A full-service property management company has four coordinating functions: people (tenant screening); financial (rent collection and disbursement, accounting services); construction (maintenance and repair); and legal (lease agreements, eviction proceedings). They are responsible for renting and managing your property in all its aspects, and will offer these services:
-Advertising and marketing
-Tenant screening, including credit checks and background checks.
-Repair coordination and oversight
-Monthly and annual accounting
After you sign on with a property management company, they determine the monthly rental rate based on comparable rentals in the surrounding area. The property manager then advertises the rental, using all the means at their disposal, including newspaper advertising, signage, Web-based advertising, and multiple listing services.
The property management company will show the property, collect tenant applications, conduct tenant interviews and credit checks, and review the rental history of potential tenants. They will offer recommendations on the best tenant for your property. After the lease agreement is signed between you and the tenant, the property management company will make sure that your rental property is in move-in condition.
Each month the property management company will collect rent from your tenant. The check will be deposited in a large trust account in which you, the property owner, have a separate account. You are paid by the property management company out of this trust account.
The property management company will keep you apprised of any necessary repairs and will coordinate the repairs by contacting tenants to arrange times for vendors or repairmen to come by. Often, property managers work with a select group of contractors with whom they’ve negotiated discount pricing.
The property manager understands the state and local landlord-tenant laws. This is extremely important if any problems arise with your tenant. A good property manager can help you stay out of small claims court and knows how to conduct a tenant eviction so that it’s effective yet abides by state and local laws.
An important part of property management occurs when there’s a tenant turnover. A difficult aspect of rental management is distinguishing normal wear and tear on a property from excess wear. The property manager knows how to tell the difference and how to determine the correct amount of the deposit refund. They can help you avoid any disputes over this issue, which is often a troublesome one for property owners.