A Property Manager
Right now, landlords are under a lot of pressure. They live between tenants who are behind in paying rent that could result in evictions and tenants demanding rent forgiveness as a result of the lockdowns and job losses due to COVID 19. Being a landlord is one of the toughest occupations in the world. Renting can be the biggest hassle of your life. Many owners of rental properties want to handle the job of landlord. It is much cheaper in terms of dollars of expense. Soon a real estate investor will have to take on the responsibility of landlord or hire a property manager.
A landlord can spend 40 hours a week running all over the city, handling blocked toilets, fixing A/Cs, and solving maintenance problems. Then there is finding tenants, vetting them, and kicking out tenants who don’t pay. Once in a blue moon, you might get a vacation.
A Property Manager
In any society, there are good people, bad people, and indifferent people. In the renting world, you shake your head at how some tenants punch holes in the wall, snuff cigarettes on the countertop, and allow their cute little puppies to eat the carpeting and furniture. Then some landlords are unreasonable, unapproachable, and are interested only in the timely payment of rent. For this reason, rules and regulations abound, and the law protects both landlords and tenants.
What Does a Property Manager Do?
The recent article in Inman cites five main things unique to a property manager:
- Finds the right tenant. The cost of choosing the wrong tenant is steep — in terms of time, money, and, in some cases, legal difficulties. Finding and placing a qualified tenant demands both diligence and knowledge. A qualified tenant is a tenant who passes a background and credit verification check as well as receiving a good reference from current and past landlords and employers. Finding a qualified tenant also involves setting a rental price and advertising.
- Creates a good lease. After successfully qualifying the tenant’s application, it’ll be the property manager’s responsibility to draw up a lease that is both fully compliant with the law and 100 percent enforceable.
- Fixes things that break. If something breaks, leaks, bursts, or wears out — it’ll be the property manager’s responsibility to determine the cause of the problem and get it fixed.
- Collects rent and handles evictions. In the event the tenant stops paying rent, the property manager will attempt to collect it by sending written correspondence and making phone calls. If the collection efforts fail, the property manager will determine that it’s time to evict. The property manager will have to send a legal notice instructing the tenants to pay or vacate the premises. After that, it’ll be time to file a lawsuit in court.
- Keeps track of income and expenses. Finally, there’s the task of accounting. Tracking the income and expenses for a rental property isn’t just a good financial habit — it’s the law.
What Does a Property Manager Cost?
The average property manager charges somewhere between 50 and 100% of the first month’s rent as a finder’s fee and then 8 to 10% of the monthly rent. A renewal of an existing tenant would not generate a finder’s fee. If you are fighting for income, a property manager can feel like a giant stone around your neck.
But, a great property manager enables you to stay on the right side of the law.
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