A property manager is a third party who may be contracted to handle the exhaustive operations of a real estate asset. A landlord may find the job of managing a property or properties is laborious or complex and not suited to his skills or he may be interested in only few aspects of the business—for example, the key mission of finding and screening tenants while allowing the property management company to handle directly the routine matters like the upkeep and repairs of the listing. Whatever be the reason, there are innumerable benefits to the estate owner in hiring a property manager, most of which revolve around having an experienced professional manage rental issues that he or she may not have the best of knowledge about.
A property management company can carry out the following vital undertakings on behalf of the landlord without a hitch.
- Advertise and market the property
- Interview and screen potential tenants
- Implementation of a lease agreement
- Manage rent collections and delays on behalf of the landlord
- Execute maintenance and repairs
Filling a vacancy:
An experienced property management company has the means and expertise of the local rental market to promptly fill a vacancy. They will have a rigorous screening process to guarantee they find the most suited tenants.
Setting the right rental rates:
A competent property management company will be able to ensure maximum profitable rent on a property, fixed after a thorough study of its market value while arresting a property from remaining vacant for any extended period of time.
Arranging for Vendors:
An efficient property management company will mostly certainly have trusted vendors that can perform creditable routine checks and repairs when required, on a property at fair market values. This ensure that the landlord receives dependable work in return for his investments.
Ineffective dealings causes unhappiness and conflict between both parties when not managed professionally. For example tenants and landlords are often times baffled with the difference between mould and condensation.
Condensation vs mould: While it’s simple enough to understand that condensation is caused when you have warm moisture laden air hitting a cold surface, it may not be often times clear how or when to take action when one finds the beginnings of condensation in homes or rented properties. It also often causes clashes as to who should take responsibility for the phenomenon in a rented property.
The maintaining of condensation is generally included as a clause within most agreements as the tenants’ responsibility. If severe condensation issues are observed in a rented property, and the tenant does not maintain it, a landlord can claim the damages and repair costs from a tenant’s deposit. However, a tenant in turn could also suffer losses to their possessions if mould is left unchecked (mouldy shoes in closets and musty mildew smells in bathrooms are good examples.) This is when the role of property management company becomes necessary to enforce upon and educate the tenants on the importance and pit palls of not managing condensation adequately and on time. Key factors such as ventilating and dry heating homes regularly and cleaning off spores that appear on windows or bathrooms with bleach, while undemanding, can have a huge impact if left unexplained to the tenant.
The fair wear and tear: Another common conflict that may be resolved easily by a third party involvement, is the fair wear and tear of a rented property.
This is quite simply any damage caused by regular use or normal exposure to the natural elements that is time or nature related.
Nature caused Damages
Commonly these are the owner’s responsibility to fix:
· Broken plaster or worn out paints
· Flood damages
· Plumbing leaks
· Carpets wearing down
· Water or sun damage to the exterior of the building
Tenant Caused Damage
These avoidable damages if found, should be accounted for and claimed from the deposit.
· Holes in walls from nails
· Broken glass panes
· Pet damages
Conflicts arise when there is a disagreement on what can pass for fair wear and tear on a rented property, without causing biased loss to one of the two parties involved. Most residential tenancies entail that the lease allow for reasonable wear and tear to the property.
But if a tenant has occupied a property for a year versus ten, there should be agreeably less damage caused by wear and tear. Inspections performed before and after the tenant moves in, with a date, allows for both parties to keep a tab on how much damage was caused. Here is where the involvement of a property manager to help draft a fool-proof property condition report before leasing out a listing to a party can make resolving such disputes smooth, and they can.
Property Condition Report
Most tenants prefer to be present during the inspection, so that they can ascertain the conditions themselves. At the end of the lease if required, this report may be used to claim losses or damages for the repairs from the deposit, or on top of the deposit.
Dealing with physical damages and maintenance of listings, including conditions like wear and tear and condensation, paperwork and inspections, are just few of the responsibilities that property managers can take over from the landlord.