It depends on the management company and what kind of property is being managed. Office space has different needs than retail space or an apartment complex. In this article I am going to cover what services you can expect from a management company overseeing a residential property.
Here are the highlights of a property management company’s duties.
Research rental rates and set the rent
Create and place ads (online and offline)
Prep and show the unit to prospective tenants
Process and screen tenant applications
Collect the rent
Deal with delinquent tenants (sometimes includes evictions)
Go to court to represent landlord when necessary
Regularly inspect the property on the inside and outside
Provide accounting services including monthly financial reports
Handle indoor and outdoor maintenance and repairs
Even though many firms provide these functions, property owners should never assume that their management company will or won’t be performing these services. All management services should be discussed in detail up front, including any additional fees. Afterwards the contract needs to be reviewed to make sure it is in line with what was discussed and there are no surprises. A lot of the disputes that arise are caused by a misunderstanding of who would be doing what and how the relationship would work. Make sure everything is laid out clearly up front to avoid conflict down the road.
Lastly, remember that its not just what the management company does but how they do it. They will be stewarding one of your most valuable assets so make sure you do your homework beforehand and interview more than one management company. Read the "Property Management Hiring Guide" to know what to look for in a property management company.