The title ‘property manager’ refers to a company or individual who is either hired or get a contract with real estate investors and property owners to manage and oversee all operations of a unit of real estate. The most common commercial property they manage includes retail malls, apartment complexes, and business offices. He said that most property owners hire them because they are either unwilling or unable to manage their properties by themselves (Brown et al, 2017).
Responsibilities of a Property Manager
All managers do not have a specific responsibility because they vary from one manager to another depending on various issues which include; the amount of the money they are getting paid, the type of the property that they are managing, and the type of management termed in the contract. Some managers have full control in managing a premise while others are partial. The most common roles of a property manager include; rent responsibilities, tenant responsibilities, maintenance and repairs, knowledge of the landlord-tenant law, supervising responsibilities, managing the budget and maintaining records, and responsible for taxes (Brown et al, 2017).
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Rent Responsibilities
This is the most common role of a property manager which involves setting rent, collecting rent, and adjusting rent. They are responsible for setting rents that will attract tenants to the properties that they are managing and also to make sure that they attain targeted profits. They are supposed to do a thorough study of the property, where it is located, and compare it with other properties in that area. Setting rent for that property mostly depends on several issues such as their quality, how spacious they are, closeness to roads among others. A manager will set a higher rent for properties that are spacious, one that is nearer to the road, have higher quality in terms of how it was constructed or its final touches and appearance, and have a spacious parking lot. The manager should also be careful not to raise the rent too high to levels that will not attract tenants.
The property manager is also responsible for collecting rent. He is supposed to make sure that every tenant pays his or her rent before or by the set date. This is to ensure that there is optimal cash flow from the property. They are responsible for enforcing late fees where the tenants are usually penalized for paying late. They usually add a small percentage to the tenant’s rent as the late fee which mostly varies from 5% to 20% of the rent (Ferguson & Smith, 2014). They use penalties as a way of mobilizing the tenants to be paying on time. They are also in the position of adjusting rent by either decreasing it or increasing by a certain percentage which maybe yearly or a one-time thing. Rent may be changed due to several factors such as developments in real estate industry, renovation of the property, competition, and also government policies that affect real estate such as increase or decrease of taxes.
Tenant responsibilities
Another core responsibility of a property manager is that of managing tenants and it includes the following. Finding tenants: it is the role of the manager to fill vacancies available. He or she is supposed to advertise the rental and should do it in a way that it will attract tenants such as offering tips about the premise. The second role is that of screening tenants who are interested in renting in that premise. The screening process usually includes; checking the criminal background of a person to prevent harboring criminals, run credit checks to make sure they minimize problems associated with late payment of rent and other factors such as the age group of the tenants. An experienced property manager has better ideas of selecting tenants that will have a longer tenancy, pay rent on time, and cause fewer problems.
Handling leases: It is the responsibility of the manager to settle lease term with the tenant making sure that all clauses protect the owner from any adversary. It includes setting the required amount of security deposit that the tenant is supposed to pay. The property managers are also responsible for handling complaints such as noise complaints, maintenance requests, and also should have the necessary contacts in case of an emergency (Means, 2017). Lastly, they handle all activities when a tenant is moving out such as inspecting damages and determining how much it will cost that tenant, cleaning and repair the unit. They also evict tenants who have failed to pay rent or who have breached the terms of a lease.
Maintenance and Repair
It is the role of the property manager to make sure that the property is safe and in a habitable condition. They perform preventive maintenance such as checking leaks, shoveling snow, landscaping, and removing trash in order to keep the property function properly. They also manage repair work which requires electricians, plumbers, carpenters or other contractors who may be sourced from his or her staff members or hired.
Supervising Responsibilities
The property manager is supposed to supervise his or her employees to make sure they are doing their duties accordingly and can set their salaries, fire or hire them because they are his responsibility. The manager may be hired to supervise vacant properties to ensure no vandalism occurs and also performing regular maintenance so that the property can stay in good shape.
Managing Budget and Records Maintenance
The property manager is supposed to work within the set budget for the building but can ignore it in emergency cases where either the physical structure of the building or the occupants are in danger (Means, 2017). He or she is also supposed to keep all the records regarding the property. These records are important because they may help in evaluating the property, its history, all of its expenses, and also, they can be used to gauge the work of the manager for reference or other purposes.
Knowledge of Landlord-Tenant Law and Taxes
It is the responsibility of the property manager to understand in-depth laws that govern landlord-tenant relationships. This will help him or her in screening tenants, handling security deposits, terminating a lease, evicting a tenant, and also how to comply with safety standards. The property manager is supposed to assist the owner in filing taxes although in some cases, the manager files the taxes on behalf of the owner as they had agreed in the contract (Brown et al, 2017).
Main Challenges Faced by Property Managers
The main challenges include; hiring and maintaining quality staff, growing revenue, damage and unexpected maintenance, time management, and lowering operating costs (Ferguson & Smith, 2014). Property management requires a team of members who have a wide range of skills for it to succeed. Therefore, the manager is supposed to hire employees who are highly skilled in the areas of customer services as well as in repair works. To get and maintain such qualified personnel is mostly very challenging to most managers due to their demand and most time it is expensive.
Growing revenue is also very challenging to most managers because the fee they get from the property owner is usually fixed. Therefore, to increase the revenue, most managers engage in finding more properties to manage so that they can survive in the business. But the move is not an easy one because of high competition from other property managers. Property damage and unexpected maintenance is another major headache for managers. This is because any cost in maintenance and repairs should be funded through the fee they get for managing the property. Therefore, if this cost rises, it will reduce their earnings, and if they neglect the maintenance, it will cause tenants dissatisfaction and they may vacate the property, and this will paint a bad image of the manager in charge.
Time management is usually a big issue that affects the manager and his or her staff. This is because their work requires time both in office and in the field where they are either showing properties to potential clients or doing repair works. Balancing time between the two is very difficult, and the manager and his staff are supposed to develop a schedule that will make sure that the time is well managed correctly. It is a dream of every manager to lower the operation cost, but only a few who can mutualize this idea. The biggest challenge in reducing the operation cost is the is the fixed and unexpected costs (Ferguson & Smith, 2014). To solve this problem, the manager is supposed to make hard decisions that will help him or her lower the cost such as coming up with a rule that if a certain damage done in the property will be catered for by the tenant who was responsible or by increasing revenue of the property.
References
Brown, D., Portman, J., & Rosenquest, N. (2017). The California Landlord's Law Book: Rights & Responsibilities . Nolo.
Ferguson, M., & Smith, S. (2014). The changing landscape of hotel revenue management and the role of the hotel revenue manager. Journal of Revenue and Pricing Management , 13 (3), 224-232.
Means, G. (2017). The modern corporation and private property . Routledge.
Interview Questions
Who is a property manager?
What are the main responsibilities of a property manager?
Does a property manager influence rent in any way?
What responsibilities does a property manager have on tenants’ affairs?
What are the major challenges do property managers face and how do they solve them?
