Management companies offer a wide range of property management services to investors. The needs of each real estate investment may be different and the exact service offering from each company will vary, but here is an overview of the main services offered by residential property management companies.
Determine the best rental rate
A manager will perform a detailed evaluation of your property in an effort to determine the optimal rental rate. Typically, this involves documenting the interior and exterior with quality photos, offering recommendations on repairs and cosmetic improvements that will improve ROI, researching comparables and their current rental rates, and discussing with property owners the pros and cons of different policies and restrictions on the property.
Market the unit to tenants
A competent property manager should have a lot to offer and be actively involved in the process of recruiting new tenants. Typically, this means preparing the home for rental, creating ads and marketing the rental online and offline, working with other real estate and leasing agents to find prospective tenants, answering calls from prospective tenants for questions and showings, meeting with prospective tenants during the week and weekend for showings, providing a compliant rental application, and collecting the signed application with the application fee.
Prescreen potential tenants
The last thing any landlord wants is a problematic or delinquent tenant. A property management company of its own worth will carefully screen prospective tenants, perform any necessary background checks, qualify the tenant based on pre-defined criteria, and inform both the selected and rejected tenants of the final decision. This does not eliminate the risk of having a bad tenant, but it goes a long way in minimizing it.
Supervises the celebration of the move
A property manager will assist tenants through the move-in process. They will draft the lease and review its requirements with the tenant to ensure they understand their responsibilities, make sure all necessary agreements are signed, perform a detailed move-in inspection, and collect the first month’s rent and security deposit.
collect rent
Property managers are responsible for collecting rent on the property. They must proactively deal with late payments, send payment or resignation notices, and enforce late fees specified in the lease.
Expel die-hard supporters
A good manager will be prepared to deal with this unpleasant process in an orderly manner in accordance with the law. They will know how to file the proper paperwork to initiate and complete an unlawful detainer action, represent the landlord in court, and work with law enforcement to remove the tenant and their possessions from the unit.
Provide legal advice
A management company will be able to provide advice in the event of a legal dispute or litigation brought against the owner. If necessary, they will refer the owner to a qualified lawyer. Most importantly, a competent manager will understand and comply with the latest local, state and federal laws that apply to rental properties, minimizing the legal risks for the owner.
Inspect the property regularly
Periodic property inspections to identify repair needs, security risks, code violations, lease violations, etc., and keep the owner informed of the status of the investment.
manage finances
Property management companies can provide a wide variety of financial-related services to real estate investors, including bookkeeping services, annual reports for tax purposes, record keeping, advice on tax deductions, and monthly cash flow statements showing itemized income and expenses.
Maintain and repair the unit.
A management company will coordinate with the owner to ensure that the property receives the necessary maintenance and repairs. The work can be done by your in-house maintenance team or through a network of licensed, bonded, and insured contractors, who must be vetted for good prices and code-compliant work. They must maintain a 24-hour emergency hotline that tenants can call to request urgent repairs.
Supervises the move
When a tenant is ready to move out, the property manager helps facilitate the process by inspecting the unit, contacting the tenant, refunding the balance of the security deposit, cleaning the unit, rekeying the locks, and putting the unit back on the market for rent.
This is not an exhaustive survey, but it is a fair summary of the services typically performed by residential property management companies.