What is Residential Property Management?
Updated: Oct 1
Several real estate investors or rental property owners don't have the time or the experience needed to handle the daily operations of their property. Therefore, they prefer hiring a residential property manager. This contract often begins by signing a mutually beneficial residential property management agreement.
But first, there's an essential question at hand.
What is Residential Property Management?
A residential property management company oversees all types of homes, including apartments and mobile homes. The property manager operates on behalf of the owner of the property. The properties they manage produce income for their owners, so it is their job to ensure it always churns out a profit.
When you have a residential property manager looking after your property, you can expect them to handle the leasing process and the marketing. They can also handle the day-to-day operations to ensure the property is in top-notch condition. Whether they're analyzing the area, setting the rental rates, or showing your property to potential tenants, you can expect them to take care of everything.
Still not sure about their responsibilities? Here's a more detailed explanation.
The Responsibilities of a Residential Property Manager
Listed below are some of the common responsibilities that a property manager will take on behalf of their owner. Remember, this isn't an exhaustive list, and several property managers can take on even more responsibilities:
Marketing: A profitable rental property won't stay vacant for a long time (or at least it shouldn't). A property manager will have a playbook related to marketing. This way, they can market your property quickly and more efficiently.
Financial Reporting: A property manager will also handle the finances that relate to your property. They'll help you keep track of your expenses or receipts, which can often be tricky. If this isn't done correctly, it can hurt the business's cash flow. When you work with a professional property manager, you know your finances are always in order.
Screening Tenants: Even though promoting the rental unit is the first step, a landlord must also be able to select the best possible tenant for their property. That's because they need to ensure if a certain individual qualifies based on their requirements or not.
Evictions: Are you having a problem with your tenants, or are some not paying the rent? This is also where a property manager can help you process or file an eviction. If additional assistance is needed, they can also help you consult a legal counsel to ensure that all eviction moves are made according to the law and as swiftly as possible.
Collecting Rent: On many occasions, collecting rent from a tenant and other fees can be hard. With help from a licensed property manager, you'll have access to follow-up processes that ensure you're collecting all the rent from your properties.
Repairs: Some property managers can also have their maintenance team that caters to all the problems. Some property managers may prefer hiring third-party contractors for the job in other cases. Whatever the case is, a property manager shouldn't face any problems maintaining your property
Home Staging: Rental staging will set your house out from the competition, give prospective renters confidence, and help you attract the best tenants. According to Worthington Flowers a simple expense of rental staging may protect your rental properties from lying vacant for too long, allowing you to make money instead of losing money.
How is a Residential Property Manager Different from a Commercial Property Manager?
A residential property manager's job description is quite different than that of a commercial property manager. Firstly, a residential property manager has to focus on individually owned units. For instance, some property managers can focus on:
A single-family home
Their experience with these properties can give them an edge over the competition. Moreover, unlike a commercial property manager, a property manager isn't on site. Instead, they can have an office 30 minutes or an hour away from all the units they're managing. Since a residential property manager is dealing with tenants living in homes, they have to be available 24/7 for all maintenance-related issues.
When Should You Hire a Residential Property Manager?
Here are some instances in which you should consider hiring a residential property manager:
If it becomes too difficult for you to get your property filled and the listing process has become excessively time-consuming, you should consider hiring a residential property manager. With their expertise, you should be able to fill up your rental unit fairly quickly.
You're trying to explore other investment opportunities. Since you've already understood the retail market, you can hire a property manager to look after your rental properties while focusing on your next venture.
You may also need the help of a residential property manager if you live 60 or 100 miles away from your property. Having a property manager can close by can help keep the day-to-day operations smooth.
Apart from these, there are several other brilliant reasons to hire a residential property manager. They help you save money and make your life considerably easy, too!