Most of the people use the terms “property manager” and “landlord” interchangeably.
Landlord may not always engage with property managers, but if there is a property int the picture, there is also a landlord somewhere behind the scenes. If you are a landlord, you should be be conscious of how a property manager can help you.
There are some similarities between property mangers and landlords, but the major difference is ownership in a property. Landlords own a property while property manger is hired by property owners to manage and supervise their properties. In addition, the managers get paid from provide services to the landlord, either a percentage of the rents that they collect or a flat fee. While a landlord doesn’t get paid a wages and will only can make money from his rentals.
Some of the landlords are just owning the few rental properties and get the passive income from it, however, they are ineffective in managing their properties. The reasons could be that they don’t have much time to upkeep for their rental properties or they are less likely dealing with tenants (collecting rent or responding in a timely manner to repairs the property and complaints).
While a property manager takes on the landlord’s responsibilities which they spend more time in adding an element of professionalism to fix the awkward relationship between landlord and tenant.
When a landlord hires a property manager, the manager will takes on the majority of the landlord’s responsibilities. They usually do some advertisement for vacant units to rent out and show the properties to the potential tenants, they also take application from prospective renters as well as doing credit check on them.
A property manager is responsible for collecting the rents from tenants, subcontracting out repairs as needed, handle the issues of tenants don’t pay their rent on time and not paying the utilities on the properties. Besides, they also provide the landlord with s loss statement and monthly profit as well as checking for the less expenses, manager’s fee and rents collected.
4. Interaction with Tenant
Property managers are expert broker. They represent the landlord to dealing with current or prospective tenants. Through a formal agreement with the landlords, property mangers understand what is their duty and how much authority they have in supervise the properties of landlord. If a matter that happened in outstrip their responsibilities or authority, property mangers will pass on the tenant’s requests and concerns to the landlords and follow the landlords’s instruction.