“Owning a rental property might sound like a cool investment, but there is more that goes into it which is management. That is why many property owners enlist the help of property management companies to take care of their properties and any other things involved, Ryan Weir notes.
A property management company plays a crucial role in the real estate industry by acting as a mediator between property owners and tenants. Their primary responsibility is to ensure the smooth operation and maintenance of properties on behalf of the property owners. From marketing and tenant screening to maintenance and financial management, property management companies handle a wide range of tasks.
Rental properties also come in different shapes and sizes. There are single-family homes, condos and coops, shopping centers, private home communities, multi-family properties, townhouses, vacation homes, and so on. That is why every landlord should have a property manager in their arsenal to ensure their properties stay in shape for years and handle other business-related tasks, Ryan Weir explains.
In case you don’t fully understand the responsibilities of a property management company or if you need one, Ryan Weir explores their various responsibilities and importance. Ryan Weir is the Managing Director of a renowned property management company, Propertyscouts in Auckland. Here is a rundown of property management company responsibilities:
Property Marketing and Advertising:
One of the key responsibilities of a property management company is to market and advertise vacant properties to attract potential tenants. They utilize various channels, such as online listings, social media, and local advertising, to showcase the property’s features and attract a suitable tenant base. Effective marketing strategies help minimize vacancy periods and ensure a steady stream of rental income for property owners.
Tenant Screening and Selection:
A property management company is responsible for tenant screening and selection. They conduct thorough background checks, including credit history, employment verification, and rental history, to ensure that prospective tenants are reliable and financially capable of meeting their rental obligations. Proper screening helps minimize the risk of late payments, property damage, or eviction issues.
Lease Agreement Preparation and Signing:
Preparing and managing lease agreements is another crucial responsibility of a property management company. They draft legally binding contracts that protect the rights and interests of both the property owner and the tenant. The lease agreement outlines the terms and conditions of the tenancy, including rent amount, payment schedule, lease duration, and property rules. Property managers ensure that all necessary documents are signed and provide copies to all parties involved.
Rent Collection and Financial Management:
Property management companies handle the collection of rent from tenants on behalf of the property owners. They ensure that rent is paid on time and in the correct amount. In case of late or non-payment, they follow the appropriate legal procedures to resolve the issue promptly. Property managers also maintain detailed financial records, including income and expense statements, and provide regular financial reports to property owners.
Property Maintenance and Repairs:
Maintaining the property in good condition is an essential responsibility of a property management company. They schedule regular inspections to identify any maintenance issues and promptly address them. Property managers coordinate repairs and maintenance services, ensuring that they are carried out by reliable and licensed contractors. From fixing plumbing issues to handling landscaping and regular cleaning, property managers ensure that the property remains attractive and well-maintained.
Handling Tenant Issues and Complaints:
A property management company acts as a point of contact for tenants, addressing their concerns and resolving any issues that may arise during their tenancy. Whether it’s a maintenance request, noise complaint, or any other matter, property managers strive to provide timely and effective solutions. They maintain open lines of communication with tenants to foster positive relationships and promote tenant satisfaction.
Property Inspections and Compliance:
Property managers conduct regular inspections to ensure that tenants are adhering to the terms of their lease agreement and that the property is in compliance with relevant laws and regulations. They check for any lease violations, unauthorized occupants, or damages and take appropriate action when necessary. Property managers also stay up to date with local housing laws and regulations to ensure that the property remains compliant and avoids legal issues.
In unfortunate cases where eviction becomes necessary, property management companies handle the legal procedures and eviction process on behalf of the property owner. They follow the local laws and guidelines to ensure a smooth and lawful eviction process while protecting the interests of the property owner. Property managers handle the necessary paperwork, court appearances, and tenant communication during the eviction process.
An emergency can pop up at any time and property managers need to be prepared for surprises. Property management companies are responsible for handling emergencies and ensuring the safety and well-being of tenants. They have protocols in place to address emergencies such as fires, floods, gas leaks, earthquakes, or severe weather conditions. These are things that could be life-threatening or can pose a threat to property and tent safety. Hence, property management staffs are proactive in emergencies to minimize damage and ensure everyone’s safety.
The responsibilities of a property management company are numerous and one that landlords can do without handling daily activities. Plus, before enlisting the help of any property management company, ensure they have what it takes: experience, knowledge, and license from the state. You want to entrust your properties to the hands of the best, Ryan Weir advises.