What is property management? If you’re like many homeowners faced with the prospect of renting out your house – or if you’re an investor who’s decided not to sell a house you’ve worked on – you’ve probably heard that you could use a little help from a Boston property management company… but what could a property management company do for you, why is it so important and what skills should your property manager have?
Here’s what you need to know.
What is Property Management?
The term property management refers to an outside party – a person or company – overseeing a rental property as it generates income for the owner. The property can be residential, commercial or industrial. The most common managed properties include apartments, houses, condos and shopping centers.
What Does a Property Management Company Do?
A property management company (or an individual property manager) handles the day-to-day operations of running a rental property. Those daily operations include things like:
- Screening prospective tenants
- Giving tours of rental spaces
- Drafting and signing leases on a property owner’s behalf
- Property maintenance, such as snow removal and landscaping
- Handling – either personally or through a contractor – repairs and upgrades
- Rent collection
- Handling eviction proceedings, if necessary
So what is property management in a practical sense? It’s handing over the reins on a rental property so you, the homeowner or commercial property owner, can focus on other investments or other work.
Related: How to do a background check on a tenant
Who Uses Property Management?
Most people who own houses, condos and apartments use property managers to handle daily operations. Whether you’re an investor or you work in another field, you can benefit from having a property manager look after your rental space. Maybe you don’t want to deal with tenants, or perhaps you simply don’t have the time to coordinate repairs, maintain your house or collect rent. Maybe you even inherited a house that you couldn’t sell, or maybe the last thing you want to do is familiarize yourself with federal and state laws that deal with landlord-tenant relationships. Regardless of your situation, you may want to outsource property management to a professional who can handle everything for you.
Related: 9 tips to help you find renters for your house in Boston
What is Property Management? 5 Frequently Asked Questions
Five of the most common questions (other than “What is property management?”) about outsourcing management include:
- What is included in property management services?
- How does a property manager get paid?
- Is a property manager the same thing as a landlord?
- Does a property manager pay for repairs?
- Is it worth it to use a property management company?
Here’s a closer look at each – but if you don’t see your question answered here, call us at 617-262-3075. We’ll be happy to tell you everything we know.
What is Included in Property Management Services?
A good property management company will handle a wide range of services for you so you’re free to focus on other things. Some of the services the best property management companies provide include:
- Tenant screening
- 24-hour emergency maintenance and repair
- Security deposit holds and returns
- Rent collection
- Tenant calls, emails and texts
- Lease renewals and rent increases
- Annual property inspections
- Move-out inspections
- Property payments, such as HOA, mortgages, water and sewer, and others
- Housing court assistance
How Does a Property Manager Get Paid?
Property managers are paid based on the services they provide in various types of properties. In some cases, property managers charge a flat fee for condo units or retail spaces; they often charge a percentage of the rent collected in other types of rental properties, such as duplexes and single-family homes. A good property management company will be up-front about its fee structure.
Related: Boston property management pricing
Is a Property Manager the Same Thing as a Landlord?
A property manager acts on the landlord’s behalf. Technically, the building’s owner is the landlord. Tenants only deal with the property manager, not the owner.
Does a Property Manager Pay for Repairs?
A property manager does not pay out-of-pocket for repairs; the property owner pays for them, but not necessarily out of pocket either. In many cases, the property manager deducts the costs of repairs from the rental payments disbursed to the owner. For example, if you rent your house out for $1,500 per month and it needs a new dishwasher that costs $400, your property manager will give you $1,100 and a receipt for the dishwasher when delivering your monthly income from the property.
Is it Worth It to Use a Property Management Company?
A property management company can take away all the stresses of owning an investment property. For most people, that’s pretty significant. You don’t have to worry about vetting tenants, doing background checks or staying in compliance with local, state and federal law. You won’t have to lift a finger to make repairs, collect rents or going to court in the rare event that a tenant doesn’t pay. You won’t have to do walk-throughs, hire cleaners or handle security deposits, either. If you own a rental property, one of the best choices you can make is to work with a property management company you can trust.
Do You Need to Learn More About What Property Management Is?
What is property management? It’s a way for you to leave behind the struggle of managing day-to-day operations in your rental property. We’re here to help you every step of the way – all you need to do is sit back and collect your rent payments.
Call us at 617-262-3075 or fill out the form below now to find out how we can take all the stress out of renting out a property in Boston. We’ll take it from here!
