There are plenty of tasks Property Managers frequently perform for owners. Only really needing some Property Management services, and the Property Management company may offer more or less.
Property Evaluation Is A Must To Determine The Perfect Rental Rate
Detailed documentation of the interior and exterior, make sure to include photos. Offering recommendations on repairs and cosmetic improvements will maximize monthly rent while providing good ROI(Return On Investment). Make sure to gather data on rental rates in the area and work along with owners to come to an agreement on the optimal rental rate. Doing rent research will vary of course, but should always include a look at the recently rented comparables according to its size and type.
Discussing with owners the pros and cons of different policies, some different policies may include accepting pets or allowing tenants to smoke and so on. Installing a lock box is at the owners’ discretion. Market the property to maximize rent prices.
Having a clean home will optimize interior appeal. Landscaping will help to increase curb appeal also. Creating ads that are tailored to the property helps with advertising.
Common Methods Used
- Paid and free rental listing websites
- Publication prints
- Signs, of course
Work with realtors and other leasing agents to find tenants. Make sure to
provide a 24 hour hotline, prospective tenants can listen to detailed information about the property. Meeting with prospective tenants and showing the property throughout the week and weekends, is a must do.
Educating prospective tenants with rental applications and explain to them how to be legally compliant with the fair housing laws. Don’t forget to collect the applications with the application fee.
Tenant Screening And Selection
A background check to verify identity, income, credit history, rental history is part of the being a Property Manager. Grading the tenant according to pre defined tenant criteria.
Tenant Moving In
Before the tenant moves in you must draw up a leasing agreement. Make sure to confirm the exact move in date. Review lease guidelines with the tenant regarding things like rental payment terms and required property maintenance and other procedures. Ensure all agreements have been properly executed in order to perform a detailed move in inspection for the tenant and have the tenant sign a report verifying the condition of the property prior to moving in.
After you dot your I’s and cross your T’s you can collect first months rent and the security deposit. Some variables that can come into play when collecting rent, unfortunately, is hunting down for late payments, sending out pay or quit notices and even enforcing late fees.
Evictions Can Be A Sore Subject
Filing paperwork to initiate and complete an unlawful detainer action is one of the downsides of being a Property Manager, but it happens. You have to represent the owner in court. Coordinating with law enforcement to remove tenant and tenants possessions from the unit is one part of Property Management.
Property Management can also come with giving advice in the event of a legal dispute or litigation. Best thing to do is refer the owner to a qualified attorney. Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining, Property Management comes with a lot of rules and regulations.
Provide accounting Property Management services. Payments are made on behalf of owner (i.e. Mortgage, insurance, HOA dues). Detailed documentation of expenses can be made via invoices and receipts. Maintain all historical records, that can consist of paid invoices, leases, inspection reports and warranties. Annual reporting are structured for tax purposes as well as required tax documents, which include a 1099 form.
As part of Property Management, giving advise to the owner on relevant tax deductions related to their rental property is part of the package of being a Property Manager. Another task that is part of Property Management includes providing easy to read monthly cash flow statements which offer a detailed breakdown of income and other itemized expenses.
Maintenance, Repairs, and Remodeling
Property Management oversees an in house maintenance crew. Establish a maintenance policy to identify and deal with repair needs that can be prevented.
Provide a network of licensed, bonded and fully insured contractors who are affordable and have experience when it comes to keeping up to code.
Property Management consist of assigning jobs to different parties (in house employees, handyman and professional contractors). In house employees have to maintain outdoor areas, that includes leaf and snow removal.
Tenant Ready To Move Out
Another side of Property Management includes inspecting units and filling out reports on the property’s condition when the client moves out. Provide tenant with a copy as well as any estimated damages. Return the balance of the security deposit to the tenant if the property is in the same condition as when the tenant move into. Forward any part of the owner’s portion of the tenant deposit to the owner or if repairs have to be done, hold in owner reserves for repairs. Clean unit and perform needed repairs or upgrades.
An important factor to take in is to re-key the locks once the tenant moves out. Once the unit is ready to be shown the Property Manager will do his/her job and exhibit the unit.
If after reading this you are thinking it’s time to hire a Los Angeles property management company please call TGN Property Management at 310 623 2704.
Again, though we consider ourselves a Los Angeles property management company, we handle all properties west of the 605 all the way to the ocean! Happy managing!
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