What Does A Property Manager Do?

Whether you’re an investor, a renter or just curious about real estate, you’ve probably heard of property managers – but what do they do? Property manager duties span beyond what you might expect; they usually do much more than just collect rent.

Thinking about hiring a property manager? Let’s explore their key responsibilities and what you can expect when working with one.

What Is A Property Manager?

A property manager is an individual or a company hired by a property owner to oversee and manage the day-to-day operations of their real estate investment property.

Property manager responsibilities include:

• Acting as the primary contact between owners and tenants
• Setting rent and collecting payments
• Handling maintenance, repairs, and tenant requests
• Screening tenants and managing lease agreements
• Overseeing property finances and budgets
• Ensuring compliance with local laws and regulations
• Keeping insurance policies up to date
• Maintaining good tenant relationships
• Managing evictions (when necessary)
• Marketing the property to attract renters

Property managers typically take care of real estate for investors and owners who either live far away or choose not to manage it themselves. Depending on the owner’s needs, a property manager can be an individual or an entire management company.

What Do Property Managers Do?

The main purpose of hiring a property manager or management company is to protect your property investment and passive income. Investors and property owners hire them for various reasons, whether they need local expertise or prefer a hands-off approach to managing their rental properties.

But what exactly do property managers do to keep things running smoothly?

Let’s go over some of their key responsibilities.

1. Follow Landlord-Tenant Laws And Regulations

Investors with properties in different areas or states may find it hard to keep up with various landlord-tenant laws. As local experts, property managers can help prevent legal issues by ensuring compliance with local laws and regulations such as anti-discrimination policies and fair housing laws.

For example, some states place limits on the amount you can charge a tenant for a security deposit. Because property managers are familiar with state laws, they can help ensure you're charging your tenants the correct amount, which helps prevent legal issues from arising.

2. Act As A Local Presence For Out-Of-Town Owners

As the onsite experts, property managers also act as a local presence for out-of-town owners. If a property owner has lived in Texas their entire life, they may not be equipped to deal with the ins and outs of managing property somewhere they’re unfamiliar with, like California or New York.

A property manager can take care of those details for them, along with other things that come up, like maintenance and operational issues that would be difficult to handle remotely.

3. Handle Maintenance And Repair Requests

A property manager or management company also handles maintenance requests and general property upkeep. Tenants can become frustrated when landlords are slow to respond to maintenance issues, but an onsite manager can quickly address their concerns.

Maintenance requests — ranging from broken appliances to pest problems — often need immediate attention. A strong local presence helps ensure tenant satisfaction and reduces turnover.

4. Market, Show, And Lease Vacant Units

Working with a property manager can also help property owners eliminate the potential financial loss of having an empty unit sitting around for an extended period. Rather than trying to market your property remotely to potential tenants, you can rely on a property manager to attract new tenants and potentially renew existing leases.

Tenants may be unwilling to move in without seeing the property. Working with a property manager allows owners to have someone present at the property who can show the potential spaces and address issues, even if the owner lives out of state.

5. Collect And Deposit Rent

Collecting and depositing rent is another key responsibility of property managers. To ensure owners get paid quickly, many use online platforms or payment apps to streamline rent collection.

They also handle late payments, collections, and evictions when necessary. For property owners, especially those managing properties from a distance, having a property manager ensures these tasks are handled efficiently, saving time, money, and stress.

What Does A Typical Day Look Like For Property Managers?

There’s no such thing as a “typical” day for a property manager since their job is to balance many tasks all at once. Every day looks a little different, whether they’re reviewing applications, handling tenant complaints, or coordinating maintenance and repairs.

Here’s an example of what a typical day may look like for a property manager:

8 am – Check Emails And Prioritize Daily Tasks

Since one of the main responsibilities of a property manager is to keep tabs on all requests and happenings with the properties they manage, the day may kick off with checking emails and messages.

Maybe a tenant reported a leaky pipe, or an owner is asking about the marketing strategy for a vacant unit — property managers must do their best to prioritize tasks to keep everything running like a well-oiled machine.

9:30 am – Handle Maintenance And Repair Requests

Since property managers handle a wide range of maintenance tasks, the next items on the to-do list may include things like coordinating with landscapers on a new project or hiring a locksmith for a lock change.

11 am – Marketing Efforts

Vacant properties mean lost income for the property owner. To ensure that each unit is rented out in a timely manner, part of the property manager's day may be spent marketing vacant units. Advertising efforts may include updating listings, scheduling tours, or negotiating lease renewals.

12:30 pm – Lunch Break

Because property managers wear many hats, they may not always have the opportunity to take a break. However, on a good day, they might be able to fit in a quick lunch. In some cases, they may have to multitask while eating to tackle other outstanding to-dos like reviewing financial statements.

2 pm – Property Inspections And Walk-throughs

A property manager’s responsibility is to make sure units are up to par for the new tenant. That said, in the afternoon, they might do a quick walk-through of an apartment before someone moves in, check on a recent repair, or inspect common areas for any issues. In some cases, they may also meet with city inspectors to make sure the property complies with all local regulations.

3:30 pm – Manage Tenant Relations And Conflict Resolution

After inspecting some properties, a property manager may head back to the office to address any outstanding concerns or issues, like contacting a tenant who complained about a noisy neighbor or sending a notification to a tenant who has fallen behind on rent payments. A property manager's role is to navigate these sensitive situations as professionally as possible.

5 pm – Wrapping Up The Day

Before heading out, a property manager may organize any tasks that need to happen the next day, like checking in with vendors or making sure to update financial records.

Depending on the management company or individual you hire, some property managers may also take after-hours calls for emergencies. After all, broken heaters and burst pipes don’t always happen during normal business hours.

How Much Does It Cost To Work With A Property Manager?

The cost of working with a property manager or management company varies by the particular company and location. The average cost is usually 8% – 12% of the property’s overall monthly rental income.

Besides a percentage-based management fee, you might also pay the following costs to work with a property manager.

Management Fee

Some property managers or companies might charge a flat fee for their services rather than a percentage. Like the percentage, this cost varies based on the company or individual and the location.

Maintenance Fee

Maintenance costs are part of property management whether you’ve hired someone to help or not. Property managers may charge a fee for monthly repairs or bill per incident. In either case, the manager or management company may also charge extra for handling the incident.

Leasing Fee

Your property manager might also charge a leasing fee (also known as a new tenant placement fee) to cover the costs of marketing your property to potential tenants. This can include the costs of marketing the property, managing applications and tenants, and move-in costs. Similar to the other fees, this might be charged as a flat fee or a percentage of monthly rent.

For example, a flat leasing fee may range from $200 to $500 per renewed lease or between 25% and 100% of 1 month’s rent for a renewed lease.

Lease Renewal Fee

Some property managers charge a fee when a tenant wants to renew their lease. Like the other fees, this might be a flat rate or a percentage of monthly rent, which may range from 25% to 50% of 1 month’s rent.

This fee covers the time it takes to renew the lease and obtain the tenant’s signature. However, many property managers skip this fee.

The Pros And Cons Of Hiring A Real Estate Property Manager

There are both advantages and disadvantages when choosing to work with a property manager to look after your investment properties. Before hiring a property manager, consider the pros and cons, your budget, and your personal needs.

The Pros Of Hiring A Real Estate Property Manager

Let’s first take a look at some of the benefits of enlisting the help of a property manager.

• Convenient for investors who own multiple properties:  Keeping tenants happy can be difficult if you own multiple properties. Hiring a property manager guarantees your properties and tenants get the attention they need, even if you're unavailable. 
• Allows you to invest in other places: One of the main perks of working with a property manager or management company is that it allows you to invest in properties far away from you without worrying about managing everything yourself remotely.
• Not responsible for operational tasks: Another notable benefit of outsourcing property management is that they will take care of maintenance and upkeep. Rather than attempting to tackle any and all repairs yourself, you can rely on a property manager or their in-house maintenance team to take care of the work for you.

The Cons Of Hiring A Real Estate Property Manager

Now let’s look at a few of the drawbacks of hiring a property manager or management company.

• Must relinquish control of the property: When you work with a property manager, you must give up some of your direct control over the property and allow them to take care of things for you. While this helps you avoid the hands-on work of managing a property, it also means they may do things differently than you would.
• High property management costs: You’re likely to be charged multiple fees in exchange for the service of a property manager. These costs vary, but tend to be a decent portion of what you make overall in monthly rent. Research property managers before working with one to confirm it works with your budget.
• Less control in the tenant screening process: Property managers often take over the task of screening potential tenants to live in your properties. While they still have screening standards, property managers might be less strict than you would be screening tenants yourself, which some real estate owners may not like.

The Bottom Line: Property Managers Are Trusted With Great Responsibility

Property managers can be a huge help to real estate investors who live far from their properties or just don’t have the time to manage them. But their services come at a cost and may not be the right fit for everyone.

So, before hiring a property manager, think about your budget, personal needs, and what your property requires. Ask yourself if you're okay with handing over some control of your investment to someone else.

If you’re ready to purchase your next investment property, get started today with Rocket Mortgage^®.