A property manager is a third party that you can hire if you are renting out one or more properties to tenants. As their job title suggests, they deal with the management of your property and can help you with the day-to-day administrative tasks that you will be likely to come across.
Let’s take a closer look at why you might want to use the services of a property manager and how they might be of benefit to you.
Why Hire a Property Manager?
There are a number of reasons why a property-owner might need assistance from a property manager. Their services are incredibly useful if you’re managing a number of properties in different locations and you’re unable to oversee them all personally. Also, you may not live nearby to your rental property – many people who have relocated abroad rely on property managers to look after homes that they have decided to rent out.
Property owners may be limited on time and have other business to handle, therefore require someone else for their asset management. If they have the financial means to hire someone to take care of the more hands-on elements of property management, it can save them a significant amount of time.
What Are They Responsible For?
If you were to hire a property manager, what would they specifically be responsible for? They would be required to:
- Set the rent at the right level for the area and the property to attract tenants, as well as adjusting it to reflect any changes in the property market. Their expert knowledge on landlord-tenant laws means they will know when they can make an increase, how much notice they must give tenants and how to keep a signed record of the agreement.
- They will be in charge of advertising and screening potential tenants, as well as handling leases and security deposits.
- Property managers must communicate with tenants, handle complaints, emergencies and, in the worst case scenario, evictions.
- They take care of maintenance and repairs in a timely manner and arrange regular inspections to ensure the property is kept in good shape.
Importantly, they will manage your budget and maintain accurate records regarding expenses, signed leases, costs for repairs, insurance costs, rent collection and taxes.
What Are You Responsible For?
Of course, you’ve got to find the right property manager. Trust is key, so you should make sure your communication channels are strong.
Your property manager should be pro-active and report to you regularly about expenses, maintenance issues and information about inspections. Consider introducing regular audits of their work and make sure you’re familiar with the basics about tax and landlord-tenancy laws so you know that everything is above board.
Remember that the final financial decisions are yours – your property manager can advise you but ultimately it’s your asset and you need to know it is being handled correctly. For example, if your property isn’t maintained well enough and becomes inhabitable, you could be in breach of contract and your tenants may have grounds to break the lease.
Hiring a property manager doesn’t mean that you take a backseat – you need to remain aware of how your assets are being looked after. However, there are plenty of advantages to using one and they can save you valuable time on the day-to-day management of your properties.