Category Archives for "Property Manager"

Responsibilities of a Real Estate Property Manager

A landlord or property owner hires a property manager to manage day-to-day operations. However, based on the type of property and requirements, these duties are versatile and don’t apply to all rental units at the same time. A lot of realtors are property managers, so you must be wondering can you be a property manager and a real estate agent?

There is no law which can forbid you to perform these two jobs simultaneously. Additionally, you will only contribute to your employer considering you are in this line of business. On the other hand, property manager faces a lot of responsibilities and here are some of them.

Rent responsibilities

Rent issues are common responsibilities of a property manager, and they include:

Establishing the rent – he is in charge of setting the appropriate rent level, to attract potential tenants. A property manager understands the market relations and knows how to challenge the competition.

Collecting rent –  a person who is responsible for the property ensures the optimal cash flow and sets up a date to gathers the rent, as well as late fees.

Adjusting the rent – the property manager has the power to increase the rent, based on the individual state or municipal law. He can also decrease the rent if needed.

Tenant Duties

Managing tenants is another duty property manager handles.

Finding tenants – property manager has to fill all vacancies. He knows how to advertise and what to include in ads. He also understands how to attract new people.

Checking tenants – no one wants to deal with irresponsible tenants. Therefore, a property manager enforces credit check, criminal background checks, and any other safety precautions. His job is to select appropriate tenants who will pay rent on time.

Managing leases – this includes lease terms and empowering all clauses to protect the owner.

Handling complaints and emergencies – he is paid to deal with maintenance, and other complaints tenants may have.

Move outs and evictions – when the tenant moves out, the manager must inspect the unit to make sure everything is in perfect order. He needs to check the possible damage and determine how much of security deposit he will return. On the other hand, he can evict tenants who don’t pay rent.

Maintenance and repairs

The property manager must keep the building safe and in habitable condition. He needs to inspect the property and is responsible for physical management.

Property maintenance – he makes sure that property is in top shape. For example, a property manager is in charge of performing repairs, checks for leaks, shovels the snow, removes trash, and so on. The maintenance should keep the existing tenants happy and satisfied.

Repairs – when the issue arises, the property manager needs to fix all the problems, or hire someone else who can do it. For instance, he will have to hire plumber, electrician, carpenter, or other contractors.

Knows the law

An excellent property manager as an in-depth knowledge of national laws regarding properties.

He needs to:

Screen tenants

Manages security deposits

Ends a lease

Evict tenants

Comply with safety standards

Oversees budget and taxes

A property manager is in charge of the budget of the building. He also needs to keep the records clean, which includes a list of things such as inspection, signing leases, managing various requests, maintenance cost, record rent collection, and any other costs.

Taxes are a crucial part of managing a property, and every manager needs to understand how to file for taxes. He needs to know the fundamental laws and completes all the tasks on time.

Top Six Features Of Property Management Systems

Regardless of the industry you are in these days, the software you use will make a significant difference in revenue and productivity. Let’s take a look at real estate transactions. They have progressed a lot in organization since the introduction of new technologies. You no longer have to hire a property manager for private estate to perform all the work.

Now with the help of property management systems, you have the option to track all data and monitor the entire operation through a software. So here are the top features of property management software you should explore.

Finances are easy to inspect

There is no doubt that property management software facilitates all financial operations. You will be able to monitor all the transactions, and they will be organized in a way that makes sense.

Some of them have the option which allows tenants to pay their rent through specific portals. In this way, you will be always on top of the task and track your numbers with ease, to make sure you stay within the budget.

It’s efficient

While managing properties might seem like a profitable job, it’s not always an easy task. However, with the right software, you will discover that you have an efficient tool to accomplish the work. You will not only please the tenants, but your employees as well.

With the help of an excellent property management software, you will complete tasks more efficiently and avoid further complications. In this case, you will keep your tenants happy and build a positive reputation in this business.

Accounting will be simple

The software allows you to monitor daily finances in an organized way. When challenging accounting tasks present themselves, such as quarterly tasks, you will be prepared for them

This tool will simplify all the accounting aspects and you will know that saved and ready for you whenever you need them, especially during the tax season.

You will save a lot of time

Designed to save you a lot of time, property management software will deal with features such as maintenance request tracking, sending notifications and rent payment.

With some system, you can customize the features and adjust them towards your needs. In this case, you will find that various process and tasks can be completed faster than if they were done manually.

You will have quick access to information

These days everyone is on the go, and when you manage properties, you need to be on top of your task all the time. You never know when you are going to need access to your date. For that reason, property management software will provide you with quick access, and it supports numerous devices, which can be quite handy.

Online security

Nowadays, it’s easy to get lost in an online world and compromise the safety of your clients. There are too many breaches and hacker attack.

Therefore, if you want to have secure access to all your paperwork, then property management software is an answer to your prayers. You can check tenant’s applications and their credit score, which is essential in this line of work.

Considering that you are dealing with sensitive information, you will need software that is secure and reliable. With its help, you will protect your tenant’s data that comes with leasing and renting property.

Top Three Strategies To Manage Rental Property

If a rental property isn’t handled correctly, then it can become unprofitable business soon enough! However, there are a couple of ways which can help you manage the property, that will match every landlord’s needs.

Sometimes, even all that hard work won’t help you if you don’t know how to utilize your recourses. However, before you select the right strategy, you should be aware of the fact that all different aspects of the rental property are managed separately.

We are going to break down the landlord’s management responsibilities into three sections. It will help you understand better the challenges you will be facing.

Tenants management

The most immediate and the most obvious responsibility of every property manager is the tenants’ management. However, if you want to be a successful landlord, then it involves a lot of duties than just collecting the rent. You will have to handle the following task:

  • Rent collection – due dates, collecting rent every week or month and setting up late fees, and managing the unpaid rent.
  • Lease agreements – following and fulfilling the tenant’s law and making sure that lease is up to date.
  • Moving in and moving out – signing the agreements and covering all the rules and requirements with your tenants.
  • Tenant background check – it’s essential for the safety of other people occupying your rental space.
  • Tenant complaints – setting up plans to fix the issues.
  • Tenant eviction – due to unpaid rent, or to a violation of terms and conditions, at some point you will be obligated to evict tenants. In this case, you need to have all evidence to support your claims.
  • Repair request – as a property manager, you need to respond quickly and efficiently.
  • Property maintenance and inspection

The second part of your rental property management is maintenance and inspection. The physical structure needs to be maintained, to keep the tenants safe and secure. If you have insurance, then the insurance company will request from you have the property fully functional, to meet the specific standards.

  • Maintenance – this involves cutting the grass picking up the leaves, shoveling snow, keep the common areas clean, taking out the garbage, making sure that tenants have running water all the time, and so on. Also, you need to fix the leaks, deal with plumbing, perform repairs, such as broken doors, cracked tiles, and window locks.
  • Inspections – property managers go through various inspections, such as town inspection and insurance company inspection. The town inspection makes sure you are following all the regulations regarding safety and health codes, while insurance one inspects the property to determine the amount they are ensuring it for.

Dealing with finances

The third part of management is dealing with funds. You should have a clear picture of how much money is coming every month and how much is going out. This includes a couple of categories:

  • Rent – how much can you collect each month
  • Mortgage – what you pay each month to the bank
  • Insurance – how much money do you spend to insure your rental property
  • Utilities – if tenants aren’t responsible for the utilities, which is not often the case, how much money you spend on gas, electricity, and water bill.
  • Taxes – consider your annual property tax
  • Fees/fines – sometimes, you will have to pay for property inspection or court costs. Also, you will have to deal with will unexpected penalties as well.

The Best Property Management Strategies You Should Consider

In the previous post, we explained the different areas of the rental property that needs to be handled. Now you can determine how you want to manage these aspects, and there are three main approaches you should consider.

We would further explain into details each step, helping you understand this complicated, but easy to understand structure. Depending on your involvement and ability to dedicate your time and work hard, property management shouldn’t pose an issue for you.

So, here are a top three priorities you should focus on:

Do it yourself management

This approach requires your 100% responsibility, meaning you are in charge of everything. That’s why it’s called DIY. You are the one who is collecting the rent, making the repairs, or shoveling the snow.

This approach has a couple of pros, but also several drawbacks.

Let’s focus on pros first!

Complete control –  as a rental property owner, you have total control. When you are completely involved in a process, then you know what’s going on in all parts of your business.

You and solve problems quickly – considering you have your hands in all parts of the management, you can spot the problem right away and act soon. However, since you are in charge of all the things, maybe you won’t have time to tackle the problem immediately.

Cons:

Lack of knowledge – it’s impossible to know everything. For instance, if you have hired an accountant to do your taxes, he might have caught several deductions that you aren’t aware of.

It can be overwhelming – after some time, and too much stress, you might become anxious, since you are responsible for everything.

Half DIY/Half Outsource

It’s okay to ask for help, especially if you are managing a large rental property. For example, you can keep the areas that you feel you have an expertise, and then outsource the areas that you don’t feel comfortable or desire to manage.

Pros

Free time – when you are not doing everything, you will have more free time. However, how you use the time, it’s entirely up to you. You may spend precious moments with your family, or find additional investment opportunities.

Have experts – you are giving up the control to people who are more skilled than you in certain areas.

Cons

You are relying on others – this is probably the worst part for the majority of rental property manages. You are putting your trust in people you don’t know.

Outsource management completely

This management strategy involves hiring a property manager or property management company. Many owners feel like they should use their strength in a property selection, then in handling daily operations.

Pros

Independence and freedom – you will be free from daily headaches, and you won’t have to handle the phone calls in two in the morning just because the next door neighbor is playing the music too loudly.

Cons

Expensive – property managers can cost you tens of thousands of dollar a year. The more rental units you own, the bigger the price will be.

Management can harm your business – when you are putting your business and your only source of income into someone else’s hands, you better find a responsible and reliable person. Otherwise, your business may suffer, resulting in losing the tenants. Make sure to have a clear strategy and rigorous application process, to avoid further inconvenience.