In real estate property management, the property manager plays a crucial role. He or she takes care of properties in exchange for a percentage of the rent revenue [usually 5-10%]. The property manager will collect rent from the tenants, keep a record of the payments, and handle any complaints from the tenants.
In this article, we discuss some of the roles of a property manager in real estate investment.
Let’s explore these roles.
1.MarketingFinding tenants is not an easy task. It requires one to have the market knowledge and be able to set realistic rental rates. You must be ready to advertise the properties. The property manager must meet with potential tenants and show them the property.
A Real Estate Management Riverside property manager can come up with marketing programs and special promotions to help the property owner maximize occupancy. Moreover, these professionals work with a number of different clients, so they have a better understanding of the current market condition.
2.Operation of the property
The property manager is also responsible for managing the property. The property operation involves the daily activities of running a rental property. These include:
- Selecting maintenance companies to repair and maintain the property’s equipment, such as elevators, furnaces, HVAC, etc.
- Partnering with garbage collection companies
- Selecting and managing cleaning companies for common areas
- Handling tenant complaints
- Dealing with tenant evictions
The property manager must ensure proper cash flow. They can achieve this through:
- Collecting rents
- Paying for recurring expenses, such as water, electricity, etc
- Paying for special one-time expenses such as repairs
- Paying certain taxes on behalf of the property owner
- Paying installments to lenders
- Paying profits to the owners
This is also another crucial role of property managers. Screening a tenant involves doing a background check on the tenant to identify any criminal record, verify employment, and check credit history. Screening is essential since it can help the property manager end up with high-quality tenants, hence creating better outcomes for the property and increasing cash flow.
5. Administration
Files and records are part of property management. Local, state, and federal governments have control over real estate property management activities. The property manager is tasked with ensuring that records for accounting and taxes are well documented.
In general, a property manager is an essential resource. That’s because they play a crucial role in maintaining the property and enhancing profitability for the property owner. For any rental property owner who wants to maximize profits, hiring a property manager is essential. That’s because these professionals will ensure that rent is collected on time, hence increasing cash flow.
Again, for property owners with limited time, the best solution would be to hire a property manager to help you in managing and maintaining your rental property.
Final words
The role of the property manager in the real estate industry can never be undervalued. They play a significant role in the growth of this industry through their consistent cash flow due to efficient rent collection. They also help boost revenue by achieving higher tenant retention rates.
