What Does a Property Manager Do? Key Responsibilities and Costs for 2024

Hiring a property manager typically costs 8-12% of your monthly rental income and delegates critical tasks like tenant screening, maintenance, and legal compliance. For many rental property owners, this service is a worthwhile investment that saves time and mitigates risk, especially for those who live far from their property or own multiple units. Based on our experience assessment, the decision hinges on your availability, budget, and long-term investment strategy.

What are the primary responsibilities of a property manager? A property manager is a professional or firm hired to oversee the daily operations of a rental property. Their core duties transform a hands-on investment into a more passive one. Key responsibilities include:

• Tenant Acquisition and Screening: They market the vacancy, conduct showings, and rigorously screen applicants based on credit, criminal, and eviction history.
• Lease Management: They prepare and enforce lease agreements that comply with local landlord-tenant laws, handling renewals and terminations.
• Rent Collection and Financials: Managers systematize rent collection, often through online portals, and manage financial records for taxes.
• Maintenance and Repairs: They coordinate all maintenance, from minor repairs to emergency issues, using a network of trusted vendors.
• Legal Compliance: They ensure the property adheres to state and local housing codes, which is crucial for avoiding costly violations.

How much does a property manager cost? The cost structure for property management is not a single flat fee but often a combination of charges. Understanding these fees is essential for budgeting.

Additional fees for specific services like eviction handling or deep cleaning may also apply. It's critical to review a management agreement thoroughly before signing.

When does hiring a property manager make sense? The value of a property manager becomes clear in specific scenarios. If you own rental properties in a different state, a local manager is practically essential for addressing tenant needs and property emergencies promptly. Owners of multiple units often find the coordination workload too demanding without professional help. Furthermore, if you lack the time or expertise to handle repairs, legal documents, and tenant disputes, a manager provides valuable expertise.

What are the pros and cons of using a property manager? Weighing the advantages and disadvantages helps in making an informed choice.

Potential benefits include:

• Time Savings: Delegating tasks frees you up for other priorities.
• Expertise: They navigate complex laws and set optimal rental rates using Multiple Listing Service (MLS) data and market analysis.
• Vendor Network: They have pre-vetted contractors, often securing better pricing and faster service.
• Tenant Retention: Professional handling of issues leads to longer-tenured, reliable tenants.

Potential drawbacks to consider:

• Reduced Control: You relinquish day-to-day decision-making.
• Cost: Management fees directly impact your profit margin.
• Varying Quality: A less-than-thorough manager can cause more problems than they solve.

To maximize the value of a property manager, conduct thorough interviews and request references. Clearly outline your expectations in the management agreement regarding communication frequency, repair spending limits, and tenant screening criteria. This proactive approach establishes a strong, professional partnership that protects your investment.