The following is a list of the tasks property managers commonly perform for owners. You may only need some of these property management services, and the property management companies you interview may offer more or less than what is listed here.
Evaluate the property and determine an accurate rental rate
Perform detailed documentation of the interior and exterior including photos
Offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI Gather data on rental rates in the area and work with owners to determine the optimal rental rate. Rent research will vary, but should include looking at the recently rented comparable according to size and type.
Discuss with owners the pros and cons of different policies such as accepting pets, allowing smoking etc.
Market the property for rent
Prepare home for rent
Clean home and optimize interior appeal
Manicure landscaping to increase curb appeal
Work with other realtors and leasing agents to find a tenant
Provide a 24-hour hot-line where prospective tenants can listen to detailed information about the property
Field calls from prospects for questions and viewings
Meet prospective tenants for showings throughout the week and weekend.
Provide prospective tenants with rental applications that are legally compliant with fair housing laws
Collection applications with application fee
Tenant Screening and Selection
Perform a background check to verify identity, income, credit history, rental history, etc.
Grade tenant according to pre-defined tenant criteria
Inform tenants who were turned down
Tenant Move In
Draw up leasing agreement
Confirm move in date with tenant
Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
Ensure all agreements have been properly executed
Perform detailed move in inspection with tenant and have tenants sign a report verifying the condition of the property prior to move-in.
Collect first months rent and security deposit
Hunting down late payments
Sending out pay or quit notices
Enforcing late fees
Filing relevant paperwork to initiate and complete an unlawful detainer action
Representing owner in court
Coordinating with law enforcement to remove tenant and tenants possessions from unit
Advise in the event of a legal dispute or litigation
Refer owner to a qualified attorney when necessary
Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining rental properties.
Perform periodic inspections (Inside and outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
Send owner periodic reports on the condition of the property
Provide accounting property management services
Make payments on behalf of owner (Mortgage, insurance, HOA dues, etc.)
Detailed documentation of expenses via invoices and receipts
Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
Provide annual reporting, structured for tax purposes as well as required tax documents
Advice owner on relevant tax deductions related to their rental property
Provide easy to read monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses
Maintenance, Repairs, and Remodeling
Provide and oversee an in-house maintenance crew
Establish a preventative maintenance policy to identify and deal with repair needs
Provide an network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that is up to code.
Assign jobs to different parties (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
Maintain outdoor areas
Leaf and snow removal
Removing trash and debris
Maintain and monitor a 24 hour emergency repair hot-line
Larger renovation or rehab projects
Provide recommendations on how the project can maximize rental income.
Prepare preliminary cost estimates
Get multiple independent bids for the work
Act as general contractor overseeing the work
Tenant Move Out
Inspect unit and fill out a report on the property’s condition when the client moves out
Provide tenant with a copy as well as estimated damages
Return the balance of the security deposit to the tenant
Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
Clean unit and perform and needed repairs or upgrades
Re-key the locks
Put the property back on the market for rent
This isn’t intended to be a comprehensive list of property management services, but it should give you a fair idea of the scope of a property management company’s activities
At this point you may be thinking, “Ok, so that’s what what they can do, but how does all of this benefit me and relate to the big picture of my real estate investment strategy?”. contact Lawrence