A lot of people wonder what the responsibilities of a Property Manager is.

The Property Manager is the point of contact for the Landlord and the Tenants.

For vacant properties, it begins with leasing. Advertising, showing the space, then qualifying and reviewing potential renters applications. Once approved, the Property Manager prepares the lease and forwards for execution by the tenant. Some leases have additional paperwork attached, depending on the property and/or location.

Typically managers will do a walk through of the property prior to handing over the keys. Photographing or videotaping the property before the tenant takes possession, as well as once they vacate is important. Most good managers will also  document any deficiencies to the property, before & after the tenant is in possession.

Then once the tenant is in the space, the Property Manager becomes the point of contact for the tenant. The property manager handles complaints, maintenance requests, lease extensions, rent increase/reductions, notices to tenants, late fees etc… The manager collects all rents and disburse’s funds to the Landlords. Paying all the properties expenses (mortgage, property tax, insurance, etc…). Furthermore the Property handles the book-keeping for the property. This may include preparing financial statements, or monthly reports. In addition, the Property Manager performs routine walk throughs of the property, or drive-bys. Maintaining that the property insurance is up to date is also important.

A Property Manager alleviates all the day-to-day management responsibilities for landlords & investors of real estate.

Turnover in a rental complex is typically a cause for concern for landlords. However, turnover in a unit can often be a benefit. If a problem tenant previously occupied the unit, then landlords cannot wait for this person to be removed. Turnover is typically caused by a tenant deciding to move to a different type of residence or simply relocate to another city or state. This kind of turnover is uncontrollable, however, there are options to manage turnover and even control.

The national turnover rate in 2012 was set at 54 percent. This has proven to be a consistent figure since that year, with a single community needing to replace half of its occupants per year. Classical thinking would lead landlords to believe that a vacancy could still be filled at a higher rate. However, this is becoming increasingly difficult to do because of the economic downturn.

While one cannot stop someone from a desire to move to a new city, there are many strategies that landlords can use to aid in reducing turnover in their buildings. Residents need certain aspects of the place they live in to be maintained. There must some form of a “sense of community” between all residents (something that could prove difficult if the rental complex is just a building on a lot). If this proves difficult to establish, landlords should look to improve the appearance of their units and exteriors as much as possible. This means that they should either take the initiative and monitor the condition of these factors, or hire a competent on-site/off-site manager to routinely inspect these qualities. Residents also appreciate heightened safety and security in buildings. Perhaps above all, residents appreciate timely and dependable response from those managing the building. All of these factors are used by residents to determine the value of the property, as well as if they would like to remain where they are. Landlords are encouraged to instill some form of community rules and regulations to keep tenants pleased.

Source: http://www.aoausa.com/magazine/?p=1846

Rental housing demand continues to climb causing an increase in rents and denting the disposable income of Americans. The current rental vacancy rate – which is determined from the number of available units on the market that are unoccupied – dipped by half a percentage point to 8.2 percent in the final quarter of 2013. A peak was seen in 2009 at 11% rental vacancy, but this figure’s downturn could be blamed on the recession and the struggling housing market for that year range.

Families are turning to rentals for many concerning reasons. Many families were displaced because of rampant foreclosures. Lending standards were stricter for this period causing the inability of many families to obtain affordable mortgage packages. Others came to the conclusion that buying and maintaining a home is out of reach.

Demand for rental housing is high while supply is low causing landlords to increase prices. October through December 2013 saw a 3 percent hike in median asking rent for unoccupied units (up to $746 in 2013, as opposed to $724 in 2012). This rental rate high surpassed overall inflation for 2013, rising by double. Because of this, disposable income of citizens was hit considerably. Disposable income fell 0.2 percent in December 2013 from November – a second decline over a three-month period. Americans had to rely on savings money to satisfy their spending needs.

If rental prices continue to rise, this could encourage families to take the plunge and buy a home. The construction and development industries are also on the rise with more multifamily units, including mixed-use projects, being developed for 2014. Additionally, current homeowners should be encouraged to potentially sell their homes, due to the steady growth of the economy coupled with higher home prices. If these families move on to new home options, this would increase supply of housing for new buyers or buyers that have been scouring the market for some time. 

Source: http://blogs.wsj.com/economics/2014/01/31/rental-housing-grows-more-scarce-driving-rents-up/