes, so do property managers. Here are the four main types of property managers you’ll encounter:
Residential Property Managers
As the name suggests, residential property managers oversee the operation and management of residential real estate. This could include single-family homes, apartment complexes, condominiums and more.
Residential property managers are responsible for ensuring the property is well maintained and fully rented at the correct market rate at all times. This involves marketing the property, screening potential tenants, collecting rent, arranging maintenance and repairs and addressing tenant concerns.
In addition, they need to comply with local landlord-tenant laws and regulations to avoid potential legal issues.
Commercial Property Managers
The role of commercial property managers is similar to residential managers but typically involves working with businesses such as retail, warehouse and office spaces. Apartment buildings with more than four units can be considered as both residential and commercial as well.
Commercial property managers deal with broader issues, including shared spaces, parking, security and utilities. They also work closely with business tenants, who often have specific needs depending on their industry. Commercial property management also involves a greater understanding of economic trends, market conditions and maintaining good relationships with long-term tenants for customer retention.
Property Managers for Vacation Rentals
The vacation rental market has grown significantly in recent years with the rise of short-term rental sites like Airbnb, Vrbo and Booking.com. Property managers in this sector manage short-term vacation rental properties and deal with bookings, check-ins, check-outs, cleaning between guests and addressing any issues guests might face during their stay.
Like residential and commercial property managers, vacation rental managers must stay up to date on local zoning restrictions and building codes since not all jurisdictions allow short-term rentals. Since, this type of management is hotel-like service, short-term property managers usually work after hours because of check-ins and emergencies.
HOA Managers
HOA, or homeowners association managers, manage communities of homes where the property owners are part of their association. These property managers typically maintain shared spaces like parks, pools, clubhouses and common areas and enforce community rules set by the association.
Responsibilities for HOA managers include:
• Collecting HOA dues
• Paying vendors for maintenance or repairs
• Ensuring compliance with the HOA’s rules
• Coordinating and attending meetings with the HOA’s board of directors
• Communicating important news and community information to residents
They act as the liaison between the homeowners and the HOA board and help resolve any conflicts. HOA managers also help the board plan for long-term maintenance and improvements to the community.
Property Manager Responsibilities
Property managers have different responsibilities depending on their location and the type of property they manage. However, here are some everyday responsibilities for most property managers today:
Tenant Screening
Tenant screening is crucial to ensure that tenants pay rent on time and treat the property respectfully. This process typically involves credit checks, employment verification, reference verification and criminal background checks.
A property manager has the expertise and resources to conduct these checks effectively and efficiently. They can also spot potential red flags in applications and avoid problem tenants who could cause legal or financial issues down the line.
Maintenance And Repairs
Another crucial part of a property manager’s job is to maintain the physical condition of the property and schedule maintenance when needed. This can include routine maintenance tasks like leaky faucets as well as emergency maintenance issues like broken pipes and water lines. A property manager should have a network of reliable plumbers, carpenters, electricians and other contractors they can call upon when needed.
Rent Collection And Financials
Property managers are responsible for creating an efficient way to collect rental payments from tenants. Most property management companies today use online portals for tenants to pay rent, but some renters may prefer to pay by check to avoid online processing fees.
Additionally, property managers must maintain accurate financial records and establish a budget for the property. The budget may be used for activities like marketing, events or investing in improvements to the property.
Compliance With Fair Housing Laws
Property managers need to understand and abide by national and local legislation related to property management. This includes Fair Housing Laws, eviction processes, property safety standards and tenant rights.
Benefits Of Hiring A Property Manager
Hiring a property manager can offer a range of benefits, particularly for landlords or investors who own multiple properties and don’t have the time to manage them independently. Some key benefits of hiring a property manager include:
Reduced Exposure To Legal Issues
Real estate investors may not have a comprehensive understanding of local laws and regulations like most property managers. By relying on a property management company, investors reduce their exposure to legal issues.
Reduced Stress
Dealing with issues related to property management can be stressful for investors juggling multiple investment properties. Hiring a property manager can help to reduce this stress by dealing with problems as they arise and ensuring the smooth operation of your rental properties.
Final Thoughts
This article discussed why property managers are vital to the success of real estate investors in today’s world. Property management firms bring solutions to both landlords and tenants. Be sure to use these tips and advice when hiring a property manager or when considering a career in property management.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?