The Ultimate Guide to Rental Property Management

Property management (also known as rental management) – is the comprehensive oversight of rental real estate which includes tasks such as maintenance, operations, and marketing. This can be done by a property owner, property manager, or property management company.

A Property Manager (PM) is a person whose job is to manage the daily routines of rental properties and preserve the value of the properties while generating income. Generally, property managers oversee management activities such as rent payments, repairs and maintenance, security, and general property upkeep.

One of the most common questions in rental property management is “Should I Self Manage my property or hire a Property Management Company?”. The answer to that question depends on many different variables – Your industry knowledge, available free time and the type of rental property (e.g. a single family rental home vs a self storage property) will all help determine which is the best choice.

Choosing the right property management company can have a direct impact on the success of your real estate investments (positive or negative). The decision should be made by thoroughly assessing many factors such as the company’s reputation, and experience with your property type. Secondary factors such as fees, contract terms, range of services offered, and responsiveness should also be taken into consideration to find the right company.

In rental property management, there are several structures of service agreements  offered by property management companies. The 3 most common types are: Full Service Management, Partial Service Management, and A La Carte. Each has its own sets of pros and cons, so it is best to choose the one which best aligns with your goals as a rental property owner.

Property management services are the duties executed by property managers to successfully operate a rental property. These services can include overseeing a property’s entire operations with everything from rent collection to maintenance repairs, or only handle one component such as leasing vacant units.

How much property management companies charge and how they structure their fees, is one of the first questions that property owners want to know when assessing a property management company. Understanding how property management fees work and the rationale behind them is a powerful concept that landlords should understand to better help plan, budget, and decide on services.

Most property management contracts are for 12 month terms. Some companies may do shorter or longer contracts, but the common industry trend is for companies to require a minimum 12 month term to start, with subsequent annualized renewals thereafter. For longer term contracts or renewals, keep in mind the potential for industry changes or changes that you may want to make such as selling your property or transferring ownership.

Proper tenant screening is the force behind every successful rental property. When done correctly, tenant screening ensures that the landlord is getting the right tenant and the tenant is entering into a long-term relationship with a landlord who matches their expectations. The tenant screening process is usually done through a third-party tenant screening softwares that provide reports such as credit checks and criminal history.

Property management software helps property owners, property managers, and tenants handle various aspects of administration such as rent payment, scheduling property maintenance, and owner reporting. Programs specifically designed to accommodate different types of rental properties’ (e.g. parking lot property management) specific needs are also available.