What is Property Management?
The process of managing property that is available for lease by maintaining and handling all the day-to-day activities that are centered around your real estate. This involves seeking out tenants through the process of screening, collecting monthly rental payment, paying property expenses such as taxes, insurance, bills and maintenance.
Who is a Property Manager?
A property manager is a person or firm charged with operating a real estate property for a fee, when the owner is unable to personally attend to such details, or is not interested in doing so.
When Should You Hire a Property Manager?
Although hiring a property manager has many advantages, relying on a property management company is not for everyone. Consider the following factors to determine if hiring a property manager would be a good decision for your business.
You should consider hiring a property manager if:
You have lots of properties or rental units
The more rental properties you own and the more units they contain, the more you are likely to benefit from a management company.
You do not live near your rental property
If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.
You are not interested in hands-on management
Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
Your time is limited
Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if land lording is not your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.
You can afford the cost
Hiring a property management company is an attractive option if you can afford the fees. When interviewing companies, expect to hear quotes ranging between 5% and 10% of what you collect in monthly rental revenue.
You are suddenly inundated with management tasks
If your business is growing, at some point you may find that you need a substantial amount of help to manage everything properly. At that point, it might make sense to hire a property manager.
You do not want to be an employer
If you hire a resident manager or other employees to help with your property, you become an employer. You will have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company is not your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
What are the Roles and Responsibilities of the Property Manager?
Prepare Property for Rental
Your property manager meets with you to evaluate your property and recommend necessary improvements to obtain the optimal monthly rental amount. The manager coordinates any maintenance or repairs based on your approval. We use our extensive network of qualified suppliers to ensure the work is completed on time and at exceptional value. All major costs are to be verified by you before work starts.
Determine Optimal Rental Amount
The property manager provides a complete market analysis looking at comparable properties to determine the optimal monthly rental amount for your property. The manager works with you to agree on the amount.
Tenant Placement
We take a very targeted approach to get your unit rented as fast as possible. The manager meets with you suggesting a marketing program to best attract the right tenants. The communication tools include relevant websites, print, property signage and our corporate website. We pursue all leads and schedule all showings of the property advising you in advance.
Tenant Screening
We take care to get you responsible tenants. We require each potential tenant to complete a detailed tenancy application form. We then verify their current employment and income status, complete all credit checks, and contact the tenant’s previous landlord(s) to verify payment history and care of property.
Rental Property Move In
Your property manager takes the right steps to ensure an efficient move. Collects the security deposit and first month’s rent in the form of certified funds prior to your tenant’s move-in. Prepares all rental and lease agreements. Documents your property’s condition utilizing digital photography and has your tenant complete and sign a “Move in assessment of Condition” report verifying the condition of the property. Instructs your tenant regarding rental payment terms and required property maintenance.
Rental Collections and Disbursements
We make sure monies are collected on time to maximize your cash flow. We promptly collect your rental income from your tenant at the beginning of each month and disburse the rental proceeds to you by the tenth of each month. Your property manager will serve notice to the tenant, and advise you, if rent has not been paid. We coordinate the start of evicting your tenant in the event the rent is not paid to your satisfaction.
Repair and Maintenance
We greatly minimize the cost and time of repairs and maintenance by using our extensive network of proven qualified suppliers. This saves you from searching out suppliers and being charged exorbitant prices. We also provide repair service for any serious issues that may arise. Your property manager handles all requested repairs from tenants assessing their real need and contacts the right supplier. With all major repairs, we consult the owner with the estimated costs for approval. We coordinate the ongoing maintenance, based on the owner’s needs which may include: painting, window upgrades, new flooring and carpeting, electrical upgrades, house cleaning and lawn maintenance.
Regular Rental Property Inspections
We make a thorough inspection of your unit, both inside and outside. This helps us insure your property is being properly cared for, maintained and provide you with peace of mind ownership.
Tenant Evictions / Collections
If rents are not paid, we take the necessary steps to receive payment. If the tenant is still negligent of payment, then with your approval we begin the eviction process and keep you informed of all aspects of the process.
Quarterly Accounting Statements
Each quarter we will email a detailed financial statement showing monies collected and any disbursements that have been made on your behalf such as repairs and maintenance to your online account.
Year End Summary
We provide a year-end summary of your accounts.
What documents would I need to provide?
A copy of the following documents would be required to ensure proper transparency: –
Deed – Shows clear title to the property and that you are the Owner(s).
Two forms of Identification – A valid passport, identification card or drivers permit. Authorization letter from Owner(s) – Allows the property manager to conduct necessary transactions for the property with relevant utility companies on their behalf.
Insurance coverage – To ensure that the premium for the property and listed furniture within are insured from natural or man-made disasters and mishaps.
WASA Bill – Shows proof of address for the property and the owner of the property.
T&TEC Bill – Shows proof of address for the property and the owner of the property.