Property management is the act of handling the functions of the landlord in relation to his tenants. The person tasked for this job is called a property manager. This is an individual or a company hired by the owner to manage residential and commercial property rentals. Property management companies handle a vast clientele of landlords who rent out their property but don’t have the time to find or screen renters. American heritage Properties, Inc., a San Diego-based property management company, offers a discussion on the functions of an effective property manager:
• Evaluation of Income Potential – Property managers should be able to figure out the fair market value of the rental property while considering other factors. This includes homeowner association dues, maintenance costs, mortgages, and other overhead costs that the property will incur.
• Leasing and Renting the Property – The primary responsibility of a property management company is to write the rental contracts, process tenant applications, and do marketing tasks such as putting out ads to show the property to potential renters. They also make sure that the property is ready prior to the tenant moving in.
• Repair and Maintenance – When there’s a problem with the unit such as a leaky roof, plumbing or electrical problems, it’s the responsibility of the property manager to repair and fix all these issues for the tenant. These managers are the ones whom the tenants address their complaints to whenever there’s something wrong with the rental property.
• Transferring Rent Money – The property manager is the one responsible for all the money collected from the property. It’s also within their duties to disburse the necessary homeowner association dues, mortgage payments, salaries of maintenance people, and the amount due to the landlord in an appropriate and documented manner.
• Legalities – It’s the responsibility of property managers to learn the laws regarding the property or properties they’re currently managing. It’s important that the leases and contracts they present to tenants follow federal and state guidelines. They must follow the laws on the eviction process as well as the terms of maintenance and rules for rental properties.
• Recordkeeping – Property managers should keep a record of the income and expenses of all the properties under their management. Most owners require an accounting report at least once every six months to determine where the money is going in terms of expenses and the profit the property is earning.