Property Manager

Property Manager

What is a Property Manager?

Property Managers (PMs) can be people or businesses hired by the property owner or investor. The PMs will typically handle the day-to-day operations necessary for running a rental business smoothly.

PMs are usually licensed and can thus act on behalf of a property owner and make decisions around repairs and maintenance. In exchange, the property investor pays a pre-determined fee to the property manager.

What does a Property Manager do?

Depending on what you're looking for in your property investment journey, a property manager may be responsible for a wide variety of tasks:

  • Maintenance of the property
  • Responding to tenant requests
  • Coordinating with contractors to fix the property
  • Collecting and depositing rent
  • Showing and leasing vacant units

Landlords can decide to do the tasks of a property manager themselves but will need to deliver a prompt experience, in many cases, in order to comply with regulations. You can further learn about the advantages and disadvantages of hiring a property manager.

What should I expect to pay for?

The pricing for a property manager varies but here are some common costs to having a property manager.

  • Initial setup fee
  • Monthly management fee that's charged either as a fixed fee or as a percentage of the rent (usually 5-15%)
  • Leasing and placement fee (can be 50-75% of the first month's rent)
  • Eviction fee
  • Expenses for the property (eg. lightbulbs, paint, etc.)

Your property manager may ask you to hold a certain amount of money in reserves in order to pay for monthly expenses. Depending on your contract, your property manager may also require you to approve expenses that are under a certain dollar amount.

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