What does a property management company do?

Real estate is one of the best investments that you can make in Canada. However, managing a property can be time-consuming and stressful. Many owners hire property management professionals to remove the stress from managing the property and maximize profits. But exactly what does a property manager do?

The responsibilities of the property management firm

The property manager’s job profile is to oversee your property and handle all the requirements pertaining to it. This includes:

 1.     Finding the best tenants

Your new property is a valuable addition to your rental portfolio only when it has a paying tenant. This is not an easy job because you have to scrutinize potential renters to ensure that they:

• Have the right credentials

• Are able to afford the rent you seek

• Have verified identity and other documents

• Do not present any risk to you/ your property

The property management company lists your property in appropriate channels for maximum reach. Then they identify appropriate tenants, do a thorough background check on the interested tenants and finalize the best one. Hiring a property manager ensures that the right tenant is in your property. Doing the due diligence upfront can reduce the number of tenant issues that arise. Bad tenants can withhold rent payment or cause excess damage to your property and not pay for it.

2.     Showcasing your home for rentals

One of the most time-consuming aspects of property management is showcasing your home to potential tenants. Your property manager takes over this task of:

• staging your home for tenancy

• holding open houses

• being available at the property to handle queries and walkthroughs

• answering common tenant queries

The manager’s expertise in this area ensures that the property is showcased as a valuable, appealing one to all potential tenants.

3.     Handling tenancy process/ paperwork

Drawing up the right paperwork for your rental contract is critical. This agreement is your legal fallback in case of any disputes with the tenant in the future. Thanks to their experience, property management companies know which clauses to include and what terms to specify in your tenancy agreement. It is the property manager’s job to get the tenant to sign off on the agreement before the tenant takes possession of your property.

4.     Marketing the property

As a landlord, you are looking to minimize the amount of time your property sits vacant.  Your property should be showcased to the market and positioned in the right channels so that it attracts the right tenants. A property management firm knows exactly which features of the property to highlight. They keep a pulse of the market to understand what tenants are looking for. They use this information to showcase your property in ads or during open houses so it is appealing to the ideal renters.

5.     Rent collection

Having a system in place for rent collection ensures that income from your property is in your hands on time month after month. Often, owners who try to manage their property themselves overlook missed rent payments owing to their busy schedule. Catching a missed payment instantly and questioning your tenant is very critical. It tells the tenant that you are staying on top of rental payments due and will act immediately if they do not pay on time.

A property management company frees you from this challenging task by:

• Tracking whether rent has been paid

• Checking why it hasn’t been paid

• Reminding tenants of rental amounts due

• Following up on payments

• Taking the right action for non-payment

6.     Addressing maintenance issues

It’s important to maintain your property for both resale value and improved rent rate. Unless you live close to your property, checking in to verify the condition of the property is not easy. Even if you are aware of maintenance issues, it is not easy to get the right professionals, address the necessary repairs and maintain the property.

Your property management company handles all of these tasks. They periodically evaluate the condition of the property, and get the required work done quickly and efficiently under their supervision.

Hiring a property management firm can save you time, effort and money. Property managers can take away your stress and ensure that you get a good return on your investment.