What Is a Property Manager in Real Estate? A Clear-Cut Answer

 

In order to effectively manage properties, take care of their proper maintenance, and increase their market value, you should have the appropriate experience and necessary knowledge. Therefore, landlords and property owners who need help with their real estate, often hire professional property management companies. A property manager can work on his own or be a part of a larger company. Even though their services cost quite a lot of money but it is usually a worthy investment in the long run.

 

A real estate manager is commonly referred to as a property manager. His main role is to supervise the daily operations of a particular real estate, e.g. an apartment complex or commercial building. He manages property maintenance, keeps relevant documentation, does repairs, finds renters, handles evictions, and collects rent.

 

The work of a property manager requires action on many levels, thus, this function is best suitable for professionals. Knowledge and experience are a very important element of proper real estate management. Licensed real estate managers will certainly be perfect for this role.

 

Read on to find out who exactly is a property manager and what are his duties and responsibilities.

 

What is a Property Manager in Real Estate?

A person who performs tasks passed on to him by the property owner is known as a property manager, or sometimes also called a real estate manager. The manager makes a number of decisions and performs all the duties related to the real estate operation and management. He is involved in keeping the property in good condition and increasing profits for the owner.

 

Property Manager Responsibilities: What Is the Role of a Property Manager?

Generally speaking, the main responsibility of the property manager is to maintain the building in a condition that allows its tenants to comfortably use all its facilities and surrounding grounds.

The role of the property manager is to make decisions and perform actions to keep the property well-maintained as intended. He is responsible for making sure that the property is used in the most efficient way.

He also advises the owner on activities aimed at maintaining the property in good condition and its further development. Thanks to this, it’s possible for the owner to maintain or even increase the profit that his real estate investment brings, and increase its market value.

The basic responsibility of the manager includes compliance with the law and acting in accordance with professional ethics.

The real estate manager’s responsibilities include representing the owner in performing all activities. He has the right, among others, to initiate debt collection activities if there are arrears in rent and fees for the use of the premises. He is obligated to enter into contracts with different providers who perform services in the property.

 

Duties of a Property Manager: What Does a Property Manager Do?

Efficient management allows for optimizing the costs of property maintenance and maximizing profits. To achieve these goals and effectively run the business, the manager must perform a number of duties.

The duties of the property manager include comprehensive services, that is, making decisions related to the management of the property, and analyzing and monitoring the factors that affect its reasonable management.

When an apartment or other real estate unit becomes vacant, a property manager’s duty is to find, screen, and qualify tenants that are reliable. He will handle many of the day-to-day activities, such as prospective tenant applications, and background and credit checks. This will help the owner find qualified renters and eliminate potentially risky tenants.

Since the rent money is to pay the mortgage, the owner wants to make sure that he’ll be receiving the rent payments regularly. Otherwise, he could be at risk of losing his real estate investment.

The manager’s duties also include keeping financial and technical documentation of the property as well as keeping a tenancy register. He takes care of the proper technical condition of the building and deals with the preparation and implementation of rules and regulations for tenants.

In order to perform the entrusted function and duties the right way, the property manager has certain powers, e.g. he can initiate debt collection activities.

In addition, he signs contracts with various contractors and service providers to ensure the supply of utilities. He fixes breakdowns, leaks, and damage in the building and looks after the maintenance of the common areas of the facility.

 

Skills and Characteristics of a Good Property Manager

A good property manager should, above all, apply the law and professional standards, and be an honest person for whom professional ethics is a priority. This is important due to the fact that the role of the property manager is very broad. All activities undertaken by the person performing this function should be done with the best intention for the property and its owner.

The property manager should take care of the development and effective management of the property. Therefore, in this profession, having a great experience and extensive knowledge of management and the real estate market plays a very important role. Good property managers pay attention to the constant improvement of their professional qualifications and skills as well as searching for innovative and optimal solutions.

 

Can You be a Property Manager and a Real Estate Agent?

If you have the skills, experience, and knowledge to perform hands-on property management tasks such as finding tenants or sorting out repairs, and at the same time closing deals on the property as an agent, there is no obstacle that you can be both, a property manager and a real estate agent.

Even though real estate and property management are two separate industries (with some overlap), if you feel comfortable with performing both functions, and face all the duties and responsibilities, you should go for it.

You can be a manager of the property while still being a real estate agent, which will provide you with an extra source of income. Namely, you will earn a percentage of the rent collected from the tenants as you still manage the property.

Also, operating both businesses simultaneously is legal, and will make you credible for real estate owners who can rely on one qualified person to close deals and make money for them.

Real estate agents often pursue a career in property management because of the instability in the housing market. Without any doubt, the real estate market is often up and down. However, property management business usually stays strong and unaffected.

When there’s a downturn in the housing market, many real estate owners turn to property managers to rent out their properties until the housing market bounces back. And this is a great opportunity for you to reap the rewards during these times.

 

Do Property Managers Need a Real Estate License?

A real estate broker’s license is a type of accreditation that’s most frequently required for property management. Whether a property manager requires a real estate broker’s license depends on which state they live in as well as what types of activities they do and get paid for. These may include:

Collecting rents

Advertising the availability of a rental property

Negotiating leases or lease terms

Preparing or discussing a property management agreement with an owner

Showing property to a potential renter

Giving real estate advice

Driving or accompanying a potential tenant to the rental property

 

To put it simply, if you don’t undertake any of the activities listed above, you not need a real estate license.

An exception when a license to engage in these activities is not required is in the case of a manager living onsite at a property.

However, in most states, anyone involved in property management activities will require a real estate license. Yet, it can get be a bit unclear because real estate statutes of some states never even mention the term “property management”. For a complete list of states requiring a license, check All Property Management.

Many important duties of property managers are considered a real estate activity under most state’s real estate licensing laws. This means that whoever engages in them must have a valid real estate broker’s license. It’s essential to contact your state’s real estate commission to check which type of license you need for your property management business.

 

Is It Worth It to Hire a Property Manager?

Finally, it’s time to answer the question of whether it is worth hiring a property manager. Choosing the right property manager is a great option for owners who find it overwhelming to manage their real estate investments.

Hiring a property manager is especially worth it if you are purchasing a rental property with multiple units. However, you must investigate the prospective manager carefully. Otherwise, you might find that your units go un-maintained, and you can never recoup the lost rental income.

When purchasing an investment real estate that’s located far from where you live, it’s highly recommended to hire an onsite property manager. You should have someone available there all the time in case of an emergency. Efficient response to calls can help you to earn a solid reputation and keep your tenants satisfied.

Professionalism and experience is an extremely important element of good property management. It’s a task that requires a lot of work, time, and specialist knowledge, which is beyond many property owners.

A property owner who plans to hire a specialist to manage their investment property should first verify that the potential candidate holds a valid license for their state. It can be easily done by looking up their name in the online database provided by most states.

 

To sum up,

If you are a landlord or an owner and you want to take the burden of managing your real estate off your shoulders, you should definitely consider hiring a professional and experienced property manager.