What is a Property Manager responsible for
What is a property manager and why should I use one? Do I need an assistant for my real estate and can someone look after my Serviced Accommodation units? These questions and more are all answered in this in-depth guide.
Here’s what is included:
An Introductory Overview
In short a property manager, or estate manager, is a person or a company that is hired to operate a real estate property for a fee and oversee the day-to-day operations of a unit of real estate. He or she is typically charged with handling operations, maintenance and administration of property rentals.
The work includes, amongst other things, marketing rentals and finding renters, collecting rent, ensuring rental rates are competitive while covering taxes and overhead, and complying with rental laws. Property managers are hired when the property owner or real estate investor is unable to attend to such details personally, or is not interested in doing so.
Property managers are individuals that specialize in making sure a rental is being operated according to the guidance given by the owner - no matter if the goals are based on providing attractive living conditions or financial, or both.
The guidance provided by the owner can take different forms - corporate property owners may issue vision and mission statements for their properties, while the individual owners may provide verbal guidance on their goals for the specific property.
Property manager makes sure that the tenants occupying the property are responsible, that the payments are received on time, the budgets followed and that the rental is being maintained properly.
The managers are usually hired by owners of multiple rental properties, seeing as how they are more likely to need professional help with managing property.
Investors and property owners that do not like dealing with tenants, managing the property, or don’t live near their rental properties are the most likely to hire property managers. There is a great number of real estate investors - particularly institutional real estate investors, who do not wish to be hands-on about the investment.
Responsibilities of a Property Manager
Responsibilities of a Property Manager
There are a variety of responsibilities and services that are included in the job description of a property manager, which may be requested by the owner of a property for a fee. These responsibilities vary based upon the type of property being managed, the terms of the management contract and the amount they’re being paid. Overall, they handle everything that happens daily in a rental property, and assist the property owners. The managers should have a working knowledge of the real estate industry the rental operates in, like housing or industrial property.
Then, the manager works by managing tenants, maintenance, rent, budgets and rental property records to meet the owner’s goals. Having an in-depth familiarity of state and national laws regarding the legal methods are necessary for screening tenants, handling security deposits, conducting evictions, terminating leases and complying with property safety standards.
Property managers come with different specialties and experiences, but also with different licensing. Some states require property managers to be licensed as real estate brokers, in which case, the property owner needs to hire a broker to make sure that their property is managed legally, whereas other states allow for managers to be licensed in property management instead of as realtors, and some don’t require licensing at all.
The responsibilities that fall unto the property manager might include coordinating and supervising building maintenance and work orders, doing light cleaning and handyman work, resolving tenant complaints and concerns, showing and leasing vacant units, collecting and depositing rent and communicating regularly on the status of the property with the property owner, and advertising. The role of the property manager is to be the owner’s eyes and ears on the property, to make sure that any issue is being dealt with promptly, and that the property itself is cared for professionally.
We can divide the responsibilities of a property manager into several main tasks:
Communicating with the Landlord
The primary responsibility of a property manager is to the landlord, and the secondary responsibility is to the agency. The relationships formed between the manager and the landlord, and the manager and the tenants, are crucial in building expectations of both parties to the lease, seeing how both parties will expect and seek certain benefits and rights out of it. The manager has to have a strong, professional relationship with the landlord, make sure that they are in tune when it comes to the property’s specifications and requirements, make periodic reports, and communicate any and all developments regarding that building. The reports are prepared by collecting, analyzing, and summarizing data and current trends.
Screening Tenants
Managing and screening tenants is one of the core responsibilities of a property manager. The manager may be involved in finding the prospective tenants, then screening them, managing maintenance issues and daily complaints, as well as handling evictions and tenant move-outs, all coordinated with the owner’s wishes. Property managers also attract tenants with advertising vacancies, explaining advantages of location and services, showing units and obtaining referrals from current tenants.
Property Management
The property must be kept in a safe and habitable condition, and this is the job of a property manager. They are responsible for the physical management of the property, which includes regular maintenance and possible emergency repairs. The work done by contractors and other repairmen must also be inspected in order to make sure it is up to standards, and that the work is being completed in a timely manner. Managers also secure the property by contracting with security patrol service, responding to emergencies, installing and maintaining security devices, and establishing and enforcing precautionary policies and procedures. Maintaining the property is done by inspecting vacant units and completing repairs, enforcing rules of occupancy, planning renovations, contracting with landscaping and snow removal services ,and investigating and resolving tenant complaints.In case of a dwelling (second home or vacation home) being only periodically occupied, the property manager might arrange for house-sitting, heightened security monitoring, storage and shipping of goods, as well as other local subcontracting that are necessary to make the property comfortable when the owner is in residence (this includes utilities, supplies and staff on hand, systems operating, etc.).Property management can also include commercial properties. In this case, the property manager may operate the business alongside managing the property, although managers may be required in some jurisdictions to be licenced for the profession.
Setting Rent
Seeing how setting rent is a basic responsibility of a landlord, it’s no wonder that it’s one of the most common jobs that will be passed on to a property manager. The manager sets competitive rent prices in order to attract tenants to the property. This is generally done by conducting a survey of comparable properties in the area, which should be done at least once a year, so that the property would remain attractive for tenants. The property manager is also tasked with calculating depreciation, taxes, overhead goals and profit goals. This also includes maintaining property rentals by advertising and filling vacancies, maintaining and securing premises and negotiating and enforcing leases.
Collecting Rent
Setting up a system for collecting rent from tenants is also one of the responsibilities that property managers deal with. They set a collection date in order to make sure that it’s possible to pay property monthly expenses, and strictly enforce late fee policies, which ensures an optimal cash flow. This is usually done with a contract with the tenants by negotiating leases and collecting the security deposit. In case of violation, the manager enforces occupancy policies and procedures by confronting the violators.
Managing the Budget
Maintaining all important records and managing the budget for the building can also be something that property managers are responsible for. There is usually a set budget for the building that the manager must operate within, but in some emergency situations, when the investment property (physical structure) or the tenants (occupants) are in danger, they may use their own judgment to order repairs or likewise with no concern for the budget. The manager also accomplishes financial objectives by collecting rents, paying bills, preparing an annual budget, analyzing variances, forecasting requirements, scheduling expenditures and initiating corrective action. Property managers accomplish organisation goals by accepting ownership for accomplishing new and different requests and exploring opportunities to add value to job accomplishments.
Types of Property Managers
As in any other vocation, there are several different types of property managers depending on their education, licencing, state or area of work, fees, etc.
These are the most common varieties:
Commercial Property Managers
Specializing in real-estate which is used for business purposes, commercial property managers may be well versed in administrative-type spaces and industrial buildings.
Multi-Family Property Managers
The specialist accustomed to managing facilities such as apartment complexes are multi-family property managers, who need to have good customer service skills and the ability to de-escalate situations, aside from performing the usual duties of a property manager.
Single-Family Home Property Managers
These managers work for real estate investors who hold their investments and rent them out for additional income, a type of investors who generally purchase homes in areas where there is a high rate of residential turnover, like in a military community and other communities where there is a tendency not to purchase homes. Single-family home property managers are then hired to make sure all of the facets of the property are well handled, and that the value of the property is maintained while being lived in.
Guest Manager for serviced accommodation
From check-in processes to invoicing; booking amendments to queries; KYC (Know Your Customer), refunds and arranging contractors, much of the admin side of managing serviced accommodation can be outsourced to a property virtual assistant.
Why Hire a Property Manager?
Why Hire a Property Manager?
Many property owners are busy and look for the obvious advantage of property managers - there is no need for the owner to be nearby and actively manage the property. This allows them to focus on investing in quality properties, instead of spending their time on managing the portfolio of properties currently owned.
However, the downside to this is the obvious difference in the ultimate source of income, which is the approach to the tenants - the level of attention and given service - the landlords working on their personal investment are sure to dedicate themselves more.
If you are thinking about scaling up your holdings, you should really consider hiring a property manager. The group depending the most on property managers are large real estate investors - instead of making any hands-on efforts, they usually work with a professional property management company. The most common types of commercial property run by property managers are business offices, apartment complexes and retail malls.
When hiring a property manager, you should cover the following things:
Unique benefits that set your business apart from the competition
Working hours - flexible hour or workweek options and paid time off
Travel requirements
Profit sharing
On-site meeting schedules
When it comes to the cost, employing a property manager is often tax-deductible against the income generated by the property they are managing.
What to Look for When Hiring a Property Manager
What to Look for When Hiring a Property Manager
Finding the adequate property manager is very important for your business. Just like any other service, there are some qualities that the person you employ should possess
A property manager is a face for your property - they deal with tenants, workers, and with you! Here are some of the things you should be looking for in your menager:
They should have a positive attitude
The disputes between the landlords and the tenants are not a rarity, and the market doesn’t always go the way we want it to. This is why a property manager should strive towards having a positive, can-do attitude at all times.
They should be proactive
Conducting surveys, enabling recurring payments, requiring renters insurance, sending out reminders to tenants five days before their rent is due is anticipating problems before they come. This shows that your manager is always one step ahead, and more likely to avoid problems.
They should be dependable and available
In the work description of property managers is a requirement for them to work with different kinds of people and to keep them satisfied. This is why availability is vital. The manager should respond to phone calls and emails in a timely manner, and they should show genuine care about resolving any occurring problem. Seeing how this is a highly competitive and fast-paced niche, most managers will prove to be determined and self-disciplined.
They should be organized
In the digital era that we live in, there is an app for almost anything, so organizing shouldn’t be a problem. Property managers can, with the help of technology, easily find good tenants, track landlord-tenant disputes and keep up with maintenance issues.Your manager should also cover the following:- Creating communications protocol with you (the landlord)- Knowing which tasks to outsource, and which not- Always having a contingency plan- Minimizing paperwork as much as possible
They should develop a system to find the right tenant
Landlords want to avoid any issues with tenants, and that is one of the reasons they hire property managers - to deal with the property in their name. This is why a manager should have a well worked out system for screening and finding quality tenants. The system should help them automate processes like background checks, security deposits and related paperwork, and with the help of the landlord (once the preliminary screening process is done) conduct the final vetting of tenants.
The property manager you hire should be a person who loves learning and growing, so you want to be assured that you’re dealing with someone who knows what they’re talking about. The manager should stay updated on things like local rent rates, changes in rules and regulations, and other emerging trends related to real estate.
Communication skills should be their core competency
Dealing with many different people on a daily basis can be quite exhausting, so using technology and modern practices is always a plus. Your manager should have templates for everything, thus saving time and streamlining the communication process by reducing the need to redo the same thing over and over again. The templates like maintenance request forms should be available on the property management website, so tenants can download and submit forms whenever the need for it arises.
They should engage the residents
Successful property managers get to know their residents personally and take the time to engage the people living in the properties they manage. This gives them a wider picture of the tenants and helps them find a right tone for communication. Therefore, forging genuine connections with their clients is of crucial importance.When engaging their clients, managers should:- Aim for transparency- Implement engagement strategy basics- Train their staff to provide consistent, high-quality service- Align contact center objectives and business goals
They should have good time management skills
People who know how to use (or not use) their time are more productive and efficient. Time managing skills are important for property managers who have clients and other issues to deal with. Time managing comes from a worked out routine that the person sticks to. Don’t expect your managers to be stuck at their desk answering calls and emails 24/7 - you should look for the ones with the well thought out schedule that breaks their day up into chunks devoted to a single task at a time.
Their paperwork should be in order
Property managers have to deal with paperwork on a daily basis and keep up with the latest industry trends at the same time. Having a good file management system in place is crucial for time saving and better handling the likes of audits, legal disputes and Fair Housing claims. Some of the tenant files a manager should handle are property maintenance notices, move-in and move-out inspection paperwork, security deposits and security deposit refunds, eviction paperwork, rent payment records, lease violations and corresponding action records, and correspondence regarding approval.
They should clearly define expectations from tenants
To ensure a good relationship with their tenants, a property manager should establish boundaries. Being too casual might be taken the wrong way, whereas being too strict can create tension. A manager should conduct themselves in a friendly, yet professional manner - they should answer any requests their tenants might have, but also be ready to take a strong position if the tenants do something against the regulations.
They should complete quarterly inspections
No property manager wants an unhappy client, nor to void insurance coverage - that is why they should conduct regular and thorough inspections of the properties they handle.With regular inspections, that should ideally be logged and completed every three months, a property manager makes sure of the following things:- Increasing tenant retention- Preserving and increasing the value of the property- Confirming that no illegal activity is taking place on the premises- Identifying areas that need repairs and maintenance
They should make sure that the property is presentable
Knowing that the first impressions last and that they can be the determining factor when making decisions about purchases of services and products, a property manager should ALWAYS do a proper inspection of the rental property before showcasing it to the client, and before the client moves in. Having a pre-tenancy report allows the manager to identify any issues beforehand, and make sure that the property they are presenting is clean, well prepared and tidy.
They should have a long term strategy and set goals
When a property manager has a long term strategy and set goals, it’s a clear sign that they are focused and thoroughly motivated, and that is exactly what you should be looking for.The long term strategy should include answers to the following questions:- What can be done to lessen expenditures?- How has their property management business performed in terms of tenant retention?- Are the tenants and property owners satisfied with the service they’re offering?- Are they consistently acquiring new clients?- Are there procedures that can be improved to better serve the property owners and tenants?- How efficient are they at collecting deposits, rents and the like?You might want to consider making this questionnaire and giving it to potential candidates for a position of your property manager. It could help you rule out the people you find the most competent for this position.
They should be decisive
The job of a property manager is fast-pace and dynamic - it requires a prompt and adequate reaction in a timely manner. Whether it’s because the person is intuitive or has a strong foundation for their opinions, they should stand by decisions they make and deal with any consequences as soon as possible.
Look for self-driven people
No matter if you’re hiring an employee for your company or someone to manage your property, you want to look for people who have a strong desire to achieve success. These are the people who go above and beyond to make sure they achieve their objectives - they mostly concern themselves with growing and improving as professionals, as well as avoiding distractions.A successful property manager should:- Conduct research- Dedicate themselves to discovering innovative solutions- Attend seminars- Join associations
They should act with integrity
People who are reliable, whose actions match their words and are straight-forward are people with integrity. These people usually have a positive reputation built in the industry. Property managers with integrity know that their company’s name is on the line; but they also know that they represent yours as well. This is why it’s very important to look for someone with a good reputation.
They should be forward-thinking
Like many other industries, the property management industry is evolving quickly thanks to technology. Property management processes are being made easier and more efficient by designs of more and more software, cloud and mobile solutions. A good property manager should keep up with and adapt to these changes, and use them for their own benefit.
They should be patient and collected
Managing property means having to deal with a lot of people all the time. This can be a very stressful and frustrating job. You want to find a person who works well under pressure, who is diplomatic, collected and patient, and who wants to find a solution to any problem as efficiently as possible. Handing eviction notices, rushing to solve an unexpected maintenance problem like a burst pipe or disagreeing with owners or/and tenants can all be very unnerving, so the property manager should always be on top of the situation and prepared to handle it in a professional manner.
They should be curious and up to date with the market
A habit of successful business people in any industry is curiosity. A good property manager is always on the lookout for more innovative and better ways to accomplish their goals. You can see the proof for this in the way they conduct their business - which technology they use, how often do they research the market and prices, how do they choose the tenants, do they have an internet presence, whether they have a working knowledge of online marketing, accounting and other fields related to real estate, etc. The more well-rounded a manager is, the better candidate they make.
Using a Guest Manager for Serviced Accomodation
If you manage Serviced Accommodation you may struggle to hit your goals as your precious time is often taken up by management and admin tasks. A skilled property assistant, trained in the platforms you use or experienced in the administrative side of your business can help you in a numerous areas, from talking to estate agents to acting as a guest manager on your behalf.
Here at bizee.co know how important it is to provide the best possible service and stay ahead of the competition by constant improvements and work. Our property assistants tick many of the afore-mentioned boxes, conduct business professionally and skillfully, making sure that all of your needs and wants are being taken care of. From check-in processes to invoicing, queries and booking amendments, to refunds to arranging contractors, much of the administrative side of managing serviced accommodation can be outsourced.
Here are some of the tasks a Virtual Assistant can help you with to make your corporate lets or serviced accommodation business run smoothly and give you some breathing space to engage in growing your serviced property business.
GUEST MANAGEMENT
A Property Virtual Assistant can manage all aspects of your bookings across multiple platforms, channel managers, and direct communication.
CREATING, EDITING AND UPDATING YOUR LISTINGS
An experienced property assistant can help you to list properties and make sure your content and photos are up to date.
CUSTOMER SUPPORT
A property sector virtual assistant can stay on top of email queries, patform queries and messages from prospective clients ensuring you can spend your time dedicated to doing that which you do best.
CLIENT FOLLOW UP
The power of the review in the internet age is second to none and yet consumers only tend to say something when they are unhappy. What are you waiting for? A property VA can actively get feedback from satisfied clients ensuring you get your five star reviews!
ESTATE AGENT OUTREACH
If you are looking to expand your business it is worth training your virtual assistant to do some of the outreach and get you the shortlists you want. Not all estate agents understand the nuances of corporate lets or serviced accommodation so delegating some of the legwork can help you make sur eyou don;t waste time speakign with hundred of contact but rather narrow down to the most qualified leads, in your search for more units to manage.
What can you expect?
We want to make sure that you can rely on us to do the job in a professional and competent way. Our assistants can deal with booking management, check in, guest support and more. This is a list of services that our clients typically delegate to our property team:
Channel Manager and OTA experience (Kigo, Tokeet, AirBnB, Booking.com etc.)
Payments, invoicing and refunds
Amendments
Cancellations
Logistics
Updating calendars
Guest KYC (like ID verification) and T&Cs
Arranging meet and greets
Supplying codes
Arranging both early and late check ins
Customer support for new or existing clients via email or some other platform
Dealing with and requesting feedback and reviews
We hope that this article was helpful and that it will aid you in finding the right property management service for your property. Please feel free to share your experience and comments below.
We offer you a variety of packages to suit exactly your needs, giving you several options for hiring a guest manager for your serviced accommodatin or corporate let:
The basic regular package offers a 30 minute shift per day
Our most popular package with Serviced Accommodation providers is one hour per day
We also offer a two hours per day package
Or the alternative is creating a custom plan for your property portfolio
Author: Thomas Smallwood is an outsourcing specialist. Having worked in companies around Europe, from the support desk to the boardroom, he founded bizee.co to help small businesses grow through efficient delegation to skilled virtual assistants. He is an award-winning blogger and a passionate advocate for mental health awareness.
Connect with Tom on LinkedIn.