Commercial vs Residential Property Management - What’s our focus?
Residential and commercial property management are two different types of services that involve managing rental properties. Residential property management focuses on private homes, apartments, condominiums, and other dwellings for individual tenants. Commercial property management involves larger-scale buildings such as office parks or shopping centers with multiple tenants in a single facility. In this case, it requires additional services such as lease negotiation and enforcement of tenant regulations related to the business operations conducted within the building.
Here at Revolution, while we do manage a small portfolio of commercial units, our core focus is on residential property management, particularly for single-family homes and small (less than 100 units) multifamily buildings.
What Does a Residential Property Management Company Do?
Full-service property management for residential properties is a complicated business with a lot of moving pieces! Let's go over some of the biggest items that a residential property management company does to take care of their client's investments.
Advertising Properties for Rent
When it comes to residential property management, one of the most important tasks is listing a property for rent. This involves marketing and advertising the available rental units in order to find qualified tenants. This could include creating online listings on sites such as Zillow or Trulia, posting flyers and signs around town, or evenÂ holding an open house (although this is rare nowadays).
Showing Properties to Prospective Tenants
Showing rental properties to prospective tenants is an important part of the residential property management process. Property managers must be knowledgeable about the features and amenities of their units. This includes giving tours, answering questions, highlighting benefits, and providing information on rental policies such as pet policies. Residential property managers should also be prepared to adjust the target rent or make recommendations to clients on improving the property in order to get it rented in the most efficient time possible.
Screening Applications of Potential Tenants
Residential property managersÂ must be able to effectively assess applicants in order to identify and select those who are most likely to pay rent on time and take good care of the rental unit. This includes checking for criminal history, reviewing credit reports, verifying income sources, and performing background checks. Residential property managersÂ must also be up-to-date on federal and local landlord-tenant laws in order to ensure compliance with tenant screening regulations.
Moving Tenants Into Properties
It's important to ensure that tenants have a smooth transition and understand their responsibilities as renters when moving in. Residential property managersÂ must also be aware of any local laws or regulations regarding tenant move-in procedures, such as security deposits and rental agreements.
Residential property managers must be knowledgeable about the rental policies and procedures for collecting rent in order to ensure that their clients receive payment on time. Residential property managersÂ should also be aware of federal and local laws related to tenant-landlord relations, such as the Fair Housing Act and other tenant rights regulations. Residential property managersÂ can use a variety of methods for collecting rent, including online payments or automatic bank transfers, which help streamline the process while providing convenience to both landlords and tenants.
Enforcing the Lease
Residential property managers must be knowledgeable about the rental policies and procedures for enforcing the lease in order to protect their clients’ investments while also ensuring that tenants abide by the terms of the agreement. Residential property managers should be up-to-date on federal and local landlord-tenant laws, such as those related to tenant rights or eviction proceedings, in order to ensure compliance with all applicable regulations. Residential property managers can use a variety of methods for enforcing leases, including written notices or verbal warnings if necessary.
Evicting Tenants Who Do Not Pay the Rent or Who Break the Lease Rules
Evicting tenants is a last resort for residential property managers, but in some cases, it may be necessary. Residential property managers must familiarize themselves with the relevant laws and regulations regarding tenant eviction, such as the Fair Housing Act or local landlord-tenant laws. Residential property managers should also provide clear information to tenants about their rights and responsibilities under the lease agreement before any eviction proceedings begin. Additionally, residential property managers must take all necessary steps to ensure that evicting a tenant is done correctly according to applicable law.
Overseeing Repairs and Maintenance on Properties
Residential property management involves overseeing repairs and maintenance on rental properties in order to ensure that the property is kept up to standards. Residential property managers must be knowledgeable about local laws, regulations, and safety codes related to repair work done on rental properties. Residential property managers should also have a clear understanding of how to identify potential problems before they become serious issues as well as when and how repairs should be conducted. Residential property managers may need to coordinate with contractors or vendors for larger projects or oversee tenant-initiated repairs.
Providing Accounting Statements to Our Clients
Providing accurate and timely accounting statements to clients is a critical part of residential property management. Residential property managers must be knowledgeable about the various financial requirements associated with rental properties, such as taxes, insurance, and other costs. Property managers should provide, at a minimum, monthly and yearly statements, and it is highly preferable to have a property manager with an online portal for up-to-date info.
Help Clients Buy and Sell Rental Properties
Residential property management also involves helping clients buy and sell rental properties. Residential property managers must have a comprehensive understanding of the local real estate market in order to advise their clients on potential opportunities for investments. Residential property managers can also provide guidance regarding financing options that may be available for purchasing rental properties, as well as strategies for effectively managing investments over time.
Should I Hire a Residential Property Manager?
In short, the answer for almost every real estate investor is 'yes!' The only exception would be an investor who is able to work full-time in the management of their rental properties. Even then, it still takes time away from deal sourcing and closing, which can reduce your overall return. In general, almost every real estate investor should hire a residential property manager.
Ready to Hire a Residential Property Manager?
Please contact us at Revolution and we will be happy to assist! We manage properties all over the metro Atlanta area and have been doing so for 14 years. We know the market and the industry inside and out.