What’s a Property Manager?

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A property manager is an entity that takes care of a property, in exchange for financial compensation or a residence. Most landlords employ a property manager if they are unable to look after a property themselves or if they own a number of properties as investments and don’t want to spend time dealing with tenants or renters and maintaining maintenance. There are also companies that act as a property manager, often for a large portfolio of properties, centralizing all responsibilities and thus keeping costs down.

For properties with one person acting as the property manager, the manager will likely take care of all the responsibilities traditionally handled by an owner. Daily interactions would take place between the tenants and the property manager, with the landlord only stepping in if absolutely necessary. The property manager, for example, would take care of land maintenance, landscaping, repairing issues in tenant spaces or common spaces, cleaning common spaces, and any improvements the landlord decides they want.

Additionally, a property manager can also be expected to handle the financial side of the property, with the owner really only serving as the capital responsible for the property. In this case, the property manager will likely handle rents, including obtaining delinquent rents from tenants. They can also pay expenses from a common account or fund and can handle taxes on the goods or property for which they are responsible.

A property manager can also be hired to look after a single residence that a person only occasionally occupies. In this case, the property manager is responsible for keeping the property in a state of readiness so that when the owner comes to stay, it will be suitable for them. This would likely entail keeping the residence clean, keeping the property and all appliances and electronics in good working order. It can also include keeping the support staff paid and happy, keeping a stocked kitchen or wine cellar, and preparing the residence with fresh linens and utensils when homeowners are returning.

In exchange for their services, a property manager can be paid in a variety of ways. In some situations, a property manager may receive a commission based on income generated by the property. So, as rents go up, wages go up, and when homes become vacant, wages go down, incentivizing them to keep properties occupied at all times and make sure people pay on time. A property manager may also be paid a flat fee, either for an entire complex of properties or for each residence occupied. Finally, a property manager can be compensated in the form of free residency, also accompanying a slightly lower salary or other form of financial compensation.

Ultimately, the property manager acts as the liaison between the owners and tenants of a property. As such, his responsibilities are as great, if not greater, than those of an owner. In general, tenants expect the same things from a property manager that they would expect from a landlord, and landlords expect a lot from a property manager as well.

Asset Smart.

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