What Does a Property Manager Do? | Learn All About the Responsibilities in Our Guide (2023)
If you are landlord struggling to manage your various rental properties, hiring a property manager or property management company may offer some relief.
It allows you to focus on other responsibilities such as acquiring more real estate or attracting new tenants.
Many landlords choose to use these services but what does a property manager do?
The answer depends on your needs. You can hire property managers to handle almost every aspect of owning a rental property or you can use them for one specific task.
The following guide breaks down the key responsibilities of a property manager and the benefits of hiring one.
The Role of a Property Manager
What does a property manager do? Property managers provide services to owners of rental properties.
The basic role of the manager is to manage a property. This may include residential rental properties, apartment buildings, commercial spaces, and industrial warehouses.
The scope of the manager’s duties depends on the agreement with the property owner.
In most cases, the property manager manages the following areas:
Tenants
Rent
The property itself
However, the exact duties depend on the contract. A property management company does not need to completely take over operations at your rental properties.
For example, you may choose to hire someone to handle rent collection while you continue to deal with maintenance and upkeep yourself.
Here is a closer look at some of these responsibilities:
Managing Tenants
What does a property manager do to help with tenants? Property managers can help find them.
About 27% of Americans rent their homes, making rental properties an attractive market for investors. Unfortunately, finding suitable tenants is not always easy.
Property managers help find tenants and fill vacancies. They can market your property, screen tenants, run credit checks, and show properties to potential tenants.
You can also rely on your property manager to handle leases, complaints, and move-outs.
Basically, with the help of a property management company, you may never need to speak to your tenants again.
Managing Rent
Property managers do not just collect rent; they can help set the rate to attract tenants.
They can also adjust the rent each year while following state and local rental regulations.
In 2018, the United States rental market reached an all-time high of $1405 per month. If you do not pay attention to fluctuations in your local rental market, you may miss out on the opportunity to set a higher rent for your properties.
Setting and adjusting the rent based on local conditions allows you to continue attracting tenants and maximizes your income.
Managing the Property
As a landlord, it is your responsibility to maintain a safe property for tenants. Issues such as mold growth, plumbing problems, roof leaks, and pest infestations can result in fines or even force the city to shut down your property.
Maintenance is also one of the tasks that landlords dread the most. If you do not want to handle the repairs yourself or deal with contractors, use a property manager.
Property management companies can keep up on the preventative maintenance. This also reduces the need for major repairs, resulting in more savings in the long run.
The average cost of upkeep for a rental property is 1% of the property value per year. If you own a $150,000 rental property, you may spend $1500 per year in upkeep.
However, replacing a roof or eliminating mold could cost thousands.
What Are the Benefits of Hiring a Property Manager?
What does a property manager do for you? Hiring someone to handle the areas discussed saves you time and energy.
Allowing someone else to take over the main responsibilities of being a landlord is useful for those with lots of rental units. You may struggle to deal with hundreds of tenants on your own.
Property management services are also beneficial for those who live away from their rental properties. If you move to a different state, you may find it hard to oversee the month-to-month tasks such as rent collection and upkeep.
Along with these reasons for hiring a property manager, you may simply find yourself tired of managing your own properties.
No matter the reason for needing help, property managers streamline the process of owning rental properties.
Last Thoughts on Hiring a Property Manager
So, what does a property manager do? As the name suggests, they manage properties.
You can use property managers to collect rent, price your rent, vet tenants, and even market your property. They can handle maintenance, emergency repairs, and almost any other tasks related to managing a rental property.
Of course, working with a property manager requires a fee.
The fees vary depending on the market and region but you can typically expect to pay about 5% to 10% of one month’s rent for each tenant.
If you are finding it difficult to keep up with the challenges of owning rental properties, consider hiring a property management firm. Reduce your burden while continuing to earn income from your real estate.