Before you decide to hire a property management company, you must know the kinds of tasks they work on, and how they focus on things like tenant disputes and rent collection. The following points will cover the basic responsibilities of property managers:

Handle Marketing and Leasing

When you hire a management company for the first time, they will need to do an initial walkthrough of your home, something which may include recommendations on things you should update or repair to improve its chances. The recommendations are there to improve your home, making sure you can attract better tenants and reduce long vacancies. There may be a need for crucial repairs to bring the home to comply with regulations, such as smoke alarms and door locks, so keep that in mind as well.

There should be examples of the types of photos the management company may use on their website. The photos should showcase the rooms with good lighting, allowing potential tenants to explore them without setting foot inside. Property management companies must also have skills in setting the right amount of rent for the area. Good companies are running rental analyses that break down what the home must rent for and the reasons behind that.

Selecting and Screening Your Tenants

Property managers are there to also screen prospective tenants. This means they will run credit checks, background checks, rental reference checks and so forth. This helps find the best tenants for your property. Some companies will choose the best from a handful of applicants, while others go for the first available candidate that fits the bill. 

The more established management properties out there have written rental criteria when it comes to choosing tenants. This document is written down and it allows you, the owner and the tenants to see why they were chosen or not. It also decreases the chances of any claims of a Fair Housing violation if the property manager can point out the published criteria for application denial.

Collecting Rent and Handling Accounting

The management company will also be responsible for rent collection from your tenants. The companies will have a specified property accountant handling that role. They will be there to deal with the responsibilities and make sure that people are paying on time and enforce late fees if they must.

Should any tenants refuse to pay rent, then the company will be handling the eviction process as well. They will also handle the legal matters attached to that process. Once the rent is paid, they will also deduct the portion of the sum that goes to them for a management fee, the miscellaneous charges for repair fees and so forth. The remainder of the sum goes to you. Most companies will have a statement with the deposit that shows the expenses for every month.

Handling Maintenance

Property managers also handle the maintenance of all your properties. This means any initial repairs and the improvements necessary to get the property rent ready. They will have a list of trusted vendors used to handle the repair jobs. Some of those will also have a contractor's licence and may even operate their maintenance firms. They will have a process for maintenance requests in place, based on urgency. That allows them to handle things promptly and without any complications for you and the tenants.

Most of the property management firms out there have a process for tenants submitting maintenance requests, including for any potential emergencies that happen after hours. Depending on the company, those may be submitted over the phone or online through a maintenance portal.

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Block management involves the managing of blocks of flats with individual properties under the ownership of leaseholders. A company or individual manages the properties of the block.

This involves taking care of maintenance, looking after the communal parts of the building, taking care of service charge collection and more. Managers have legal responsibilities to handle as well as maintenance.

Portfolio landlords are looking for new ways to use their knowledge, all so extra income can be earned, so managing properties is becoming more popular. The following points will help you understand the laws covering block management and obligations if you’re a manager:

Knowing the Lease Terms

Oftentimes, individual flats in a block may have very different lease terms. As the manager, you will need to figure out what each owner is allowed to do, and what you must do for them. This is one of your first responsibilities as a block manager.

Lease Terms Enforcement

If any of your leaseholders breaches the terms of their lease, such as making unauthorized changes to the property, as well as possibly sub-letting through a company like Airbnb, you will have to address the issue.

Handling Insurance

In each case, the owners’ service charge should include the contribution to the building’s insurance for the entire block. You will need to inform the insurer about the state of a few things, specifically:

The number of owner-occupied flats
The number of rented-out flats
The kinds of tenants living on the premises

These simple questions will help you get the right insurance coverage for your specific situation.

Health and Safety Inspections

As the building manager, it will be your responsibility to ensure the site is always in compliance with health and safety regulations. You will also need to follow maintenance work only carried out by approved contractors.

Fire Safety

You will be responsible for risk assessment and you need to cover all the fire safety measures your building needs for communal areas. This includes alarms, extinguishers, fire doors and more. The best way to get this done is to have a visit from a professional fire safety representative. This will give you the assessment and the exact specifications of what needs to be changed.

Routine Inspections of the Premises

You have to schedule regular inspections of all communal areas, both inside and outside your building. This is necessary to ensure the building is in good condition and that nobody violates the terms of their leases.

Keeping Records

The more detailed, the better. It will be your responsibility to keep those records regarding work done on the building, inspections, payments made and so forth.

Accounting Responsibilities

The block manager is also responsible for collecting service charges, ground rent, budgeting your management account, resource allocation and more. Ensuring the accounts are prepared for your shareholders of the block falls under this point. Management companies benefit from appointed accountants in this case.

Section 20 Notice

This is something that needs to be carried with certain building works, with the cost of each individual leaseholder being no more than £250. There is a consultation procedure in three steps that the manager needs to follow in such cases. If this isn’t done properly, you as the manager will be liable for the cost of the works, over £250 per leaseholder, so keep that in mind.

Keep Up to Date with the Law

You need to ensure you know about any changes in legislation and amendments to the existing laws that may affect the block and your management work, so don’t underestimate that.

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If you own an investment property, you know that you can gain a lot of financial benefits. However, you have to be prepared to manage the said investment well, or you risk a financial loss instead. This is the main reason why many landlords prefer to put this task in the hands of professional property managers. If you are a landlord and you are still contemplating whether to do it, you only need to consider the following reasons for such a move: 

• Tenant screening – one of the major duties of property managers is to provide tenant screening. This means that they ensure the landlord gets a vetted tenant, who is much less risky than a tenant who they know nothing about. The company the property manager works for will follow an established process for vetting new tenants, assessing all risk factors involved. All of this ensures the tenants that end up in the property stay for longer and increase the landlord’s profit. Because the property manager will get important information like proof of income, references and credit history, the landlord can count on reliable tenants for their property. 
  
  
• Good understanding of property management laws – every property owner and tenant needs to be educated about various housing and safety laws. And sometimes the landlord is simply no expert on the matter. This is where the property manager comes in. They can share their knowledge on the matter and make sure that everyone understands their duties and responsibilities. 
  
  
• Dealing with maintenance and repairs – one of the major aspects of rented properties lies with the maintenance and repairs needs of the tenants. A landlord needs to be on top of any regular maintenance work, and also ensure that any emergency repairs are carried out promptly. No tenant will like it if they have no access to hot water for example. This is something that a property manager will address. They will deal with the maintenance process by working with trusted contractors. If there is a need for emergency repairs, they will be quick to respond. What is more, they will do a regular checkup on tenants and the property, to ensure any small issues are addressed before they have had a chance to turn into a major problem. 
  
  
• Routine inspections – it is important for property managers to do routine inspections of a property. The goal is to have a thorough move-out and move-in inspection process, which ensures the property is ready. More importantly, the property manager will see to it that any problems are addressed, saving the need for the landlord to get into a discussion with the tenant and avoiding conflict. 
  
  
• Evictions – if tenants break the tenancy agreement they sign, or don’t pay up their rent, the property manager will address any eviction issues. They will guide the landlord and the tenant on the legalities involved in this move. 
  
  
• Saving time – a landlord will need to deal with a lot of other work and sometimes they will have no time to deal with tenants, repairs and everything that is involved in managing a property. That is why it is very useful for them to rely on a good property manager. The latter can deal with any such tasks, leaving the landlord more time to deal with their work. Saving time means saving money! 
  
  

When it comes to getting help for their investment property, landlords can always rely on the assistance of property managers. Getting these services means saving a ton of time and effort, all the while ensuring many benefits for both the landlord and the tenant. 

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Without a doubt, the rental market is facing a lot of challenges due to the pandemic. It is the property managers, who have faced the most of them. From trying to accommodate safer and healthier environments, to avert all sorts of damage that delated rental payments could do to the rental ecosystems. A lot of new trends have arisen as an answer to the problems. The most important ones are likely to continue in the future and become the norm, not just goals for property managers. Here are few examples of such trends:

• Property managers are spending more time dealing with the concerns of their residents – in the past, it seems it has always been the same 3 priorities that property managers rank as most important – profitability, efficiency and growth. However, things have changed in 2020, with residents moving to the list of top priorities. This reflects the change in how property managers spend their time during a tumultuous period like this. The main focus has been on renters and the homes they occupy – keeping units full, keeping up the rent money flowing, all the while ensuring the safety of all residents. There is more communication with renters and more active steps to reduce the strain on people who have lost their jobs. Some property managers are helping residents with filling out financial aid forms, and otherwise being responsive to problems that have been outside their scope, until now. That is a trend likely to continue.
  
  
• Technology embedded in the property management business – for those property managers who have not moved most of their processes online, things have been really difficult. This is a trend that is likely to remain for a long time. After all, staying connected and getting things done without necessarily meeting people is no longer an option currently. Property management technology trends have risen to meet this challenge. They have brought many advantages to an industry that previously relied on a lot of face-to-face connections. And property managers report that such changes have brought positive outcomes to their work. It is the customers of these services who have benefited as well. From virtual tours of rental properties to electronic leasing, everyone seems to be on board with the new means of doing business and that is likely going to improve even more from here on out.
  
  
• Owners need more insights and communication from property managers – during the pandemic, clients of property managements services find a better appreciation of the expertise that property managers bring in regards to rent collection and working on payment plans. With evictions and late fees changing due to the Covid-19 pandemic, and the costs of running rental properties going up, it is property managers that need to bring a balancing act. They have been expanding their services and keeping closer communication to property owners about regulatory changes, vacancies and payments. Naturally, owners are all in favour of this communication continuing in the future.
  
  
• Property managers are relying on new ways to grow their business – if there is one thing that the pandemic has helped property managers with, it is to highlight the importance of strategy and technology are essential for growing the business. As regulations change, DIY property managers/landlords will not remain in the business, as profitability becomes harder to achieve. Strategies for growth based on objective realities and novel ways to boost the business will become more prominent in the years to follow.
  
  

These are all essential trends, born out of the events of the pandemic. They are likely to persist, changing and improving the property management scene in the future.

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Despite the fact the real estate industry is getting constantly outfitted with new technology and modern trends, it is property managers that seem to be facing persisting challenges. There are major factors, such as the state of the economy, but also smaller ones, like tenants, landlords and buildings. 

Sometimes it takes more time to resolve this than work hours allow. However, it is through sufficient planning and executing the right moves that property managers can stay on top of the main challenges in business. Here are a few examples: 

• Responsibility – for a landlord and a property manager to form a mutually beneficial relationship, they have to build trust. And when you think about it, it is property managers who are responsible for bringing in the right tenants through various screening methods. This calls for diligent evaluation, which is a responsible task to do. 
  
  
• Risk – there are a few liabilities and risks that every real estate management company needs to address. The managers can never afford to ignore any modes of health and safety inspections that should take place within the properties, like gas and fire safety, energy performance and electrical safety. Failure to execute any of these and properly audit the trail of activities associated is a risk for tenants, landlords and realty firms involved.
  
  
• Time constraints – a property manager fully understands how valuable time is, especially since they need to coordinate landlords, facility suppliers and tenants. This is very difficult to do, and it takes experience and the proper utilisation of technology to get right. 
  
  
• Support tech – speaking of technology, more and more property managers are starting to use cloud-based solutions. This allows them to greatly streamline and centralise their audits and streamline operations. Once the cloud-based technology is properly implemented, property managers can begin to take full advantage of it. 
  
  
• Operating costs – one thing that can affect the revenue of property managers is increased indirect costs. This means they will have to spend more on materials and tools for maintenance. There are certain initiatives, which can help them out, as long as they take the time to familiarise themselves with the program and how it can work for them. 
  
  
• Tenants – there is one thing every good property manager knows: it is much more demanding to bring new tenants in property than it is to renew a contract with any of the existing tenants. That is one of the greatest challenges that property managers face is setting a good relationship with these people. Tenants demand various things, from the most typical comfort requirements to more advanced demands like improved security of the property and frequent audit. Over time, tenants want to be able to utilise the space more efficiently via creative floor plans. Meeting all of these demands is not always easy and a successful property manager needs to know how to best address them. 
  
  
• Staffing – property management companies always have to be on the lookout to find and train customer-oriented staff. There is training required, as well as securing competitive wages for these people. After all, a company is only as good as the people working for it and providing its service to clients. Some other staffing challenges occur when it comes to outsourcing some services, like janitorial work and handyman services. 
  
  

These are most of the common challenges that property management companies nowadays face. They need to stay on top of these challenges because finding efficient ways to overcome and stay ahead is what separates the good property management companies from the bad. 

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