A property manager is an individual or a company that is hired by property owners (landlords) to oversee the day-to-day operations of their rental properties. These individuals or companies are responsible for everything from finding new tenants to handling maintenance requests and collecting rent. In this article, we will discuss the legal responsibilities of property managers and what it takes to become one.
Property Management 101
Property management is a complex field that involves overseeing the operation, maintenance, and leasing of real estate properties. It is the duty of property managers to guarantee consistent rental income while prioritizing the satisfaction of tenants. Their job includes finding new tenants, screening them, setting rent, resolving tenant concerns and complaints, dealing with maintenance issues, property budgeting, and keeping the properties and tenants cared for professionally.
Whether you are a property owner looking to hire a property manager or someone considering a career as a property manager, it is essential to understand the responsibilities and legal obligations that come with this position.
The Legal Responsibilities
Property managers are required to perform many tasks and duties, and with that comes legal responsibilities. Property managers must comply with state and federal laws and regulations that govern the management of real estate properties. Some of the legal responsibilities of property managers include:
1. Complying with Fair Housing Laws
Property managers must comply with fair housing laws when dealing with potential tenants. These laws prohibit discrimination against any individual or group based on race, color, religion, national origin, sex, familial status, or disability. Property managers must follow these laws when screening tenants, showing apartments, setting rent, and handling any tenant concerns or complaints.
2. Setting Rent
Property managers are responsible for setting rent for rental properties. They must research the property and the surrounding area to determine a competitive and fair price for rent. This ensures that the property owner generates the maximum rental income while keeping the property occupied.
3. Finding New Tenants
Property managers are responsible for finding new tenants when there are vacant units. They must advertise the property, show the property to potential tenants, and screen them to ensure they are qualified renters. This screening process may include verifying employment, checking credit history, and conducting background checks.
4. Maintaining the Property
Property managers must able to take care of the many aspects of single properties, apartment complexes, and commercial properties, including building maintenance, work orders, on-site inspection, and the upkeep of the property’s common areas. They must ensure that maintenance requests are dealt with promptly and professionally to keep tenants happy.
5. Dealing with Tenant Concerns
Property managers are responsible for resolving tenant concerns and complaints. They must ensure that all concerns are dealt with promptly and professionally and that tenants feel heard and cared for. This is critical in keeping tenants happy and maintaining a high occupancy rate.
6. Collecting Rent
Property managers are responsible for collecting rent from tenants. They must ensure that rent is collected on time and that tenants understand the consequences of late payments. Property managers must also handle any eviction proceedings if necessary.
Becoming a Property Manager
To become a property manager, one must typically have a bachelor’s degree in a related field such as real estate, property management, or business administration. However, some property management firms may hire property managers without a degree as long as they have relevant experience in the field.
There are many property managers who start their careers by working as an assistant or on-site property managers. This allows them to gain hands-on experience and learn the day-to-day operations of managing a single property or a portfolio of properties.
Pros and Cons of Hiring a Property Manager
Hiring a property manager can be a good idea for real estate investors who have multiple properties or live far from their properties. Property managers often take care of the many aspects of property management, including finding tenants, handling maintenance requests, collecting rent, inspecting properties, and dealing with any tenant concerns. This can free up time for property owners and help them generate rental income without having to be involved in the day-to-day operations of the property.
However, hiring a property manager also comes with costs. Property management companies typically charge a management fee, which can either be a flat fee or a percentage of monthly rent. Property owners must also ensure that they hire a reputable and experienced property manager who will follow all laws and regulations and keep their properties in good condition.
The Role of Property Management Companies
Many property managers work for property management companies. These companies provide property management services to property owners and investors. The benefit of hiring a property management company is that property owners do not have to worry about the day-to-day operations of their properties. They can trust that the property management company will handle everything. Property management companies can also provide customizable property management services.
In addition, property management companies may have more resources and experience than individual property managers. This can be especially beneficial for property owners with large portfolios of properties or those who own commercial properties such as malls or industrial properties.
Final Thoughts
Property management is a critical aspect of real estate investment. Property managers must be able to keep the property occupied, generate rental income, and keep tenants happy. They must also comply with state and federal laws and regulations that govern the management of real estate properties.
Whether you are a property owner looking to hire a property manager or someone considering a career as a property manager, it is essential to understand the responsibilities and legal obligations that come with this position. Property managers must ensure that they provide professional and reliable services, keeping the property owner’s investment secure and generating income while keeping the tenants happy.
In summary, property managers are responsible for overseeing the day-to-day operations of rental properties, finding new tenants, handling maintenance requests, collecting rent, and resolving any tenant concerns. They must comply with fair housing laws, set rent, maintain the property, and deal with any tenant concerns or complaints. Hiring a property manager or a property management company can be beneficial for property owners who have multiple properties or live far from their properties. However, it is crucial to ensure that property managers follow all laws and regulations and provide professional and reliable services.