Navigating and handling multiple properties or rental units can be hectic for property owners. Getting professional help from property managers or a management company can help you in the long run. Property managers are professionals who take responsibility for the daily operations of a rental property on behalf of the owner. They help run your rental units by handling everything from finding tenants to fixing leaks and landscaping. Property owners, real estate investors, and homeowners associations often hire them for tenant screening, lease contracts, rent collection, to stay legally compliant, save time, and deal with tenant headaches. These property management companies or individuals charge a monthly fee, which is around 8% to 12% of the monthly rent. The best estate managers come with credentials like Real Estate Salesperson License or voluntary certifications like Certified Property Manager (CPM) and Residential Management Professional (RMP) that back up their professionalism and expertise in the field.
Some of the pros for hiring a property manager are time saving, expertise in local laws, and reduced vacancy time. Likewise, some of the cons are additional management fees, less direct control, and potential miscommunication. Whether you’re busy, want peace of mind from tenants, or simply live far from your rental unit, hiring a property manager can simplify ownership and management. In this article, we will break down what they do, what qualifications to look for while hiring, how much they cost, and their benefits and drawbacks.
What Is a Property Manager?
A property manager is an individual or a management company hired by a property owner to oversee and manage the day-to-day operations of a unit or real estate. They are usually employed when property owners are unable or unwilling to manage their properties themselves. They act as estate manager or primary contacts between tenants and owners, handling maintenance, repairs, and tenant requests, and overseeing property budgets and finances.
There are four types of property management, and property managers typically take care of residential apartments and single-family homes, commercial offices and retail spaces, and industrial properties like manufacturing buildings and warehouses. As a representative of the property owner, they ensure compliance with local laws and regulations, keep insurance policies up to date, and manage evictions when necessary. Although real estate agents and property managers are not the same, they are required to hold similar licenses in some regions, particularly if they are involved in marketing or leasing properties.
What Does a Property Manager Do?
The main purpose of a professional property manager is to supervise, take good care of the property, and secure reliable tenants who pay rent on time. They also handle maintenance of the property, do light handyman and cleaning work, and resolve tenant concerns and complaints. They act as the owner’s ears and eyes, dealing with issues promptly and taking care of the property professionally. Likewise, property managers handle the full leasing cycle and collect rents, with a focus on protecting the owner’s investment. A property manager’s role is to maintain a steady and hassle-free rental income for the property owners through this process. Here is the list of key responsibilities of a property manager:
Tenant screening and leasing
When hired, their job starts with listing the property on the right platforms to attract quality tenants. They then screen potential tenants by running credit and background checks and past rental behavior. Moreover, they also verify the applicant’s income to ensure they can afford the place, to reduce the risk of payment issues in the future. After selecting a qualified tenant, they draft a lease agreement, coordinate the move-in process, and ensure everything is ready for the new tenant.
Rent collection and financial reporting
Rent collecting and financial reporting are key parts of a property manager’s job, as they handle collecting monthly rent payments, sending reminders to tenants, and enforcing late fees when needed. They use digital platforms and rent portals to make payments easier and transparent. Likewise, they provide regular reports that include income statements, details about owner payouts, and summaries of expenses.
Property maintenance and repairs
Property maintenance and repairs are another key part of a property manager’s job, as they handle routine inspections and schedule preventive maintenance to avoid bigger problems in the future. They coordinate emergency repairs and minimize damage to keep the property livable at all times. Likewise, they work with trusted vendors and contractors to help maintain the property for tenants and boost the overall property value.
Handling tenant disputes and evictions
A property manager acts as the middle ground to address complaints and resolve lease violations promptly and fairly, ensuring issues like damages, noise, and unpaid rent are handled professionally. Similarly, the property manager follows the legal process, providing proper notice and keeping detailed documentation when eviction becomes necessary, representing the property owner in court. They ensure that the process is done by the book to protect both the tenants and the landlord’s legal protections.
Ensuring legal compliance
For a property manager, ensuring legal compliance is a key part of their job. They respond to tenant complaints and resolve lease violations while following the law. This is to make sure both owners and tenants are protected. They follow legal procedures at all times, especially if an eviction becomes necessary, which requires giving proper notice, documenting violations, and handling any required court involvement. A property manager’s goal is to manage these situations professionally without exposing owners to legal risks.
What is the day-to-day role of a property manager?
Property managers are responsible for several tasks daily, like tenant communication, vendor coordination, property marketing, and record-keeping. However, the day-to-day role can vary depending on the size of the property, how many tenants are involved, and whether it’s commercial or residential. For example, a manager handling a small apartment building might have a more hands-on role, while someone handling a large office complex may need more time coordinating with tenants and service providers through a team.
Some of the core responsibilities, regardless of the property type, include communicating with tenants, answering questions, resolving minor issues, and responding to maintenance requests promptly. Similarly, they coordinate repair work, follow up on ongoing maintenance work, and ensure everything goes smoothly. They also handle marketing tasks like scheduling tours, posting available units, preparing or reviewing reports for property owners, and keeping them updated on occupancy, operations, and finances.
Tenant Communication
A property manager maintains regular communication with tenants via phone calls, emails, or social media platforms and responds to general questions about the property. Likewise, they address maintenance requests swiftly and ensure issues are documented and resolved efficiently. When conflicts arise among the tenants or concerns about lease terms, the manager steps in to mediate the problem and find solutions timely manner. This is to keep clear and respectful communications to help build trust and keep things running smoothly.
Vendor Coordination
A property manager handles vendor coordination and works with service providers like electricians, plumbers, and landscapers to keep the property in its optimal condition. They schedule routine and emergency maintenance, supervise the work, and negotiate contracts to ensure it meets quality standards and gets the best value. A property manager acts as the middleman between vendors and owners for handling property-related business. This ensures everything runs smoothly without bothering the tenants.
Property Marketing
Property marketing is a key part of a property manager’s role to attract quality tenants quickly. This role includes listing the property on popular rental or real estate platforms, organizing open houses or virtual tours to showcase the property, and setting competitive prices using local trends and market research. The main goal is to make the property appealing to attract tenants that ensure long-term stability.
Record-Keeping
The property manager’s other key role is record-keeping to maintain accurate and up-to-date documentation for everything related to the property. The essential documents are lease agreements, financial documents, and inspection reports, such as maintenance expenses and rent payment logs. As of now, most managers use digital systems or property management software to keep the records safe, organized, accessible, and compliant with local laws. This makes it easier to track activity, share information with owners, and ensure nothing falls into the wrong hands.
How Much Does a Property Manager Cost?
Most property management companies charge a monthly fee of between 8% to 12% os the monthly rent for ongoing management and a moderate leasing fee. For instance, if your property rents for $1,500 per month, the property management fee would be around $120 to $150 per month. Likewise, some management companies take $100 to $200 per unit for smaller properties or single-family homes. In addition to this, some may charge a leasing fee after finding a new tenant, which is often equal to 50% to 100% of one month’s rent and 10-20% for maintenance bills for handling repairs and scheduling vendors.
However, the actual cost of property management fees can vary widely based on location, as high-demand cities often charge more than rural areas. Nonetheless, property type also plays a crucial role since a commercial property or multi-unit building typically costs more to manage than a small or single-family home.
- Cost Models
As mentioned above, most property managers charge 8-12% of the monthly rent, while some charge a fixed monthly fee for smaller properties or single-family homes. Likewise, some managers take 10-20% for repair bills and coordinating services, and even a one-time fee up to $250 to lease a new property.
- Pricing Factors
The cost can vary based on location, property type, services included, and vacancy rate. High-demand areas like New York and San Francisco often charge more in comparison to smaller or rural cities. Likewise, commercial buildings or multi-units and full-service management is pricer. Moreover, some management companies charge even if the property is empty.
- Example of Cost Calculation
Imagine if you own a single-family rental in Texas and rent it at $2,000 per month. The managing company charges 10% monthly, i.e., $200/month, plus a one-time leasing fee, i.e, 75% or $1,500. The annual cost without including repairs can come around $3,900/year ($200×12 +$1,500).
- Tax Deductibility
Property management fees are tax-deductible as operating expenses. Hence, you can write off monthly fees, leasing commissions, and maintenance charges while filing your taxes. This helps reduce overall taxable rental income.
What Certifications Should a Property Manager Have?
It is important to have the right certifications that prove your skills, professionalism, and knowledge to succeed in property management. Certifications and credentials are mandatory in states where a real estate license is legally required to manage rental properties. States like Florida, California, and New York require property managers to hold a Real Estate Salesperson License or be supervised by a licensed broker to ensure that managers understand ethical business practices and local property laws.
On the other hand, other property manager qualifications are voluntary certifications like Certified Property Manager (CPM) from the Institute of Real Estate Management (IREM), Residential Management Professional (RMP) from the National Association of Residential Property Managers (NARPM) help boost managers’ credibility and professional standing. These certifications offer training in marketing, accounting, maintenance, and legal compliance. In short, voluntary certifications show dedication and expertise, while mandatory licenses are essential in some regions to operate legally. When managers obtain both certifications, it not only opens doors to more opportunities but also builds trust with tenants and clients.
What Are the Pros and Cons of Hiring a Property Manager?
For property owners who are juggling multiple units at once or simply living far from the property, hiring a property manager can be a great solution. The property manager benefits are taking over daily responsibilities like tenant handling, rent collecting, and maintenance, however, it comes with a price and may not be the right fit for everyone. Whether you’re managing a commercial building, multiple units, or a single-family rental, hiring a property manager solely depends on your goals and availability. Here is a comparison of the pros and cons to help you decide the right move:
Pros of Hiring a Property Manager
- Time Saving and Reduces Stress: Property managers handle tasks like rent collection, repair coordination, and tenant issues, freeing you up for other important work.
- Expertise in Local Laws: They stay updated on landlord-tenant laws and help you stay compliant with local laws, which reduces the risk of legal trouble.
- Professional Tenant Screening: They use proven screening systems to find long-term and reliable tenants, often leading to better-quality tenants and fewer problems down the road.
- Reduced Vacancy Time: Property managers tend to fill vacancies more efficiently than usual landlords, with their experience in setting competitive rent prices and marketing rentals.
- 24/7 Maintenance Response: Tenants can call managers 24/7 for quick response and repair requests as they work with a network of trusted contractors and service providers.
Cons of Hiring a Property Manager
- Management Fees Add Up: Most property managers charge between 8% to 12% of monthly rent, along with extra fees for lease-ups or repairs. This can reduce your net income.
- Less Direct Control: As a property owner, you’ll be removed from decision-making for certain things and may not agree with how managers handle certain situations.
- Potential Communication Gaps: When relying on a third party, information can get lost or delayed, causing miscommunication at times.
- Variable Quality: As not all property managers are equally skilled, hiring an inexperienced manager could lead to mismanagement, financial loss, and poor tenant experiences.
- Long-Term Contracts: You may get stuck in long-term contracts with management companies where you’re not satisfied with their service.
Los Angeles Property Management: Your Local Partner for Stress-Free Rentals
Los Angeles is a city of endless opportunities, along with a unique set of challenges. From Venice Beach to Silver Lake, each neighborhood has its own compliance requirements, rental trends, and tenant expectations. Property owners in Los Angeles can face a complex mix of city-specific challenges like strict rent control laws, high tenant turnover, frequent inspections, and evolving housing regulations. This can make managing property feel like a full-time job, especially for those who live far away.
This is where a local property manager comes in handy. They offer tailored expertise, with the help of their experience in the LA market, pricing, rental competition, and resolving tenant issues efficiently. These management companies are optimal for multiple property owners living outside the city, as they work with trusted local vendors and stay up to date with changing laws. That’s why hiring a Los Angeles-based property manager is a game-changer. With the help of Los Angeles Property Management, local knowledge becomes your biggest advantage that minimizes stress, protects your rental income, and ensures legal compliance. With Skybridge Property Group, this asset becomes a strategic advantage, enhancing your rental business through smart insights, efficient operations, and reliable support every step of the way.
