Property managers are hired by landlords and real estate investors when they are unable to manage their property well. Hiring a property manager is ideal for those who live far from their property. Being a landlord is not an easy job. There are a lot of things to look after. Therefore, having a manager to do all the stuff is the best solution. A Manager needs to maximize profit and minimize loss significantly. They need to work hard on the property and bring it to the top of the market.
Here are some of the major responsibilities of a real-estate property manager.
- Marketing of property
A property manger should firstly have a sound knowledge of marketing. A manager should know about operating expenses. In order to set the rental rates, the manger should know about competitive rental properties. Property manager are in charge of managing all the profit and loss, income taxes, and financial statements. He can also adopt certain marketing strategies and also recommend them to the owner to maximize profit and rent rates.
- Handling the financial matters
He will need to make an annual operating budget. In the budget, incomes and expenses of the property will be analyzed. It is the responsibility to reduce the expenses by using strategic thinking and planning. Manager will be in control of the rent system and the rental rate of the property will be set by him after doing market research and discussing with the owner.
- Dealing with tenants
Just knowing about tenants is not enough. Manager is responsible for collecting rent. He will also deal with their complaints such as any problem of electricity, water or etc. According to the lease requirement, property manager will go over and check if the tenants are following the rule or not. They have to satisfy the tenants. But the difficult task of giving eviction notices due to non-payment or rule breaking also have to be done by the manager.
- Responsibility of rentals
Satisfying the tenants is the second thing. The first thing a property manager needs to do is advertise the property and find tenants. He will need to post ads in newspaper and if possible on TV. The sign of “For rent” is also bought and placed by them. Other effective ways for advertising both commercial and non commercial properties are direct mail, billboards, Internet, and Radio. They can also get recommendation by previous satisfied tenants. This helps attract more people.
- Risk Management
A real estate property manager must have the ability to make both the landlords and tenants interest meet. His role is to deal with all the money related work that was initially the responsibility of the landlord. Now the manager has to take care of all sensitive money related issues. The manager also has to deal with the tenants. He will be responsible of making the lease contract with them. Due all of the work mentioned, it is compulsory for the manager to be equipped by all the necessary skills. This way he will keep the landlord and the tenants happy.
- Additional work.
There is a lot of additional work other than just managing the tenants and making financial reports. The manager has to deal additional paperwork and budget reports. He is responsible for making a monthly budget. He will tell the tenants about it so that they can do all the monthly maintenance work under budget. The manager needs to keep a record of the following things as well.
- Signed leases.
- Monthly or yearly maintenance requests.
- Costs of repairs.
- Record of all the repairs done.
- Rent collection.
- File taxes.
- Insurance costs and etc.
These are some of the main responsibility of a property manager. The person needs to have the skills and mindset to do the work in an efficient way.