A property manager has a large responsibility to oversee the ongoing maintenance of the properties they manage including things such as getting bids, making recommendations to owners, overseeing the work, and resolving complaints when services are not performed properly.
Property managers are well connected with licensed, bonded, and insured contractors who have been vetted for good pricing and work that is up to code. The built in network of contractors that comes with hiring a property manager is one of the biggest advantages that landlords who self manage cannot benefit from.
A management firm can also provide the advantage of forming a preventative maintenance program. This ensures that repair needs are addressed early on instead of when they become large and costly issues.
What Kind of Financial Services do Property Managers Provide?
A property manager has a significant financial responsibility because they handle rent monies, reserve funds, security deposits, and write checks on the owner’s behalf. They are also responsible for making sure that bills get paid.
In contrast, community association managers collect homeowner dues and pay for the maintenance of community-owned facilities. These duties require financial discipline, orderliness, high standards of integrity, and safeguards to establish transparency and accountability. The laws vary from state to state but many states forbid the co-mingling of funds and list out rules for how tenant and owner funds are handled.
Out of State Property Management
There are many benefits to having someone nearby overseeing your investment properties. A property manager can be this person. They can also perform periodic inspections and responds to complaints as necessary to keep the property in good condition. These responsibilities are almost impossible to perform for an owner who lives out of state.
Hiring a property management company in close proximity to your property can increase tenant satisfaction as problems can be discovered and resolved quickly. Local property managers also tend to be well connected with quality contractors and service providers in their local market, helping to save both time and money.
If the tenants are actually aware of the fact that the owner lives out of state, the likelihood of lease violations goes up because tenants believe there is a lack of accountability. Real estate investments are too significant to not keep a close eye on.