Types of property managed
Landlord
Single Family Homes-Landlords who own a single family rental property will usually manage the home themselves, as it does not make financial sense to hire an outside manager.
Small Multi-families- Rental properties with two to six units are often managed by the landlord as well. This number of units still seems manageable to most landlords.
Property Manager
Larger Multi-families- It is more common to see an outside property manager at larger multifamily buildings, those with six units or more. Due to the number of units, many landlords can justify a property manager’s fee.
Portfolios of Properties- Property managers can also manage a portfolio of properties for a landlord. This could include any combination of properties, from several single family homes to a mix of multi-familities and commercial spaces.
Commercial Properties- Property managers are often the ones in charge of daily operations at commercial properties.
Properties With Absentee Landlords- Any investment property where the landlord does not live in the immediate economic area of the property is more commonly managed by a property manager.
Responsibilities
Managing a rental property involves the same responsibilities, regardless of whether the property is managed by the landlord or by a property manager. These responsibilities include:
Point of Contact
One of the main differences between a landlord and property manager is who the tenant will be dealing with on a daily basis.
Landlord
If the landlord is the one managing the rental, any communication regarding the rental property will be between you and the landlord directly. This has its pros and cons.
Since the landlord owns the property, he or she makes the most money when tenants are happy, pay their rent on time and do not damage the apartment, so they have a vested interest in keeping their tenants happy. On the other hand, the landlord owns the rental property, so they may take complaints personally or may let personal issues get in the way of business.
Property Manager
A property manager is the point of contact between the landlord and tenant. They are often given the authority to make decisions without having to consult the landlord. The benefit of this is that the property manager does not own the property, so they are able to handle situations in a more professional manner. The downside to this is that they do not own the property, so they may not be as attentive about certain issues as the actual landlord would be.
Lease Agreements
The types of lease agreements that landlords and property managers use can vary. While the lease agreement can be as general or as specific as you want, the most important thing is that it follows the landlord tenant laws of the area where the rental property is located.
Maintenance/Repair Requests
Landlords and property managers generally have different ways of dealing with property maintenance and repairs.
Cost
The rent price you pay may differ depending on if you are renting from a landlord or a property manager.
Property Manager
You may have to pay an application fee when renting a unit from a property manager. The rent may also be slightly higher because the landlord may be accounting for the fee they have to pay the property manager. You may, however, be more likely to find a deal, like a free month’s rent if you sign a yearlong lease.
Should you hire a property manager?
If you are a landlord, debating about whether to hire a property manager, consider the following pros and cons.
Other option?
If you are a landlord, you can either hire a property manager to manage your property – or you can use RealToro.
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