Property Management Companies, What Do They Do?
Published on: Friday, December 18th, 2015
Property Management Companies, What Do They Do?
A great property management company can be a huge asset on your properties. They can take care of all the day-to-day activities allowing you to focus on growing your business instead of running it. They can also give you peace of mind that someone is always looking out for your property whether you live across the street or out of state. Let’s look at some of the essential activities that your property management company should be providing you.
Leasing & Lease Renewals & Background Checks – Property management companies should handle all the leasing, tenant retention through lease renewals, and tenant screening to ensure your property attracts high quality tenants, who pay their rent each and every month, and keep turnover to a minimum. A good property management company will keep your property full of qualified tenants. Tenant screening is essential to keeping your property safe, keeping turnover costs low, and maintaining qualified tenant base. The property management company must also survey competing property rental rates and monitor local trends to ensure rental rates are maximized.
Tenant Communications – Property Management companies are your face to the tenant base and prospective tenants. It’s essential that your property management company can communicate with these tenants and prospective tenants clearly and effectively. Good communication will instill confidence in the tenant base and make sure problems are dealt with professionally and curiously. Resolving any tenant issues or complaints that arise from time to time. It is the responsibility of the property management company to ensure that the units yield consistent rent and that they maintain good relationships with the tenants, while maintaining consistent and fair enforcement of the rules and regulations. A good property management company will be quick to resolve issues caused by problem tenants and be firm in evicting them, if need be.
Advertising/Marketing – Clear and effective advertising and marketing are extremely important to keeping your property full with quality tenants. A quality property management company will put together a customized marketing plan for each property including online marketing and websites, print advertising, presenting model apartments, postcards, etc. Good marketing will minimize your marketing budget and maximize results. A focus on return on investment is essential.
Rent Collection – A primary duty of a property management company is rent collection including any and all late fees or additional fees such as laundry revenue, garage rentals or utility reimbursements. The management company should focus on collections and effective rental income instead of just high occupancy. Every dollar lost in collections in one less dollar to the bottom line.
Financial Management, Accounting & Reporting – Detailed financial management, accounting, and reporting is an essential duty of a property management company. They must have industry leading policies, procedures, and systems in place and provide full disclosure and reporting to their property owners. Investors can get great returns provided the property expenses are properly budgeted for and stayed within. A good property management company will prepare detailed reports for the owner to help project profits and losses. These may be done on a monthly or annual basis … or both. In addition, a manager should prepare balance sheets to record details of income and expenses, and maintain a tracking system of miscellaneous financial records.
Manage Legal, Taxes and Compliance – Lease agreements, renting, building upkeep, and staying within federal and state regulations are all part of the job for a property management company. Managing risks and potential liabilities is essential. The manager should have good legal knowledge about property and tenancy laws for preparing deal papers, and the expertise to include suitable clauses and take appropriate legal action against a tenant if any agreements are violated.
Repairs and Maintenance – Property management companies help keep buildings maintained and in good condition so that it conforms to local health regulations and safety codes. This includes responding to tenant requests for repairs and dealing with any emergencies. Each and every y maintenance request should be recorded and followed up on to ensure tenant satisfaction. They schedule regular maintenance, such as cleaning common areas and keeping up the lawn and landscaping, service heating and air conditioning systems regularly, painting and electrical inspections. Managers may bring in plumbers, technicians and other service vendors when needed.
Having a great property management company on your team goes a long way in ensuring easy, profitable and stress-free investing. They can bring you hassle-free rentals and maintenance, while optimizing your income, property value, and return on your investment.