Property managers do a lot more than you might think
You have a residential property and as the home owner you are looking for someone to deal with your first time tenants and “collect the rent.” For most people that is what they assume the role entails. However, that is only one small aspect of what a residential property manager does, it’s only the dusting on a multi-layered cake.
Let’s unpack the Top 10 elements of a Residential Property Managers scope of work so you can make an informed decision around choosing the best bet for your needs. You’re looking for a service that will ultimately minimize your outlay and expenses while maximizing the profit on your property. The stress of daily involvement and maintenance of a property can be handed over to a professional so you can save time and can get on with your life. A Colorado Springs residential property management company can oversee any property from family homes to apartment complexes. They are not involved with commercial properties but focus solely on residential concerns.
1. Property Evaluation and Marketing
Your residential property manager will arrive at your property, take detailed notes on the structure - including photographs of the interior and exterior. They will then offer their expert recommendations on what specific improvements you could make to garner the highest monthly rental. The residential property manager will also do research in the area on rental rates to be able to determine your optimal rental amount for your property. They will advise you on allowing certain policies, like accepting pets, and the impact that could have in the long term.
Once the repairs and renovations have been executed the residential property manager will create adverts for your property for use on websites, free listings, print publications, fliers and signs. They will meet potential tenants and show them the property and give them rental applications that are legally compliant with fair housing laws.
2. Selecting the Ideal Tenant
The property manager has now received a number of applications and begins the process of performing background checks on the potential tenants. They are able to grade each applicant based on a set of pre-determined criteria. A selection is made and they will inform the unsuccessful applicants.
3. Overseeing Tenant Occupancy
So now the ideal tenant has been selected, they sign the leasing agreement and the date of moving in is confirmed. The residential property manager will spend time with the tenant to ensure they have understood every guideline. A detailed inspection of the property will be done with the tenant and they will sign a report to verify the condition of the property at move-in. The first months rent and security deposit will be collected at this time.
4. Monthly Rent Collection
The residential property manager will receive the rent from the tenant and will hunt down any late payments, enforcing late fees. It is their job to send out pay or quit notices timelessly.
5. Handling Tenant Evictions
Your residential property manager will handle all of the necessary paperwork to initiate an unlawful detainer action and represent you in court. They will coordinate with law enforcement to remove tenants and their possessions from your property in the event of an eviction.
6. Offer Legal Assistance
Your property manager is able to abide by state and federal legislation that applies to renting properties. They will be able to offer you advice in the case of a legal dispute and refer you to a qualified attorney if necessary.
7. Conduct Inspections
You will receive periodic inspection reports from your residential property manager on the condition of your property based on inspections they have carried out. These scheduled visits are to ascertain any repairs needed or if there are any code or lease violations.
8. Financial Services
Your designated residential property management company is able to make mortgage, HOA dues, insurance payments on your behalf. They will keep detailed historical and expense records. You will receive an annual report structured for tax purposes which includes a 1099 form. They can advise you on the tax deductions related to your rental property. Every month you will be provided with an easy to read monthly cash flow statement.
9. Maintaining your Property
If your property requires repairs or maintenance your Colorado property manager will provide the crew chosen from a network of contractors that are licensed, bonded, fully insured and who have been vetted for good pricing and great work. They are able to maintain your outdoor areas - landscaping, swimming pool maintenance, security, removing leaves and snow as well as removing trash. A 24-hour emergency hot line for repairs will ensure the tenant can have issues resolved quickly. If you wish to renovate to increase your rental, your residential property manager can act as a general contractor overseeing all of the desired work.
10. Managing End of Lease and Tenant Move Out
When a tenant is moving out, your residential property manager will prepare a report on the state of the property and list any damages that need fixing. This will be given to you and the tenant. The tenant will receive the security deposit less the cost of any damages. Your property management company will now clean your property, conduct repairs and re-key the locks. They will then put your property back on the market and the cycle begins again in the capable hands of your chosen Colorado Springs property manager.
Building a Relationship with your Colorado Springs Residential Property Management Company
Choosing a great property manager ensures that you will never have to deal with the 11PM call about a water heater that is flooding or other maintenance crisis on a public holiday. Your property is in safe hands and your real estate investment is secure. At the end of the day your property manager has ensured that your property has the perfect tenant, is kept in great condition, operates optimally and preserves its resale value. You are entrusting your investment with a property management company and it is imperative that you make an informed decision on the team that will deliver on every aspect of the role. Building an ongoing relationship with Colorado Springs residential property managers who are friendly, knowledgeable, professional and ethical is the only way to go. You want the whole cake not just a sprinkling of powered sugar!