It’s important to be aware of the responsibilities that fall onto a property management company before you create a property management company of your own. Managing a property management company involves navigating a complex and multi-faceted industry, so it’s crucial to be knowledgeable about what you are getting yourself into.
In this article, we’ll outline the key responsibilities of property management companies so that you can be informed about all of your responsibilities, ensuring a comprehensive understanding of managing a property management company effectively.
Set Rent
As a property management company, you will be responsible for setting the rent prices for your properties. You will need to do extensive research on what comparable properties are renting for in order to set a competitive price. You will also need to keep up with market trends so that you can make sure that you are always charging a fair price.
Collect Rent
It will be your responsibility to collect rent from your tenants on a monthly basis. You will need to set up a system for collecting rent, such as using an online portal or setting up automatic withdrawals. You will also need to have a plan for what to do if a tenant does not pay their rent on time.
Show Vacancies
When a unit in one of your properties becomes vacant, it will be your responsibility to show the unit to potential tenants. You will need to make sure that the unit is clean and in good condition before you show it to anyone. You will also need to be prepared to answer any questions that potential tenants may have about the unit.
Screen Tenants
It will be your responsibility to screen potential tenants before they move into one of your units. You will need to collect information about their employment history, rental history, and credit score. You will also need to run a background check to make sure that they have no criminal history.
Manage Complaints
It will be your responsibility to manage any complaints that tenants have about their units. You will need to investigate the complaint and take appropriate action to resolve the issue. If you are unable to resolve the issue, you may need to contact the landlord.
Market The Property
It will be your responsibility to market the property so that it attracts potential tenants. You will need to create listings on rental websites and in newspapers. You will also need to make sure that the property is listed at a competitive price.
Property Inspections
It will be your responsibility to conduct regular inspections of the property. These inspections are typically done once every three months. During an inspection, you will need to check for any damage or maintenance issues. If you find any problems, you will need to take appropriate action to resolve them.
Maintenance
It will be your responsibility to handle all maintenance issues that arise at the property. This includes everything from fixing a leaking faucet to repairing a broken window. You will need to have a team of qualified workers who can handle these issues in a timely manner.
Manage The Property’s Budget
It will be your responsibility to manage the property’s budget. This includes keeping track of all income and expenses. You will also need to make sure that the property is being run in a cost-effective manner.
Deal With Evictions And Defaulters
It will be your responsibility to deal with any evictions or defaulters. This includes serving notices, filing eviction paperwork, and attending court hearings. You will also need to have a plan for what to do with the property once the tenant has been evicted.
Conclusion
As you can see, there are many responsibilities that come with being a property management company. It is important that you are prepared to handle all of these responsibilities before you enter into a contract.