We take phone calls on a pretty routine basis from people who are considering renting out their home who really don’t understand, at a very basic level, what a Property Management company does.
It’s one of those, “So, how does all this work?” questions.
So, I thought I would spend a few minutes going over, very generally, what a Property Management company does. I’ll first preface this by saying that all PM companies are a little different, but there are some basic functions that most full-service property management companies perform.
The goal of most management companies, is to handle EVERYTHING for you. This is why you pay them, so that you don’t have to be involved, unless you really want to be.
I’ll break it down into two main categories: Leasing and Management.
First, the leasing part. Once you sign a contract, generally called a Property Management Agreement, with a management company, their first major order of business will be to get the home leased.
Indianapolis Property Manager's Leasing Responsibilities
This will involve several things, including:
- Advertising the home for rent
- Showing the home to prospective Tenants
- Screening applicants
- Negotiating rent terms
- Signing a lease
- Collecting the deposit and all required pre-move in rent
- Moving the Tenant into the property
Generally, the property management company will then charge you a fee for leasing the home.
For the second major category – management – there are also several components here as well, including:
Property Managers Management Responsibilities
- Collecting monthly rent and sending the proceeds to you each month
- Providing monthly and year-end statements
- Managing all maintenance requests on the property and paying Vendors on your behalf
- Handling any Tenant problems or disputes
- Renewing the lease or processing the move-out
Again, these are very general concepts, but should give you a good idea of what a property manager actually does.