Real estate investors often hire a property management company to manage their rental properties, freeing them up from the day-to-day management tasks.
So in this article, we review 7 tasks investors should expect their property management company to accomplish, with help from Jordan Muela’s complete list of property management services.
#1 Tenant Placement
Property management companies are responsible for placing tenants in the property. This involves assisting in the evaluation of the property and establishing an accurate rental rate, taking interior and exterior photos for marketing purposes, offering recommendations on repairs and improvements, gathering information on comparable rental rates, discussing pros and cons of rental policies, and installing a lockbox.
A property manager should also ensure that the property is clean and the landscaping is maintained, market the rental property, work with Realtors, meet prospective tenants for showings, provide tenants with rental applications, and screen applicants.
Once a tenant is selected and approved, the property management company should coordinate the signing of the lease, collect the security deposit and first month’s rent, and perform the move-in inspection with the tenant.
#2 Rent Collection and Financial Services
A property management company is responsible for receipt of rent payments, while also dealing with late payments and enforcing late fees.
The best property management companies provide an online investor portal to facilitate fast and effective communication, and take care of financial duties such as accounting, making payments on the owner’s behalf, maintaining all records, annual reporting for tax purpose, and cash-flow statements.
A property management company takes care of evictions, which includes filing relevant paperwork, representing the owner in court, and working with the police to remove the tenant and belongings from the property.
Regular inspections of the property should be specified in the lease agreement, and can save investors a great deal of money in repairs.
Property management companies should conduct the inspections while observing the general condition and upkeep of the property. Also, the property manager should look for possible maintenance issues that could be addressed in advance to save the investor money, code and lease violations, and safety hazards.
Afterwards, a report with recommendations should be submitted to the investor.
#5 Maintenance, Repairs, and Remodeling
Maintenance and repair (M&R) of an investment property is critical to producing sustainable annual profits. Therefore, having a property management company that effectively maintains the property while managing costs is essential.
Property management companies are responsible for everything relating to the maintenance of the property, including all repairs. They can also be responsible for remodeling the property as needed, especially when it is cost effective by generating higher rents.
For a list of a property management responsibilities relating to maintenance, repairs, and remodeling, refer to Jordan Muela’s complete list.
Services provided by our company, Graystone Developments, assist property manage companies with the maintenance, repairs, and remodeling of investment property.
#6 Tenant Move Out
When a tenant moves out, several tasks must be completed by the property manager, including inspecting the property and filling out reports, allocation of the tenant’s security deposit for repairs, and returning the balance of the tenant’s security deposit.
#7 Turn the Property
After a tenant vacates the property, it must be cleaned, repairs must be made, and any needed upgrades must be completed.
Our company provides services to turn rental properties quickly, so they are back on the market as soon as possible.
Graystone Developments assists real estate investors to rehab newly purchased property and get it on the rental market as quickly as possible. And, we assist investors and property management companies turn vacated rental property quickly and efficiently.
To learn more about our services, including our VIP Client Services, Property Maintenance, and Turn Rental Property service, please see our Services page.