Owning a real estate investment property is no walk in the park. One of the biggest business decisions will be whether or not to hire a property manager. Are you currently handling all the paperwork and tenant communication? Then you know how much work goes into managing a rental property. Bringing in professionals who can handle everything from finding a tenant, maintenance management, and legal paperwork may sound like a dream come true.
So, what does a property manager do? Is it the same as a real estate agent?
First and foremost the company acts on your behalf directly with prospective tenants. Meaning, you don’t have to deal with daunting tasks. For example, sifting through hundreds of applicants and communication with tenants on a daily basis. They collect rent, manage the rates from year to year, handle maintenance and renovation projects, liaise with tenants about issues in the building, and even handle legal issues. They deal with properties like yours all over the city.
Your property manager is responsible for three major tasks concerning the rent:
What does a property manager do when a tenant turns into a nightmare? They handle it. Landlords and tenants are notorious for developing bad blood. It’s a tricky relationship to manage. As the landlord, you see a two-party business contract. The tenant, however, sees you as the boss of their house. A property manager can eliminate this. They have an official presence which sets clear boundaries.
Communication isn’t the only benefit of property management representation. They also take care of the following tenant responsibilities:
Tenant safety and protecting your property are top priorities for the property manager. You have invested time and money to provide a great space. It’s your responsibility to make sure the amenities are working and that the tenant is safe. What does a property manager do in case of an emergency at the residence? They will be the first to handle anything regarding the physical property and handle paperwork thereafter.
Outside of handling the movement of money and tenant communication, the next aspect is the legal department. Property management firms have seen hundreds of leases and agreements. Their legal department will be highly knowledgeable about state standards in multiple areas. For example, regarding the safety of the apartment, the rights of the tenant and many other details you may have overlooked working solo as an owner. Their legal team will be looking out for you as their client so that your rights as the landlord are protected. Especially when dealing with evictions or tenants who have caused damage beyond the coverage of the security deposit. This is a key element because in New York many laws favor the tenant. Regardless of how many years of experience you have as a landlord, nothing beats a great legal team.
The PM will advise on how you should file your income tax from the property. They will also provide the necessary paperwork for your accountant. Depending on the property manager, they may even file your taxes for you.