A good property management company can easily become one of your greatest assets.

What Does a Property Manager Actually Do?

The following is a comprehensive list of the tasks property managers commonly perform for owners. You may only need some of these property management services, and the property management companies you interview may offer more or less than what is listed here.

Property managers evaluate your property and determine an accurate rental rate.

• They provide detailed documentation of the interior and exterior, including photos.
• They offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI.
• They gather data on rental rates in the area and work with owners to determine the optimal rental rate. Rent research will vary, but it should include looking at recently rented comparables according to size and type.
• They discuss the pros and cons of different policies, such as accepting pets, lawn care and pool care (if applicable).
• They install a lock box.

Property managers market your property for rent.

• They prepare your home to attract tenants.
• They create ads tailored to the property and advertising medium. Some commonly used mediums include MLS, Zillow, Trulia, HotPads, Realtor.com and Rent.com.
• They work with other Realtors® and leasing agents to find tenants.
• They provide a 24-hour hotline where prospective tenants can listen to detailed information about the property.
• They field calls from prospects for questions and viewings
• They meet prospective tenants for showings throughout the week and weekend.
• They provide prospective tenants with rental applications that are legally compliant with fair housing laws.
• They collect applications and application fees.

Property managers perform tenant screening and selection.

• They perform a background check to verify identity, income, credit history, rental history, etc.
• They grade renters according to predefined tenant criteria.
• They inform prospective tenants who are turned down.

Property managers help tenants move in.

• They draw up leasing agreements.
• They confirm move-in dates with tenants.
• They review lease guidelines with tenants regarding items including rental payment terms and required property maintenance.
• They ensure that all agreements have been properly executed.
• They perform detailed move-in inspections with tenants and have them sign a report verifying the condition of the property prior to move-in.
• They collect the first month’s rent and security deposit.

Property managers collect the rent.

• They take in payments and turn them around to you.
• They hunt down late payments.
• They sending out 3-Day Notices.
• They enforce late fees.
• They issue 7-Day Notices to cure the violation of, or immediately terminate, the lease.

Property managers handle evictions.

• They file relevant paperwork to initiate and complete an unlawful detainer action.
• They represent owners in court.
• They coordinate with law enforcement to remove tenants and their possessions from your property.

Property managers handle many legal matters.

• They advise in the event of a legal dispute or litigation.
• They refer owners to a qualified attorney when necessary.
• They make sure that you understand and abide by the latest local, state and federal legislation regarding renting and maintaining rental properties.

Property managers handle property inspections.

• They perform periodic inspections (inside and outside) on a predefined schedule, looking for needed repairs, safety hazards, code violations, lease violations, etc.
• They send owners periodic reports on the condition of their property.

Property managers provide financial services.

• They provide accounting property management services.
• They make payments on behalf of the owner (like HOA dues, if applicable.)
• They provide detailed documentation of expenses via invoices and receipts.
• They maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.).
• They provide annual reporting, structured for tax purposes, as well as required tax documents, including a 1099 form.
• They advise owners on relevant tax deductions related to their rental property.
• They provide easy-to-read monthly cash-flow statements that offer a detailed breakdown of income and itemized expenses.

Property managers handle maintenance, repairs and remodeling.

• They provide and oversee an in-house maintenance crew.
• They establish a preventative maintenance policy to identify and deal with repair needs.
• They provide a network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that’s up to code.
• They assign jobs to different parties (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
• They maintain outdoor areas.
• They maintain and monitor a 24-hour emergency repair hotline.
• They handle larger renovation or rehab projects.

Property managers handle tenant move outs.

• They inspect the unit and fill out a report on the property’s condition when the client moves out.
• They provide tenants with a copy, as well as estimated damages.
• They return the balance of the security deposit to the tenant.
• They forward any part of the owner’s portion of the tenant deposit to the owner, or hold it in owner reserves for repairs.
• They clean the unit and perform and needed repairs or upgrades.
• They re-key the locks.
• They put the property back on the market for rent.

This isn’t intended to be a comprehensive list of property management services, but it should give you a fair idea of the scope of a property management company’s activities.

At this point you may be thinking, “Okay, so that’s what they can do. But how does all of this benefit me and relate to the big picture of my real estate investment strategy?” That’s the topic of our next article.

* * *

The Realty Medics are the nation’s leaders in “Rocket Science Renting”: Rocket Science Renting is about keeping your life simple by letting someone else handle the complex work of property management for you. It’s knowing that your property is running smoothly, with no hiccups or glitches. It’s hyper-responsive customer service that gives you property management peace of mind. It’s advanced technology that could only be designed by a former NASA engineer like our owner, Ben Sencenbaugh. And it’s knowing that you’re always getting maximum value and ROI for your investment.