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Property Management

Landlords tend to own and lease multiple properties and each property comes with heavy responsibility. The landlord of a property is responsible for the physical condition of the property, collecting rent from tenants, and approving applicants. Keeping up with these responsibilities can be overwhelming especially if a landlord owns several properties. Some landlords hire property managers or property management companies to manage the responsibilities of the property and act as a buffer between the owner and tenants. This frees property owners from much of the on-site maintenance responsibilities and makes monitoring multiple properties a lot easier.

Property managers are generally responsible for all on-site needs of the physical property and tenants to effectively manage every aspect of the property. Owners typically grant property managers some degree of Power of Attorney to handle legal tasks and resolve maintenance issues. This gives property managers the ability to perform their basic responsibilities. These responsibilities include proper screening and background checks of applicants, contracting leases, accepting rent payments, and resolving any maintenance issues. Screening applicants may require a property manager to run a criminal background check as well as a credit check to make sure the applicant can pay rent. The Power of Attorney also helps the property manager resolve and pay for maintenance issues and deal with legal matters with the tenants such as evictions, non-payment, and harassment. It is crucial for property managers to be familiar with Federal Fair Housing laws to perform their duties legally.

Certain states may have laws that require property managers or management companies to be licensed real estate brokers. Property managers may not be able to collect rent, list properties for rent, or negotiate lease contracts without proper licensing. Owners are not required to have a real estate license to manage their own property but are required to have a business license to rent property. Owners may also be required by state law or local governments to hire property management if they live away from the property. It is important to be familiar with the local requirements regarding real estate licensing and the necessity to hire property management to stay in compliance with the law.

Property management services help landlords manage multiple properties by handling the on-site responsibilities of a specific property. Some local governments require property managers to be licensed in real estate and may even require property owners with off-site residences to hire property management. Becoming familiar with the laws and regulations regarding landlords and tenants is the easiest way to stay in compliance while finding the most effective way to manage a property.