If you've rented a home a few times, you've probably had some experience with a property management company. Property managers are real estate professionals whose area of expertise is in the leasing of building property. This area of business is necessary in some form in almost every city. The specifics may vary with each company and area, but the basic responsibilities of a property management company are fairly consistent, no matter where you are.
Function
Property managers are administrators hired by property owners to perform the required duties of a landlord, allowing the property owners to collect profit from the rent payments of tenants while doing little or no work themselves.
A property management business can handle commercial or residential properties and can range in size from a single independent manager to a multi-state corporation that controls hundreds of properties.
Leasing
Property management companies handle all leasing arrangements for the properties they control. These duties include advertising for tenants, interviewing potential renters and running background checks, drafting lease agreements, handling rent and deposit payments, and assigning and collecting fees for late payments or other issues. The company then deducts its operating costs from these fees and payments and delivers the remainder to the landlords. This means that the landlord's payment will be based on how many properties they own, how high the rent is on their properties and the maintenance costs that must be deducted in a given period.
After any maintenance costs are deducted from the collected rent, the property management company may take a flat fee for its services or a percentage of the total rent as payment. For example, a property management company that takes 18 percent from a property with a rental rate of $1,000 and required $250 in maintenance would pay $615 to the landlord (after any applicable taxes).
Maintenance
Property managers are also in charge of providing all legally and contractually required maintenance and repairs to properties that they manage. This means the property managers must not only keep tabs on their buildings and schedule all regular maintenance, but they must also act as a point of contact for tenants with maintenance requests. Property management companies may then hire third-party contractors or employ their own maintenance team.
Conflict Resolution
It is the responsibility of property managers to resolve conflicts with and between tenants whenever possible to prevent the landlord from getting involved. This can include noise and behavior disputes, cleanliness issues, arguments between tenants and lease compliance.
Legal Concerns
Property management companies represent the role of landlord in legal disputes with tenants, unless the concerns specifically involve the landlord. This can include rent collection and eviction and matters regarding broken leases or property damage.
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