What Does a Property Management Company Do?

Owning a rental is part investment and part job. Someone has to find tenants, collect rent, answer late-night calls about a broken water heater and keep the house in good shape. A property management company takes on that work on the owner's behalf. What exactly that includes depends on the agreement, so this guide describes the usual responsibilities and the questions worth asking.

Marketing and finding tenants

When a home is vacant, a manager prepares it to be shown, writes the listing, takes photographs, answers enquiries and arranges viewings. The aim is to reach suitable applicants quickly without the owner having to field every call.

Screening applicants

Managers typically collect applications and review things like identity, income, rental history and references. Screening should follow a consistent process applied the same way to every applicant, and it must comply with fair housing rules. Owners should ask a manager to explain their criteria, and should check current federal and Mississippi requirements or consult an attorney if they have questions.

Leases and move-in

• Preparing the lease and explaining its terms to the tenant.
• Collecting the deposit and first payment as the agreement requires.
• Recording the condition of the home at move-in, ideally with photographs.
• Handing over keys and explaining how to pay rent and report repairs.

Rent collection and records

A manager sets up how rent is paid, tracks what has been received, follows up when a payment is late and passes funds on to the owner according to the agreement. Good records matter: owners should expect clear statements showing money in, money out and what it was for, which also makes tax time easier.

Maintenance and repairs

This is where a manager is often most visible. Tenants report problems, and the manager decides how urgent they are, arranges a contractor and follows the job through. Many agreements set a spending limit above which the owner must approve the work, except in emergencies. It is worth agreeing that limit up front.

• Emergency repairs such as burst pipes, no cooling in extreme heat or storm damage.
• Routine repairs such as leaking taps, broken locks and appliance faults.
• Preventive upkeep such as service visits for air conditioning and gutter cleaning.
• Turnover work between tenants: cleaning, paint, small repairs.

Inspections

Regular inspections catch small problems before they become expensive ones, and they give the owner a picture of how the house is being cared for. A manager typically schedules them, gives tenants proper notice, records findings and follows up on anything that needs attention. Our guide on inspection frequency goes into this in more detail.

Communication with tenants and owners

Tenants need a clear way to reach someone, and owners need to hear what is going on without chasing for it. A manager acts as the point of contact between the two, which can also keep the relationship professional when something difficult comes up.

Lease renewals and move-out

Near the end of a lease a manager can discuss renewal with the tenant, or begin planning for the next occupant. At move-out they inspect the home, compare it with the move-in record and handle the deposit in line with the lease and applicable law.

Questions to ask before you sign an agreement

1. What services are included, and what costs extra?
2. How are fees calculated, and when are they charged?
3. What is the repair approval limit?
4. How and when will I receive statements and funds?
5. How are tenants screened?
6. How often are homes inspected, and will I see the results?
7. How do I end the agreement if it is not working for me?

Is it right for you?

Management can make sense if you live far from the property, own several houses, or simply do not want the interruptions. If you enjoy hands-on ownership and live nearby, you may prefer to do some of it yourself. Either way, understand exactly who is responsible for what, and get it in writing. For questions about your obligations as a landlord, check current Mississippi requirements or consult an attorney.