What is a property management company?
A property management company handles the day-to-day tasks of managing an investment property. Property managers are responsible for many tasks and duties related to renting out a home or building, including checking in on tenants, collecting rent, performing routine maintenance and handling tenant complaints.
What Does A Property Management Company Do?
Property management is a broad term that encompasses many different tasks. In the case of a property management company, they are responsible for the day-to-day operations of your property. This could mean everything from managing tenant relationships and maintenance issues to handling repairs, new construction and other aspects of your property. Here is what their responsibilities include:
Sources And Screens Tenants
The first step to finding a tenant is to know what you want in a potential renter. A good property management company will have its own screening process, but it can be helpful for landlords to understand how they go about finding the best tenants for their properties.
Tenants are usually screened by the property management company before they're allowed on your property. They'll look at previous landlord references and credit history, make sure they have enough income, employment stability (if applicable), and more.
Collects Rent And Handles Delinquencies
A property management company helps you collect rent on time. They take on the awkward collection conversation that a landlord would have with the tenant. They treat the transaction like a business and follow up and remind tenants to make their payments. If your tenant is late on rent, the property management company will handle it for you. The property management company will also collect any late fees that may be due as well as any additional costs associated with paying late (e.g. court fees).
When handling delinquencies, it's important that you make sure they are handled correctly and legally so that you don't get into trouble yourself!
Performs Routine Maintenance
Routine maintenance is the regular upkeep of your property, which includes both the physical structure and its contents. This process can include cleaning and maintaining plumbing systems, painting walls, repairing broken items in your home's interior or exterior, and replacing light bulbs and other small hardware items.
Routine maintenance is a necessary part of owning any type of property. However, it should be done on a regular basis anyway so that minor issues don't become major ones later down the road.
Handles Tenant Complaints
A property management company handles tenant complaints. This is important because it keeps the landlord in the loop about any issues that may arise and helps you avoid problems with your tenants.
When a tenant complains about something (like a clogged toilet or sink), the property manager will be able to help them resolve their issue with minimal stress for all parties involved.
Manages Invoices And Bookkeeping
A property management company is responsible for collecting rent, paying bills and keeping track of tenant payments. They also manage the finances of their properties. In order to do this, they'll need access to accounting records that can be easily shared with the landlord.
Managing these records means that your property management company can keep track of all incoming income from tenants and make sure it's being spent appropriately. This includes not only things like payrolls but also any expenses related to maintaining your building (such as repairs). The property management company can use their accounting records to prepare useful reports for you.
Conclusion
In simple terms, a property management company is a business that manages rental properties. They collect rent, handle tenant complaints and disputes, perform routine maintenance on the property, and handle other tasks that need to be done. You can consider them as an intermediary between the landlord and the tenants. For example, they may take care of things like pest control or repairs when tenants aren't able to do them themselves. Using their services can help take a lot of stress from your hands, allowing you to focus on other aspects of your work. Also, since they are knowledgeable professionals, they know how to better handle the different aspects of renting a property.
