What Are the Responsibilities of a Property Management Company?

1. TENANT SCREENING AND SELECTION 

If you’re a landlord, you may be curious about what exactly a property management company does. The goal of hiring one is to take the stress and time-consuming tasks off your plate, ensuring your property is well taken care of. 

One of the key responsibilities of a property management company is tenancy management. This includes running credit checks, checking rental references, and doing background checks to find the best fit for your property. Some property management companies choose the first eligible tenant, while others select the best from a pool of applicants. 

It’s important for property management companies to have a written rental criteria that outlines their tenant selection process. This helps to prevent any Fair Housing violations and provides transparency for both the landlord and tenants. 

Property managers also draft leases and make any necessary modifications. They generally have a standard lease that all tenants must sign, including any required disclosures and special provisions, such as pet policies or responsibility for utilities.  

2. MARKETING AND LEASING

The initial steps taken by a property management company are critical to ensuring a smooth and efficient process. The company should conduct a thorough walkthrough of your property, identifying any necessary repairs and updates to improve the property’s appearance and marketability. 

Once the property is in tip-top shape, the property manager will handle the marketing aspect of your home. This includes taking professional photos, creating videos, and posting the property on various websites and listing platforms. The goal is to attract quality tenants and rent the property as quickly as possible. 

A good property management company has experience in setting the right rental price for the market. They conduct a rental analysis, taking into consideration the location, size, and features of your home, to determine the most competitive rent. The company then posts the listing on various relevant websites. 

The final step in the process is tenant selection and lease drafting. The property management company is responsible for choosing the best tenant for your property based on established criteria and drafting a standard lease. By handling all these tasks, you can rest assured that your property is in good hands, freeing up your time and reducing stress. 

3. MAINTENANCE

They handle all aspects of maintenance at your property, from the initial repairs and upgrades to keep it in top shape, to ongoing maintenance requests. 

A good property management company has a network of trusted vendors to handle any repairs that may come up. Some even have their own maintenance team, with a contractor’s license, to handle any issue that may arise. With a streamlined process for handling maintenance requests, whether they are urgent or not, your tenants can easily submit a request, and the manager can take care of it promptly. 

At most property management firms, there’s a simple and convenient way for tenants to submit maintenance requests, including emergency situations outside of normal business hours. With these processes in place, you can rest assured that your property is in good hands. 

4. RENT COLLECTION AND OTHER FINANCIAL ASSISTANCE

Property management companies rent from tenants and ensure that everyone is paying on time, even enforcing late fees if necessary. 

If a tenant refuses or neglects to pay rent, the property manager is responsible for starting the eviction process. They may have an attorney to assist them. 

Once the rent is collected, the property manager deducts their management fee and any miscellaneous charges, such as repairs made during the month. They’ll then pay you the remainder, along with a statement that itemizes any expenses incurred during that month. 

It’s important to clarify whether the property management company does full-month or mid-month accounting, as this will impact when you receive payment and how you keep your records. They also set the security deposit for tenants and handle the collection and return process at move-in and move-out, making sure to follow local regulations. With all these processes in place, you can trust that your rental property is running smoothly and efficiently. 

5. ADDITIONAL MANAGEMENT TASKS 

As a property owner, you want to make sure your tenants are living in a safe and comfortable environment, and that the lease agreement is being enforced. During the tenancy, the property management company is responsible for ensuring that the lease agreement is being followed, resolving disputes, and repairing any tenant-caused damage. 

They also perform periodic walk-throughs to make sure the home is being kept clean and sanitary and advise you on whether a lease should be renewed, and if so, help bring the rent up to market standards. In cities with rent control or tenants with government housing vouchers, the property manager can guide you through the complex process of raising rent and ensure compliance with local regulations. 

When necessary, the property manager can also modify the lease, such as adding an addendum for a roommate change, pet, or property modification. 

When a tenant gives notice to move out, the property manager takes care of finding a new tenant to minimize any vacancy periods. It’s a good idea to ask the manager you’re considering hiring about their vacancy period and how quickly they can replace tenants, to ensure your property is being efficiently managed.