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One important role is that of acting
as liaison between the landlord and tenant. Duties of property
management companies include accepting rent, responding to and
addressing maintenance issues, advertising vacancies for
landlords, and doing credit and background checks on
tenants.
In exchange for the service they provide, property management
companies charge landlords a percentage of the gross rent
collected each month (typically 3-10%), in addition to
lease commissions.
If disclosed in the management agreement repair costs may be
marked up by a percentage by some property managers. Some property
management companies also manage home owner associations (HOAs)
and condo associations.
In addition to managing income
and expense related activity, property managers may also manage
construction, development, repair and maintenance on a property.
The role of the property manager in repair and maintenance is
large part of a property manager's function.
Property manager relations with
Tenants gives a face to the Landlord and provides them the
necessary buffer servicing their desire to profit and distance
themselves from their tenant constituency.
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The property
manager shields the landlord/owner from their tenants.
Many, many long time investors will tell you that the
tenant should NEVER know who the landlord is, where they
live etc. Other small hands-on owners WANT the tenant to
know who they are. Find a happy median depending on your
involvement in the property - whether your handy and do
the repairs - or knock on the door for rent. There are
times when you're the painter and the tenant has no clue
your the owner. That is the small owner.
For the larger investor or
hand-off - the property manager is your key.
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There are many facets to this
profession, including participating in and/or initiating
litigation with tenants, contractors and insurance agencies.
Litigation alone is at times considered an entirely separate
function, set aside for trained attorneys. Although a person or
persons will be responsible for this in their job description,
there may or may not be an attorney working under a property
manager. Special attention is given to Landlord/Tenant law and
most commonly evictions,
non-payment, harassment, reduction of pre-arranged services, and
public nuisance are legal subjects that gain the most amount of
attention from property managers. Therefore, it is a necessity
that a property manager be current with new laws and practices in
their given localities, cities and states.
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