Property Management 101: Everything You Need to Know

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Property management involves a lot of responsibilities that the average homeowner isn’t ready to handle, like finding tenants, dealing with maintenance issues, and tracking rent payments. This can take time away from doing what you enjoy. Therefore, many people hire property managers to do this work instead.

As these professionals handle your property, it’s essential to know what they do. Why do you need one? And how much should you expect to pay?

The First Step Towards Hiring a Property Manager

Property management can be an overwhelming topic for many new property owners, but it doesn’t have to be. Before you interview potential property managers, you need to know what is important and how they can help take your properties from good to great.

Every owner should consider the following critical factors before hiring a property manager.

  • What are the monthly fees?
  • Does the company handle all of the maintenance on my rental units?
  • Is there someone available 24/7?
  • Do they provide tenant screening or lease signing services?

These questions may not seem like a big deal at first glance. However, these four elements can make or break a relationship with your property manager.

What is Property Management Fees?

Property management fees can be an integral part of owning rental property. These are usually a percentage of the monthly rent charged by the property management company to cover the costs associated with running your properties.

For example, if your monthly rent is $1,000 per month, then your fee might be 10% or $100.00 per month. Your property manager will charge the fee regardless of any damage done to the unit during that month or not.

What are the Legal Aspects to Look Out For?

You must know all the legal steps you need to take for your property manager to have access and rights over your property. As a tenant, you don’t want any surprises when it comes to collecting rent.

If someone is not a licensed property manager, find out if they are bonded or insured. This ensures that you are covered in case something happens on their watch. For example, if your water heater breaks and you don’t replace it promptly.

Property management companies typically have a legal contract with owners and tenants that spells out what they are responsible for and, in turn, what you as an owner or tenant are responsible for.

Before signing your lease agreement, make sure you understand your responsibilities as a tenant and the expectations of your property manager. Most importantly, make sure there is no clause stating that both parties will follow local laws but does not mention any laws in particular.

Perks of Having a Great Property Manager

Happy tenants mean consistent cash flow. If a tenant is happy with their home, they are less likely to move and more likely to stay longer. That’s why you must have a property manager. They can attend to everything from replacing a light bulb in an apartment, dealing with broken appliances, or even evicting tenants who do not pay their rent. You can focus on your life and let property managers deal with all tenancy-related issues.

A good property manager will also help find new renters if space is available. In this way, the properties don’t sit empty. If you are looking to hire expert property managers in Sarasota, Anna Maria Island, Longboat Key, and the surrounding regions, get in touch with Jennette Properties. We offer end-to-end property management solutions with a friendly and responsible approach. Contact us today to get started.

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