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 of 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 carry out a detailed evaluation of your property in order to determine the optimal rental rate. This typically involves documenting the interior and exterior with quality photos, offering recommendations on cosmetic repairs and upgrades that will improve return on investment, researching comparables and their current rental rates, and discuss with owners the pros and cons of different policies and restrictions on ownership.
Marketing the property to tenants
A competent property manager must have a lot to offer and be actively involved in the process of recruiting new tenants. This typically means preparing the home for rent, creating listings and marketing the rental online and offline, working with other realtors and leasing agents to find potential tenants, answering calls from prospects for questions and showings. , meet potential tenants throughout the week and weekend for visits. , by providing a rental application in accordance with the law and by collecting the signed application with the application fee.
Filter potential tenants
The last thing a landlord wants is a troublesome or delinquent tenant. A reputable property management company will carefully screen potential tenants, perform the necessary background checks, score the tenant against predefined criteria, and notify both selected and rejected tenants of the final decision. It doesn’t eliminate the risk of having a bad tenant, but it does go a long way to minimizing it.
Oversee tenant move-in
A property manager will provide assistance to tenants during the move-in process. They will draft the tenancy agreement and review its requirements with the tenant to ensure they understand their responsibilities, ensure all necessary agreements have been signed, perform a detailed inspection of the move, and collect the first month of rent and security deposit.
Collect the rent
Property managers are responsible for collecting rents from the property. They should proactively deal with late payments, send pay or severance notices, and apply any late fees specified in the rental agreement.
Evict recalcitrant tenants
A good manager will be ready to handle this unpleasant process in an orderly manner according to the law. They will know how to file the relevant paperwork to initiate and complete an unlawful detention action, represent the landlord in court, and work with law enforcement to remove the tenant and their belongings from the unit.
Provide legal advice
A management firm will be able to advise you in the event of a dispute or litigation against the owner. If necessary, they will refer the owner to a qualified attorney. Most importantly, a knowledgeable manager will understand and adhere to the latest local, state, and federal laws that apply to rental properties, minimizing the landlord’s legal risks.
Regularly inspect the property
Periodic property inspections to identify repair needs, safety hazards, code violations, lease violations, etc., and keep the owner informed of the status of the investment.
Property management companies can provide a wide variety of finance-related services to property investors, including accounting services, annual reports for tax purposes, record keeping, advice on tax deductions, and monthly statements of assets. cash flow showing detailed income and expenses.
Maintain and repair the device
A management company will coordinate with the owner to ensure the property receives necessary maintenance and repairs. Work can be done by their in-house maintenance team or through a network of licensed, bonded and insured contractors who should be vetted for a good price and code-compliant work. They must maintain a 24-hour emergency hotline that tenants can call to request urgent repairs.
Oversee tenant moves
When a tenant is ready to move in, the property manager helps facilitate the process by inspecting the unit, contacting the tenant, paying the balance of the security deposit, cleaning the unit, rekeying the locks and putting the unit back in place. the rental market.
This is not an exhaustive survey, but a fair summary of the services generally provided by residential property management companies.