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What is a Landlord responsible for? The Role
of the Landlord (After you've hired a Property
Manager)
If you are thinking of hiring a management company to manage your property, you should carefully consider the property management agreement that you are sent. In this agreement, you are given an outline of what the role of the property manager is, which tasks they handle, and liability clauses in case of an emergency or other situation. While these agreements are standard, if you do not feel comfortable with them, you can always hire a person who does not work for a company as your property manager, or you can look for a smaller company that is willing to work with you.
Landlord’s Rights
While you still have complete ownership of your property, if you sign an agreement with a property management company, you may have less say in their leasing practices, maintenance choices, and when you get your monthly payment.
Some landlord’s have complained that property managers will lease to anyone without checking references, interviewing potential tenants and vendors, and not collecting rent when it was due. While you can call the property management company and complain, if you signed an agreement that did not specify how you wanted leasing, rent collection, and other tasks completed, there is little you can do until your contract runs out. Unfortunately, if you signed a ten-year contract, it could be a long wait.
The same goes for maintenance costs. If the property manager has to hire a maintenance crew or private contractor to fix major problems, you will probably not get a say in who they hire. Also, in the property management contract, it states that the company will not be held responsible for poor work done by contractors and others. This means you may have to pay for poor construction or repairs.
Review your agreement carefully before signing it. This will determine how your property will be managed and what can be done if you are not satisfied.
Property Manager’s Responsibilities
What you are hiring a property management company to do for your property is up to you. Some property managers only help tenants and vendors with concerns they may have. They do not collect rent, perform any maintenance, or evict tenants or vendors when they can no longer pay their rent. Other property managers do all this including bookkeeping, invoicing, and hiring contractors to make repairs and perform maintenance. It will be up to you as to which responsibilities you would like your property manager to handle
If you want to give a lot of responsibility to your property management company, make sure they have qualified mangers that have been through landlord training, which is a course that trains landlords and others how to collect rent, evict tenants, and handle more confrontational issues. While you may pay more for these services, you will know that they are being handled by a professional.
Managing Your Property
By dividing up the responsibility, you will still maintain control over the day to day decisions that help keep your property valuable and enticing for new tenants and vendors. Carefully research property management companies before making your decision. There are many to choose from that will be able to take over some of the responsibilities so you will be able to spend more time pursing other interests.
If you decide to let a property management company take over all the responsibility of managing the property, you should still take an active role in visiting the property to see what is going on during the day. You can report anything you find substandard to the manager or the company. Being aware of how your property is being managed will help you decide if you want to keep the management company or find a new one once your agreement is over.
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