Why Do You Need a Property Manager?
Income-generating property is a lucrative and very rewarding venture and is a lifelong dream for most people. However, managing a property is another challenge because of the effort and time investment needed. Other challenges may result from geographical constraints, busy work schedules, or ill health, among others.
Property managers can offer you a variety of skills and technical knowledge in real estate, with the crucial ones being:
- The setting of competitive rental rates
- Collection and remittance of rental payments
- Tenant recruitment
- Tenant management and conducting repairs
- Marketing your premises
- Managing vendor ties
- Ensuring your premises comply with housing regulations
- Maximizing the profitability of your time and available resources
What to Know as a Property Manager
Property managers offer technical know-how on property management, and their knowledge of several matters is crucial for profitable returns. As a property manager, you should have a good set of marketing and customer handling skills that are attractive and provides satisfaction to potential tenants.
It would be best if you also were a critical assessor of potential clients taking into account their behavior and financial history. Managing tenant emergencies, conducting regular inspections of the premises, and supervising repairs on the property are must-knows for a property manager.
As a property manager, you should have an effective method of rent collection and report writing for accountability purposes with your employer. All the necessary documents, such as insurance cover and licenses, should be in order.
Lastly, you should have a reasonable service fee that is rewarding and competitive, which should all be reflected in your employment contract.
Seven Legal Forms That a Property Manager Should Have On Hand
As part of due diligence, every property manager should have several official documents at all times. These are:
1. Rental Application
A rental application is a document containing a property’s rental terms and payment information, among others. The tedious nature of interviewing potential customers may result in omitting vital information. Thus, the application aids the manager in collecting a series of essential data from potential tenants, which they use to assess a tenant’s admissibility. You can gauge the applicant’s pay stub, bank statements, and salary from the document.
2. Residential Lease
A residential lease is a document that outlines both the tenant’s and landlord’s rights and obligations. The home lease is necessary for both parties since it is a legally-binding agreement that must be respected unless the lease specifically provides otherwise, and it contains:
- Information about the premises
- A list of all the tenants
- Pet regulations
- Rules regarding visitors and parking
- Duties related to utilities
- Information about the lead’s legal status
- Information about deposits, late fines, and rental costs
3. Property Manager Agreement
A Property Manager Agreement is a document that determines how your property manager handles maintenance. The paper gives your manager access to resources to develop and repair the property, among other duties.
To ensure your manager performs their duties to the best of their abilities, outline all the responsibilities you want them to handle in the agreement.
4. Lease Amendment
A lease must occasionally be improved for the benefit of the landlord or tenant. An amendment can be made when both parties agree on various areas to change, which allows the remainder of the lease to remain in effect.
A Lease Amendment form is a document that simplifies altering the conditions of a lease, whether you’re raising the rent, adding a parking space, or allowing a renter to own a pet within your premises.
5. Independent Contractor Agreement
Property managers generally take care of repairs, whether they contract the work or complete it themselves. An Independent Contractor Agreement outlines the pricing for the job, how long you anticipate it will take, and what defines a finished result if the task is relatively difficult.
It can be used for cleaning, plumbing, decorating, and other things. Moreover, the agreement may outline guidelines for sorting out various challenging tasks.
6. Personal Insurance Cover
Personal insurance is a policy that guarantees a property manager’s alleviation from unforeseen accidents that may occur during their employment duration. Other than ensuring your safety, it helps the property owner map out their responsibilities to their property managers, such as fire safety.
A license is a document showing a person has been granted permission to perform a particular duty. As a professional property manager, you should always ensure your work permits and other legal documents regarding your work eligibility are in order.
Therefore, a license prevents you from facing legal consequences of discharging services you haven’t been allowed to provide. It will also prevent your employer’s time and resources trying to prove their innocence of your negligent actions.
What to Double-Check With Your Property Manager Before You Finish Signing Everything
Before signing agreements with a property manager, you ought to ensure their licenses are in order. Their professional credentials are authentic, and their professional experience benefits you, your expectations, and your responsibilities. All the terms of the contract should also be agreed upon before signing.