The following is a list of the tasks property managers commonly perform for owners. You may only need some of these property management services, and the property management companies you interview may offer more or less than what is listed here.
Evaluate the property and determine an accurate rental rate
- Perform detailed documentation of the interior and exterior including photos
- Offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI.
- Gather data on rental rates in the area and work with owners to determine the optimal rental rate. Rent research will vary but should include looking at the recently rented comparable properties according to size and type.
- Discuss with owners the pros and cons of different policies such as accepting pets, allowing smoking, etc.
- Install a lockbox
Market the property for rent
- Prepare home for rent
– Clean home and optimize interior appeal
– Manicure landscaping to increase curb appeal - Create ads tailored to the property and advertising medium. Some of the mediums commonly used are:
– Paid and free rental listing websites
– Print publications
– Signs
– MLS
– Craigslist - Work with other realtors and leasing agents to find a
tenant - Provide a 24-hour hot-line where prospective tenants can speak to someone about the property
- Field calls from prospects for questions and viewings
- Provide an online scheduling platform for property showings
- Meet prospective tenants for showings throughout the week and weekend.
- Provide prospective tenants with rental applications that are legally compliant with fair housing laws
- Collection applications with application fee
Tenant screening and selection
- Perform a background check to verify identity, income, credit history, rental history, etc.
- Grade tenant according to pre-defined tenant criteria
- Inform tenants who were turned down or accepted
Tenant move in process
- Draw up a leasing agreement
- Confirm move-in date with tenant
- Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
- Ensure all agreements have been properly executed
- Perform detailed move-in inspection prior to tenant move-in and have tenants complete a report verifying the condition of the property at the time of move-in.
- Collect first month’s rent and security deposit
Rent collection
- Receiving rent
- Hunting down late payments
- Sending out pay or quit notices
- Enforcing late fees
Evictions
- Filing relevant paperwork to initiate and complete an unlawful detainer action
- Representing owner in court
- Coordinating with law enforcement to remove tenant and tenants possessions from unit
Legal
- Advice in the event of a legal dispute or litigation
- Refer owner to a qualified attorney when necessary for damage collections
- Understand and abide by the latest local, state, and federal legislation that applies to renting and maintaining rental properties.
Inspections
- Perform quarterly or at minimum semi-annual inspections (Inside and outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
- Send owner periodic paper reports or video on the condition of the property
Financial
- Provide accounting property management services
- Make non critical payments on behalf of the owner (maintenance, water, etc.)
- Detailed documentation of expenses via invoices and receipts
- Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
- Provide annual reporting, structured for tax purposes as well as required tax documents including a 1099 form
- Provide easy to read monthly income statements which offer a detailed breakdown of income and itemized expenses
Handling maintenance and repairs
- Provide and oversee a maintenance company
- Establish a preventative maintenance policy to identify and deal with repair needs
- Provide a network of licensed and fully insured contractors who have been vetted for fair pricing and good work that is up to code.
- Assign jobs to different parties (in-house employees, handyman, and professional contractors) based on who will do the best job for a fair price.
- Ensure residents maintain outdoor areas
– Leaf and snow removal
– Landscaping
– Removing trash and debris - Maintain and monitor a 24-hour emergency repair hot-line
- Recommendations on larger renovation, restorations, or rehab projects
– Provide recommendations on how the project can maximize rental income.
– Prepare preliminary cost estimates
– Get multiple independent bids for the work
Tenant move out process
- Inspect unit and fill out a report on the property’s condition when the client moves out
- Provide tenant with a copy as well as estimated damages
- Return the balance of the security deposit to the tenant per the lease agreement
- Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
- Clean unit and perform and needed repairs or upgrades
- Re-key the locks
- Put the property back on the market for rent
This isn’t intended to be a comprehensive list of property management services, but it should give you a fair idea of the scope of a property management company’s activities.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
