A property manager oversees the day-to-day operations of rental properties on behalf of the landlord or owner. Whether it is a business, residential or commercial building, there may be multiple occupants and the role of the property management is to help with things like collecting rent, sorting out building maintenance and repairs and in some cases, disciplining and evicting bad tenants.
The roles of property managers includes:
- Selling vacant units
- Screening tenants
- Collecting rent from tenants
- Coordinating maintenance and repairs
- Enforcing lease agreements
- Handling tenant complaints or disputes.
- Evicting of tenants
- Ensuring compliance of local and state property laws
- Financial reports
- Supervising on-site staff, builders or maintenance workers
As a busy landlord with a big portfolio, you may be more interested in building and growing your property portfolio and getting the finance and completing the sales. Therefore, you might want to sub out the property manager role to someone to deal with the day-to-day running of it.
This could be someone that is hired on an hourly rate, contractual basis, part-time or full-time. You may insist on having multiple property managers for the same building or the same manager for multiple buildings.
What Kind Of Building is a Property Manager Suited For?
A property manager is ideal for a residential or commercial building with a lot of tenants and rooms, both occupied or vacant. This includes student properties, office spaces, flats and homes that are rented out, residential blocks and more. Others buildings might include those where the owner or landlord is not regularly there, such as AirBnBs, holiday rentals, chalets, villas and more.
A property manager may be excessive for a one-off individual property, but rather look after a portfolio or a bit residence or commercial building which requires ongoing maintenance and a desire to keep lots of tenants happy.
A big residential block would be a good candidate for block managers or property managers, with lots of maintenance usually required and a lot of tenants to stay on top of.
How Much Do Property Managers Charge?
Property management fees will vary based on location, with property managers in London likely to be a little pricier. It may also depend on the type of property and the services provided. No doubt that newer buildings may be less maintenance compared to a huge building which is old and needs a lot of ongoing work.
Typically, property managers charge between 8% and 12% of the monthly rental income for full-service management of residential properties. If a building is generating £10,000 a month in rent, the property management agency or individual, will likely charge £800-£1200 per month.
But this may depend on various factors. There may also be reduced rates for the more tenants they manage and the economies of the building.
Additional fees might include leasing fees (equal to half or a full month’s rent) for finding new tenants, maintenance markups or advertising expenses to find new tenants.
For vacation rentals or short-term rentals, the management fee might range between 20% and 30% due to more frequent turnovers and hands-on management.
Is It Worth Hiring a Property Manager?
Hiring a property manager is worth considering if you lack time, live far from the property, or are inexperienced in rental management. Or if you are a busy landlord who needs to focus on growing their portfolio, accessing bridge finance, talking to investors and you travel around a lot.
Property managers can save you time and stress, ensuring legal compliance and minimising tenant issues. However, their fees can significantly cut into your rental income.
For small properties or if you’re hands-on and nearby, managing it yourself may be more cost-effective.
On the other hand, for owners with multiple properties, complex rentals, or little experience, a property manager can add value by optimising occupancy, reducing tenant turnover, and ensuring efficient property operations.
The decision ultimately depends on your situation, priorities and the complexity of managing your property.
