Property management is the process of managing properties. And the people who manage properties are known as property management contractors. These are generally companies that have different types of people who have different skill sets. In a nutshell, they are a one-stop shop for managing properties. These properties could be residential, commercial, industrial, or special-purpose. You can learn more about these properties and their examples on this link.
In other words, you can think of these companies as middlemen between landlords & tenants.
In this article, I will give you a clear overview of property management and answer the most common questions.
Let’s get started.
A comprehensive explanation of property maintenance questions
I will try to make this as short as possible so you don’t get bored. If I need to explain further on a question or if that needs a reference, I will refer to a different content that we already explained on this website.
Without further ado, let’s start.
What is a property management agreement?
A property management agreement is a negotiated and agreed terms & conditions. These are legal bindings between two parties. These two parties could be the property maintenance contractor & landlord or tenant.
A contractor can have agreements with hundreds of landlords and he may have lots of different properties in his control. On the other hand, the same contractor can have agreements with many tenants.
These lease agreements include dos and don’ts and every legal aspect. If you’re a tenant, see what to look for in a lease agreement to avoid hidden fees and ensure security.
Are property managers worth it?
If you’re a landlord and managing your property yourself, then you’re missing a lot of opportunities and doing everything in hard way. You’re spending a lot more than the contractors, and the perfection will be not so good compared to the property managers or contractors.
Hiring property managers is worth it. Otherwise, most of the landlords won’t hire them anymore. If you don’t know their roles, duties, and what they do, see this detailed post.
If this is your first time becoming a landlord, you may not notice the importance yet. But experienced landlords understand the worth. You can also consult with other landlords whom you know and trust and make your decision later.
Do property managers find tenants?
There is a lot to expect from property managers. From finding tenants to screening, rent collecting, and everything in between.
A property manager also enhances your property, takes professional photos, and advertises in different channels to find tenants. Also, many prospective tenants contact them every day. Managing properties, tenants and landlords is their daily job.
So if your property is vacant, you can reach out to your nearest property management companies that can find, screen, and place a good tenant in your rental property. However, not all companies are equal. So aware of their quality, experience, working history, and goodwill.
Aside from that, property managers also arrange the lease agreements, and paperwork, collect necessary documents, background checks, security deposits, and everything in between.
In some cases, you may have difficulties collecting the rent. As a landlord, it’s not worth your time to contact the tenant over and over. A property manager can collect the rent as I mentioned earlier. However, if a tenant doesn’t pay rent, many people think about eviction in the first place which is a bad idea and it causes extra money for you. For more detailed step-by-step instructions for landlords, see this post if the tenant doesn’t pay rent.
Can property managers enter your apartment?
When you rent a property, it’s yours at least for that time and until the lease agreement ends. So it’s up to you whether you want property managers to come inside your apartment.
Property managers and their employees are professional and well-trained. They will not enter your apartment without your permission and valid reason or until you call them for help.
In a gist, property managers can enter your apartment if you allow them to. They can’t force you.
Can property managers raise rent?
Property managers can raise rent if you have a lease agreement with them. However, they can’t raise the rent until the current period ends. This is also true about landlords as well.
Most of the time, tenants may not have direct access to the landlords. And every communication will go through the property maintenance company (if the property is maintained by a contractor).
So you can think of these property maintenance companies as the substitute for the landlords with the additional power to help you and enhance the property.
When raising the rent, there should be valid reasons and appropriate time. To learn more about why landlords raise the rents, see this post.
Not only for landlords, these reasons are the same for maintenance contractors.
Does property management include maintenance?
Yes, property maintenance includes maintenance. From the annual inspection to on-demand maintenance they do all the heavy lifting for you.
What are property maintenance fees?
Property maintenance fees include the following:
- Initial account setup
- Property management
- Tenant placement and leasing
- Lease renewal
- Annual inspections
- Early termination
Some of these fees are optional and not applicable to everyone (depends). There are general categories of the charges.
Can property managers evict tenants?
If a tenant repeatedly violates lease agreement terms and doesn’t pay rent, property managers can evict them. However, there are legal processes and some prerequisites before proceeding with the eviction process.
See this section of another post to learn about the warning and starting the eviction process.
Can a property manager sign for landlords or on behalf of the landlords?
If the lease agreement is between you and the landlord, then property managers can’t sign on behalf of the landlords especially, for financial transactions. However, if the agreement gives the power to the property manager then he can.
Why are property managers so rude?
Not all property maintenance companies are equal. Nor do all contractors have the same level of skills, education, training, and manpower.
However, if your property manager appears to be rude, it may be due to their lack of education level, proper governance, and accountability. However, you can file a dispute if your property manager is rude.
Are property managers landlords?
No, property managers are not landlords. They work on behalf of the landlords to help tenants. They also help landlords as well. Think of them as a bridge between the tenant and the landlord.
Where to find property managers?
Property managers are everywhere throughout the USA. Based on your property location, you can find them by searching online or in your local community. However, check their working history, experience, ratings, etc. For quick instructions, see this guideline to find a good property manager.
Also, you can discuss with other landlords nearest to your location and ask for suggestions.
If your properties are located in Rhode Island (Providence, Pawtucket, Woonsocket), you can also contact us for a quick discussion.
When screening maintenance contractors, do not just depend on their reviews because some companies that pay agencies to collect reviews.
Does the property maintenance contractor keep a security deposit?
Maintenance contractors don’t keep security deposits from landlords. But they generally keep security deposits from tenants. This security deposit is equivalent to 2/3 months rent.
To learn about the reasons for taking security deposits and other aspects, see this section of another post. It’s a refundable deposit money that can be refunded or used for a few specific cases. You can learn them on the link that I mentioned.
Does property management include cleaning?
As I mentioned earlier, property management companies have different types of people with different skill sets. They also have cleaners as well. However, it’s typically not a scheduled action. But you can ask for cleaning services for an additional fee.
If a maintenance company doesn’t have in-house cleaners, they may outsource them. Whatever the case, they will handle everything for you. Most importantly, you don’t have to worry about security when bringing cleaners to your living home via a property maintenance company. They will take care of the security and take responsibility.
How often can a property manager do an inspection?
Most companies do a yearly inspection which is scheduled. Aside from that, you can ask for on-demand inspection for additional cost.
In our company, we do quarterly inspections which are free. You can see our pricing here.
In this article, I tried to give you a clear overview of the property managers and answered most asked questions about them & their workflow.
If you still have any questions, please feel free to ask in the comment so I can update this content. This could also help future readers who might have the same question as you may have. So questions are always welcome.
We are also a property maintenance company helping hundreds of landlords & tenants throughout Rhode Island. All these answers are based on our own experience.