Investor Files: The Vital Role of a Property Manager

What is a Property Manager?

Property management is the process by which a property owner hires a third party to oversee the day-to-day operations of their real estate investment. This can be any type of property whether it’s residential (e.g. condominiums), commercial (e.g. hotels), industrial (e.g. warehouses), or special-purpose real estate (e.g. schools). The main objective of hiring a property manager or management company, like Torres Turn Key, is to maintain the value of the property while also generating income for you, the owner.

It can be overwhelming for owners to address tenant concerns, as well as handle legal or financial issues. This is where a property manager steps in. Not only do they have a wealth of knowledge and expertise but they also spare property owners daily management responsibilities. Many property owners don’t have the time, skills, or resources to manage all of the rental properties in their portfolio on their own. Some landlords don’t actually “run” their properties; instead, they use their rental property strictly for investment purposes and their primary intention is to earn income. Therefore, they hire a property manager to run it for them. An investor can also be an absentee landlord who resides far away from the property and therefore has little involvement if any at all. In this case, an owner will assign a property manager to oversee the investment on their behalf.

To manage your rental properties, it’s worth looking into hiring a property manager. Rochester, NY (where we’re based) is a bustling city that attracts many property investors. It boasts a low unemployment rate, affordable housing, high-quality infrastructure, and excellent amenities. The city also has a range of properties to suit families and professionals alike. When they work with a property manager, Rochester property owners can realize the full potential of their investment and landlords can rest assured that their asset is performing well.

What Are Property Manager’s Roles and Responsibilities?

Tenant Management

A property manager handles tenant inquiries and is responsible for leasing out the property. They conduct viewings of the property and work closely with potential tenants to oversee the leasing process from end to end (including handling all relevant contracts). They’ll also be responsible for ensuring that background checks are carried out on tenants, and they may be involved in rental collection too.

Property Maintenance

Dealing with the upkeep of properties is another key responsibility of property managers. This includes preventative maintenance as well as prompt completion of any required emergency repairs or renovations. Property managers also keep in touch with contractors to ensure that the property is safe and secure. 

Financial Management

Another important part of a property manager’s job is to take care of the financial operations of the investment. Property managers set budgets, create detailed financial reports for the property owner, and ensure effective financial planning.

Legal Compliance

Property managers make sure you’re compliant with local, state, and federal laws. They must ensure that all lease agreements and property operations adhere to the latest legal standards, minimizing the risk of legal issues for property owners. They also make sure that the property meets health and safety standards and are well-versed in landlord-tenant laws and regulations.

Marketing and Vacancy Management

Property managers need to be able to market properties to attract and retain quality tenants. They use various platforms to list properties and manage showings, helping to reduce vacancy periods and maintaining a steady rental income.

Owner Communication

Regular contact between the property manager and the property owner is crucial so that the property owner is kept informed about all activities related to the property. Property managers update owners on how the rental property is fairing financially and in terms of occupancy, as well as any pressing matters that require attention.

How is a Property Manager Paid?

The cost to work with a property manager can vary depending on the company and your location, but on average, you can expect to pay somewhere between 8% and 12% of the monthly rental income. It’s possible that you’ll also be charged an additional services fee when the property manager places a tenant or takes care of a major renovation for you. It’s in both the manager’s and the owner’s interest to maintain property value and keep the rent rolling in.

What Are the Benefits of Hiring a Property Manager?

For property owners seeking to get the best out of their rental property, hiring a property manager is a sound decision for maximizing rental income while minimizing the hassle associated with property management. Here are some of the main benefits:

Time Savings

Managing a property can be time-consuming and demanding. This is especially the case if you own several properties, making it rather challenging to keep all of your tenants satisfied. Through the services of a property manager, you can be sure that your properties are in good order, your tenants are happy, and your investment is safe.

Expertise

Professional property managers possess the market knowledge and experience to effectively manage real estate which translates into increased tenant retention. When you have a property manager, you don’t have to worry about managing properties remotely as you’ll have someone to take care of them for you.

Legal Protection

Property managers make sure you’re compliant with housing regulations and property laws, mitigating any potential legal issues.

Quality Tenant Selection

Property managers perform thorough tenant screenings, which lead to dependable and responsible tenants being secured. This contributes to lower vacancy rates, reduced tenant turnover, and steady rental income.

Reduced Stress

Dealing with repairs, emergencies, and tenant concerns can be stressful. If you have a reliable property manager on call to handle these matters, it can help to take the burden off your shoulders.

The Bottom Line

Working side by side with a professional, local, and seasoned property management company such as Torres Turn Key is essential for property owners looking to successfully invest in real estate. In Rochester, the benefits are amplified by the city’s strong economy, low cost of living, and high-quality infrastructure and amenities. At Torres Turn Key, your property is our priority. We have over 15 years of experience in Rochester’s property management scene and a track record for helping our clients maximize the return on their investments. We'll guide you to build an investment portfolio that will generate the profits you need to live the way you want. By hiring a property manager, Rochester investors can ensure their properties are well-managed and run professionally, legally, and most importantly, profitably.