Property management is a rather broad subject matter. There are different Property Managers, including fair housing managers, government property managers, landlord property managers, condominium property managers, private property managers, and others. Fair housing is one of the significant issues facing property managers today. This issue refers to the ability of tenants to have access to decent quality affordable housing while also being able to stay in their homes. Many landlords are facing eviction notices and other legal problems because of the inability of their tenants to pay their rent.
The issue of fair housing has become a major sticking point in the property management process. Some investors feel that property managers are not doing enough to help these renters rent affordable units, while others feel that it is too much of a hassle to try and help someone who cannot afford to pay their rent. Average property management fees for landlords or tenants varies from as little as two hundred dollars in some areas to as much as twelve thousand dollars in others.
Most property managers work under a contract that covers their services as well as what the property owner needs to do for property maintenance and repairs on a regular basis. These contracts vary greatly between locations. One common area of agreement between property owners and managers is that the manager is responsible for all repairs and maintenance to the property on an ongoing basis. The manager may be responsible for replacing broken windows, fixing electrical wiring, snow removal, or any other services the property owner feels the property needs. Sometimes, the landlord will provide materials and equipment to keep the property maintained on a daily basis.
Property owners may want property managers because they want to control expenses associated with the rental market. Property managers often provide rent collection, escrow, vacancies, lease audits, vacancy renewals, lease modifications, landlord relations, and more. They also provide advice to tenants about various leasing options. They can assist with credit scores, rent payments, cancelling leases, short-term lease options, property repairs, landlord relations, landlord insurance, advertising property for sale, public reporting requirements, landlord-tenant relations, property management, landlord property management, property taxes and more. A manager can help the property owner to achieve the best overall tenants.
Tenants often prefer property managers, because they receive assistance with rent collection and payment processing, along with providing assistance with deposits, security deposits, late charges, eviction issues, damaged belongings issues, and more. In addition, property managers help tenants obtain financing for new units and may provide real estate seminars and landlord workshops to educate tenants on important issues affecting the rental industry. Many property managers also help the landlords advertise the property for sale, conduct open houses, manage renovations and repairs, coordinate tenant relations with their tenants, draft contracts, submit rent collections to the Rent Department, perform property taxes and collecting attorney expenses when the property owner fails to properly pay for these services.
When hiring property management companies, owners should carefully consider each aspect of hiring the right person for the job. First, the company must have experience managing multifamily and multi-unit properties. Property managers with at least five years’ experience are preferred because their experience and expertise will prove valuable to both the owner and the tenants. Property managers should also have excellent communication skills and a positive reputation for fair treatment of tenants. The firm should provide excellent financial services, with the assistance of experienced realtors and certified financial planners.
The property managers should also provide ongoing office support including payroll administration, marketing and leasing, accounting and general office management, leasing documentation services, budget planning and forecasting, purchasing property tax obligations, collecting late fees and interests, reviewing security and surveillance camera footage, providing property upkeep and pest control, preparing and maintaining government reports, collecting late fees and deposits, processing cash receipts, and more. Lastly, the manager must be detail-oriented and able to work independently to resolve all the complex issues concerning tenants, such as evictions, lease modifications, and other related issues. The manager also ensures that the property is maintained in excellent condition. Hiring a residential property manager can save an owner a great deal of time, money and effort and allow the owner to focus on other aspects of the business.