What Are the Common Responsibilities of a Property Manager?

A rental property is one of the most rewarding financial investments. This asset offers you a steady flow of income, operates as a hedge against inflation, and has high growth potential.

However, owning a rental property comes with various responsibilities. If you are a busy person, running this business may be difficult, so you may need to hire a property manager to help you run this business. Read on to understand some of the common responsibilities of property managers.

Setting and Collecting Rent

When you hire a property manager, they'll help you set the rent. Before setting rent, property managers consider many factors. First, your manager will research the rent rates in your neighborhood and the amenities in your apartment. This information will help them set a competitive rent rate.

Setting rent rates is not a one-time activity. Your manager needs to study your environment regularly and adjust the rates according to the real estate developments.

For instance, if someone constructs an apartment with better facilities next to yours and charges the same price as you do, lower your rent price. This way, you can encourage your tenants to stay. However, you need to ensure you are still getting profit.

After setting the rent rates, your property manager will also set a system for collecting rent. Your manager will give your tenants the payment dates and preferred payment method (most property managers prefer bank deposits). To ensure effective cash flow, your manager may set late rent payment penalties and enforce these rules.

Screening Tenants

Sometimes, landlords are at risk of renting their apartments to untrustworthy individuals since they don't have the time or expertise to screen their tenants.

To avoid this issue, hire an experienced property manager. These experts know how to spot trustworthy tenants by taking them through an intensive screening process. For instance, your property manager will investigate the prospective tenant's source of income, credit history, criminal records, and rental history according to discrimination and fair housing regulations.

If the prospective tenant is approved, your property manager will collect the security deposit. This money is important since it will cover repair costs if the tenant damages anything in your house.