Property managers engage in the acts of operating, controlling, and overseeing various types of real estate. Additionally, these professionals specialize in the management of equipment, various types of personal property, tools, and a seemingly endless array of physical-based capital assets which are acquired and required in order to build, maintain, and repair various types of real estate.
Property Management is a field that includes all of the various systems, processes, and manpower necessary to manage rental property. Examples of responsibilities include acquisition of property, control of the real estate, accountability for the property, the maintenance required, and the actual utilization of said property.
How Much Do Property Managers Charge?
If the property manager is overseeing residential property, most will charge 25% -50% of one month’s rent, minus the money that is spent on expenses. Commercial property managers may charge the same or more.
These percentages represent full-service property management services. There may be an onboarding cost involved.
Typically, this is around $150. It is a one-time fee only.
Given the fact that property managers oversee a wide assortment of services, the fees involved are well worth the investment to provide peace of mind and preservation of time to the property owner/s.
What is the Main Goal of Property Managers?
While property managers have many responsibilities, the main goal of this professional is to help the owner achieve the maximum profits on the property or properties that they have purchased. In addition to this, property managers strive to take all work away from the property owner and handle all aspects of the business.
Given the fact that rental property takes a lot of time, effort, and work, property management services provide property owners with a high level of relief.
Do Property Managers Do Repairs?
If an issue develops with your rental property or other types of real estate – such as wiring issues or plumbing leaks – the property management team that you hire will either fix the issues or they will hire a licensed, insured professional to handle the repairs. In addition to standard repairs, property managers specialize in the general maintenance associated with the property.
What is the Most Important Role of a Property Management Team?
The property management team that you hire for your real estate responsibilities will have many important roles; however, the most critical of these is the process of selecting/finding tenants for your property.
When you rent out real estate, you must have tenants that will not destroy your property, are responsible, and will pay their designated rent amount each month. Tenants are the foundation to your overall financial success.
Failure to secure the right type of tenant could result in complete property destruction, issues with the city or county where the property is located, and extensive costs. A tenant that fails to pay properly or fails to properly care for your property could result in the loss of your property.
Are There Different Types of Property Managers?
Yes, there are different types of property managers currently available to real estate owners. These include the following:
- Residential Property Managers
- Commercial Property Managers
- Industrial Property Managers
- Special Purpose Property Managers
What is a Residential Property Manager?
A residential property manager specializes in properties that are typically lived at for an extended amount of time by a tenant. Examples of real estate types that may be managed include single-family homes, apartments, vacation rentals, condominiums, multi-family homes, townhouses, REO properties, modular homes, and manufactured homes.
What is a Commercial Property Manager?
A commercial property manager specializes in properties that are classified as being “non-residential”. Examples of the types of properties these professionals oversee include businesses that offer accommodations for the public, office properties, medical facilities, doctor offices, areas that are rented for short periods of time by professionals, and retail structures such as gas stations, malls, shopping centers, and even restaurants.
What is an Industrial Property Manager?
An industrial property manager oversees, maintains, and inspects industry-specific real estate. This professional is responsible for ensuring that the property is within building codes, building regulations, the coordination of reviews for real estate, and even conducting bids for various types of vendor services. Industrial property managers also manage staff.
Examples of the types of properties that fall under industrial property managers include automotive plants, food packaging plants, warehouses, and distribution facilities.
What is a Special-Purpose Property Manager?
A special-purpose property manager is a professional who specializes in properties that have a very specific use. Individuals who choose this profession typically specialize in both property law and business management. Examples of these property types include nursing homes, theaters, arenas, schools, churches, and resorts.
What are the Legal Responsibilities of a Property Manager?
Property managers are legally bound to provide a lease agreement or rental agreement and all other types of legal documentation pertaining to the property or properties that they manage.
This is the very basic of the legal components of their work; however, the legal obligations may far exceed this – it all depends on the types of services that the owner of the property signs up for when they hire the property manager.
What’s the Difference Between a Property Manager and a Landlord?
A property manager is a professional that serves as a caretaker of properties that are rented by tenants. The landlord is the owner of the property that is being rented to tenants. Property managers help ease the load on landlords by performing many of the tasks that they typically perform, such as tenant screening, repairs, maintenance, and emergency service calls.
What Standard Services Do Property Managers Offer?
There are several standard services offered by professional property managers. Many offer just basic services such as tenant screening and rent collection. It is in your best interest to opt for property management services that offer – at the minimum – the following services:
- Promotional Optimization Software Platforms for Advertising
- Tenant Screening
- Contract Preparation
- Lease Preparation
- Tenant Relation Services
- Inspections of Property
- Repair Services
- Security Deposit Handling
- Rental Analysis
- Professional Photo Services
- Virtual Tours for Potential Tenants
- Turnover Inspections
- Lease Enforcement Services
- Vendor Selection Services
- Monthly Reporting
- Online Portals for Account Access
- ePayment and eStatement Services
- Tax Statement Preparation
- Customer Service Guarantee
Does a Property Manager Have to Have Insurance?
Yes, the property manager that you choose for your rental properties should be insured. At the minimum, it is advised that the company has general liability insurance and E&O insurance. This will cover both the liability associated with the business and all of the services that are provided to you, the landlord.
What is a Property Management Agreement?
A property management agreement is a legally binding contract between the property management firm and a property owner. It specifies the way that the company will handle the day-to-day operations, the definition of all services that will be rendered, and what responsibilities fall on the property owner.
When you sign up with a property management firm, it is essential that you ensure that the company provides a property management agreement and that you read all of the information on the agreement so that no misunderstandings develop after they start providing their services to you.
Is There Another Name for a Property Manager?
Yes, many times, a property manager is referred to by other names. These include the following:
- Real Property Administrator (RPA)
- Systems Maintenance Administrator (SMA)
- Facilities Management Administrator (FMA)
It is important to note that on a property management agreement between you and the firm, the property manager may be identified as any or all of the above-listed names.
Do Property Managers Negotiate Rent or Leases?
Yes, a property management company is able to negotiate in both rent amounts and leases. If a tenant wishes to engage in negotiation, it must be done prior to the signing of the rental agreement or the signing of the lease.
Negotiations cannot be pursued after this until the current contract runs out. In most instances, this is a year. For landlords that operate monthly, it could be monthly. Monthly agreements/contracts are becoming increasingly rare, though.
Does a Property Manager Have a Lot of Power?
Yes, the property manager will work closely with the landlord; however, they have the capability of screening and selecting tenants, managing complaints, handling maintenance and repairs, move-outs, and may also issue evictions.
What is the Best Property Management Firm?
If you are in search of a property management firm that offers a massive amount of services, is comprehensive, has high ratings, and zero evictions, we here at Pioneer Property Management can assist you!
We are licensed, insured, and put your best interests first. Our goal is to ensure that your real estate endeavors are all 100% successful! In addition to multiple services, we also offer numerous guarantees to ensure your satisfaction. Call Us today!