Hiring a property management company to oversee your rental home can be a smart way to save time and money. Their services ensure that all the aspects of your rental business are covered even when you are busy or away. However, before you engage property managers, it’s a good idea to understand their services, so you know what to expect of them and can hold them accountable. In this article, we outline the main functions of a property management company.
Handling tenants is one of the primary responsibilities of a property manager. Some of their functions may include:
- House Letting- Property managers can get tenants for your vacant properties within short periods. They often have vast networks in the market which give them access to ready tenants. They can show multiple clients your vacant rental and get a tenant to move in.
- Tenant Screening- Screening prospective tenants ensures you have good tenants who keep your house in good condition, pay rent on time and respect the terms of your agreement. Property managers often work with background check professionals to eliminate potential troublesome tenants.
- Lease administration- Making the relationship with tenants legal requires a well-drafted lease agreement. The property managers will draft and administrate all lease agreements with the tenants. They also ensure that the tenant is compliant with the lease’s terms during their stay. When the contract expires, they make sure that the tenant renews it on time.
- Moving Tenants- When a tenant is moving out, the property manager needs to inspect the house for damages. They are also responsible for refunding the tenant’s security deposit once repairs have been done.
- Tenant Eviction- If any tenant needs to be evicted because of lease violations or rent defaulting, there are procedures for ensuring it is done legally. Professional property managers have experience with evictions and will ensure they comply with the law.
- Tenant Complaints- Customer care is important in the rental business. Your property manager should handle all tenant inquiries and complaints and address them appropriately. Prompt responses keep your tenants happy and help avoid high turnover rates.
Because rent is the primary source of income for your rental business, it needs to be handled professionally. Some of the property agent’s rent roles include:
- Pricing- Figuring out how much to charge for your rental may seem like an easy task, but there are a couple of factors that have to be considered. These include current market rates, the condition of your property and your overall expenses. A professional property management company in Santa Clara, for example, has experience with this particular market and will be able to advise on the right rent to charge.
- Collection- Rent collection is perhaps one of the main reasons landlords hire property managers. It is easier for them to enforce rent payment with tenants and ensure your income flow is constant. They can also see to it that other charges or bills the tenant is responsible for are paid on time.
- Adjustment- Because property managers have a pulse on the market, they can implement rent adjustments whenever required. They communicate these changes to the tenants in a professional manner to avoid inconveniencing them.
Physical Management Roles
Property managers need to keep your asset in a habitable condition for the tenants. Keeping the property well maintained also preserves its market value which attracts good tenants. The central roles in the physical management of your rental home are:
- Repairs- When a tenant is moving in or moving out, the house needs to be restored to its original condition. Occasionally, other repairs inside and outside the home such as fixing a broken garage door or a leaking faucet will need to be carried out. Property managers work with repair professionals to get this work done for you.
- Maintenance- Maintenance work involves work done to prevent damage to the property and to keep it looking presentable. It includes landscaping, pest control, servicing appliances among other activities. The property manager keeps a schedule of all maintenance activities and makes sure they are done routinely.
- Because of their relationships with repair and maintenance service providers, property management companies can help you save money on these expenses to maximize your profits.
Because there is a lot of paperwork related to the rental business, property managers also help handle this role, specifically:
- Record Keeping- Accurate records of all income and expenditure need to maintained to keep track of how your business is performing. Tenant records are also necessary and may come in handy in legal proceedings. Additionally, records of all state or county licenses need to be kept safe. Property management companies usually have software that enables them to organize all these important documents for their clients.
- Budgeting- Besides repair and maintenance expenses, your property manager can help you track and plan other costs including insurance premiums, mortgage payments, and legal fees. This budgeting is necessary for the optimal flow of income. Even when you have vacancies in your rental property, some expenses such as emergency repairs and mortgage payments can still be taken care of.
- Filing Taxes- There are various tax advantages that landlords enjoy. A seasoned property manager can help you minimize your tax load by ensuring you take advantage of all deductions available to you. They can also help you file your taxes on time and avoid penalties.
Your property management company can help you save money in legal fees by handling some legal procedures such as lease agreements and evictions. They can also ensure you comply with Fair Housing Laws including health and safety regulation compliance, proper handling of security deposits, and non-discriminative tenant screening procedures.
As you can see, a professional property manager can help perform most, if not all of your landlord duties, allowing you to enjoy your profits stress-free. If you are looking for property managers in Santa Clara, you should compare different companies by asking them to outline the roles they perform. Finding a company that can handle all of the roles professionally and at a reasonable cost should be your aim.