Goldenbee Properties

Day to Day Job Responsibilities of a Property Management Company

Getting a good tenant is a tough job for all property owners. Property management services are of enormous assistance in selecting the right tenant for your rental property. Property management companies can advertise your unit in an effective way, so as to attract the best prospective tenant.

After performing background checks, verifying identity, income, employment, credit history, rental history and much more, the property management firm finalizes the tenant’s move-in. They work out all technical paperwork with the tenant and a leasing agreement is settled upon. All details within the lease agreement are properly reviewed by the owner, the management staff and the tenants and the lease is signed by all parties.

Before the tenant moves in, the management firm collects the the first month’s rent and the security deposit. After this, it becomes the duty of the management staff to keep track of the rents received.

They hunt down late payments. They even send pay notices to the tenants and have the right to send 3 day notices to pay or quit. These firms can also impose late payment fees upon the tenant, as this surely results in more punctual payment of rent.

The property management firms go about periodical inspections of the rental property, looking for repairs, safety hazards, and checking for any code violations or lease violations. This always forces the tenant to be more responsible with the property and the rules and regulations of the management firm. The property managers also send periodical reports on the condition of the property to the owners, keeping them updated.

The property management firm takes care of all the finances on behalf of the owners. They can also make necessary expenses payments for such things as utilities, HOA dues and insurance. Detailed financial reports are provided to the owner on a monthly basis and annual reports are also made available during tax season. The expert staffs are quite knowledgeable about tax laws and are capable of advising upon effective tax deductions methods related to the property.

Property management services have proven their effectiveness repeatedly, making life easy for the owners and also providing better services for your tenants.

Whether you own a small apartment or large premises, property management will be able to save you a fortune in expenses as well as stress. Despite the fact that many property owners think that they can handle all aspects of managing a property without the help of experts, it is all too often much more difficult than it appears, and to ensure effective management of resources, property owners need to be careful about hiring inept fly by night companies who are not equipped to manage properties.

1. Residential properties are able to extend their life-span considerably

Residential apartments, especially those that date back to the 1970’s and thereabouts, are able to stay maintained and well-kept with proper property maintenance and management. From simple things such as replacement of floors, taps or windows, to full renovation and restoration of older flats, properties are able to get a new lease on life, making them solid investments that will attract tenants year after year. With so many new apartments on the market, older apartments are often bypassed for trendier properties – however with regular renovation and upkeep, older blocks are able to continue keeping up on the highly competitive property rentals market.

2. Disputes and other admin tasks are handled effectively

Property owners no longer have to deal with ongoing disputes about rent increases, leases and deposits, as management companies are able to deal with all admin and related issues on the owner’s behalf, from concerns about property development to any other issues that may arise. Many landlords have full-time jobs in addition to managing their property, and face endless problems dealing with tenants at all hours of the day – something which eventually leads to service levels dropping as issues build up. A good indication of a reputable management company is the way that they handle disputes and the effectiveness of their operations. With the right management company, not only will property owners cut down on the amount of concerns that they need to deal with, but future disputes will be minimized with property management solutions and services that are provided by the outsourced company.

3. Property experts will be able to save you on costs

Many landlords avoid hiring property management companies as they are concerned about forking out to pay for management services. In the long run however, these companies can actually help save costs – with excellent contacts on repair services, and admin kept up to date, things run a lot more smoothly, minimizing on wasted time and keeping costs down by carefully managing funds. Many management companies are also able to negotiate discounts with bulk wholesalers, to help you save even more on contracting costs and supplies for renovations.

Choosing the Right Property Manager

Many property investors will choose to manage their own properties, especially if they live within a short distance. However, for many investors it may not be feasible to take on the management of their investment properties, especially if they are located in a different state. In these cases, they may appoint a property manager to take care of the affairs concerning the rental and management of the properties in return for a monthly fee.

The benefits of appointing a property manager can easily outweigh the costs. A good manager will always communicate effectively with the owner under all circumstances .The tasks and duties of a property manager are wide ranging and will vary depending on the requirements of the property owner. Here is a list of the some of them:

• Advertise for and screen (credit checks, contact referees) potential tenants
• Collect initial bond/security payment
• Collect monthly rents
• Arrange any necessary repairs
• Periodic property inspections and inventories
• Pay workmen, gardeners, and other bills
• Make regular rental payments to the landlord
• Contact landlord upon tenants giving notice to vacate property
• Work with landlord to arrange for repairs
• Issue relevant notices and letters to tenants
• Provide rent and expense statements to landlord

The best way to screen a number of property managers is to ask them a series of pre-defined questions. Some owners prefer to do this in a face to face interview; others are content with perhaps a phone call.
So what questions would you need to ask? There are a few different aspects of property management that need to be looked at and so I’ve categorized some possible questions accordingly.
Fees and Service:

• What monthly fees do you charge?
• How many properties do you manage?
• Do you charge leasing fees?
• How often do you carry out inspections?

Relationship:

• How often are payments to landlords made?
• Under what circumstances do you contact a landlord?

Tenants:

• How do you find and screen prospective tenants?
• How often do you collect rent?
• What is the typical notice period?
• How do you deal with non-payment of rent?

Maintenance:

• What action is taken if a tenant was to damage the property?
• How do you manage minor and major repairs?
• How long have you been dealing with your preferred tradespeople?

This is just an example of the duties carried out by a property manager. Ultimately, a good property manager is not the one that charges the lowest fees but the one who can be efficient in all realms.