Responsibilities Of A Property Management Company
There are various reasons why property management companies are required. The main reason is that property owners cannot be too careful when it comes to managing their properties. A property owner can easily hire anyone for any reason and he or she won’t be held accountable for the actions taken on the property. This is why a property management company is required. Companies have different services they offer and are capable of managing property in an efficient way.
In most states, you have to get a Real Estate Broker’s License that lets you conduct both property management services and real estate sales activities at the same time. Some states also require a Property Management License that restricts you from conducting property maintenance and other property management services only. Your license will be valid for three years.
If you want to carry out your own tenant screening process, there are property management companies that provide this as well. Apart from property maintenance and tenant screening, these companies provide assistance during foreclosure proceedings. They are experts in providing advice and suggestions to help the owners save their homes. They also give useful suggestions to stop the sheriff sale and stop the eviction of the tenant.
Property management responsibilities
Property management companies will also help the owners in collecting the rents from the tenants. Rental fees are usually paid monthly but there are some who pay yearly. The fee depends on the rules and regulations set by the rental companies. Usually, annual rental fees are less than the one-time fees paid for the screening of the tenants and other services. These companies collect rents from the tenants until the due date.
Besides collecting rents, the property management company will also be responsible for collecting late fees and penalties. The late fees are for the breach of contract by the tenant. When there are many tenants in a building, the property management company must handle the collection properly. Most owners will hire property management companies because they do not have the time to do all the tedious work. As a landlord, you would prefer the tenant to pay their rent on time. Besides, if the tenant has failed to pay the rent on time, then you can consider legal action against them.
On top of these responsibilities, the property management companies will also take care of the financial obligations of the landlord. This includes paying the insurance for the building and the tenants. The property management companies usually have contracts with the insurance companies to make sure that the landlord’s insurance covers all the damages and liabilities faced by him. In any case, the landlord must notify the tenant in writing about the insurance policy and if it is inadequate, the tenant can choose another one.