What Does a Property Management Company Do?

Managing rental properties involves a wide range of tasks, from marketing vacancies to handling tenant disputes. For many landlords, especially those managing multiple properties or living far from their investments, the workload can become overwhelming. This is where a property management company or software comes in, taking over the day-to-day responsibilities that ensure a property runs smoothly and profitably.

A property management company typically handles everything from tenant acquisition to rent collection and maintenance coordination. These professionals act as the point of contact for tenants, handle emergencies, and ensure legal compliance. By taking on these critical roles, property management companies allow landlords to focus on the big picture, such as growing their portfolio or enjoying more free time.

Hiring a property management company can also be a strategic financial move. With their market expertise, they help optimize rental rates, reduce vacancies, and increase tenant satisfaction, which all contribute to long-term property value. Whether you're a first-time landlord or a seasoned property owner, understanding what a property management company does can help you decide if outsourcing is the right choice for your rental business.

Tenant Acquisition and Screening

One of the primary responsibilities of a property management company is attracting and vetting potential tenants. Finding the right tenants is crucial to ensuring steady rental income and minimizing issues during a tenancy. Property managers handle every step of the process, from marketing vacancies to screening applicants.

Key tasks involved in tenant acquisition and screening include:

• Marketing Vacant Properties: Property management companies use various platforms such as rental listing sites, social media, and local advertising to market your property. They ensure your property gets maximum visibility to attract qualified tenants.
• Tenant Screening: Once applications start rolling in, property managers thoroughly screen applicants by conducting background checks, credit checks, and income verification. They also verify employment and previous rental history to assess reliability.
• Lease Agreement Preparation: Property managers handle the creation of legally compliant lease agreements. These contracts outline the terms of the rental arrangement, protecting both the tenant and landlord.
• Property Showings: Property managers coordinate and conduct property tours for prospective tenants, saving landlords time and ensuring professional showings.

By managing these critical aspects, a property management company helps ensure your rental property is occupied by qualified, reliable tenants, reducing the risk of costly tenant turnover or evictions.

Using a property management software like Hemlane to streamline these processes gives you an upper hand. Hemlane can advertise your listing across 15+ listing websites including Zillow, Apartments.com, and Trulia. You can create AI-powered listing descriptions and automatically send texts and emails with next steps to interested tenants. Learn more about Hemlane’s rental property advertising here.

Hemlane thoroughly screens tenants, helping prevent costly expenses associated with bad tenants with income verification as well as credit, criminal, and eviction reports. From there, you can manage your applicants with applicant tracking, where Hemlane can schedule showings and send automatic follow ups with interested applicants.

Rent Collection and Financial Management

Ensuring consistent cash flow is a top priority for property owners, and property management companies play a vital role in making sure rent is collected on time and efficiently managed. Rent collection involves more than simply receiving payments; it also includes enforcing rent policies and handling any issues that may arise, such as late payments or unpaid rent.

Key responsibilities in rent collection and financial management include:

• Rent Collection: Property management companies ensure timely rent collection, enforcing lease agreements and charging late fees when necessary. They offer tenants multiple payment methods, such as online transfers, which reduce delays and make the process more convenient.
• Financial Reporting: Managers provide detailed financial reports to property owners, outlining income, expenses, and profit margins. These reports help landlords track their property's financial health and simplify tax preparation.
• Security Deposit Management: Property managers handle the collection and return of security deposits in accordance with state laws, ensuring everything is properly documented and returned to tenants when applicable.
• Expense Management: They also manage any property-related expenses, such as maintenance costs, insurance premiums, and property taxes, ensuring all expenses are paid on time.

By outsourcing rent collection and financial management, property owners can have peace of mind knowing that their rental income and expenses are being handled professionally, allowing them to focus on other aspects of property investment.

One of the most effective ways of managing rental property finances is by using Hemlane’s extensive suite of tools, from online rent collection to accounting. For property owners who are looking to save more money, Hemlane offers a free version as well that still allows landlords to market their property, screen prospective tenants, and manage finances. Learn more here!

Property Maintenance and Repairs

Property maintenance is one of the most time-consuming aspects of managing rental properties. Property management companies take this responsibility off the landlord’s plate by handling both routine maintenance and unexpected repairs. They act as the point of contact for tenants, ensuring that any issues are addressed quickly and professionally, keeping your property in good condition and your tenants satisfied.

Common property maintenance and repair tasks include:

• Routine Inspections: Regular property inspections help identify potential issues before they become costly repairs. Property managers schedule and conduct these inspections to ensure everything is running smoothly.
• Maintenance Coordination: Property managers handle ongoing maintenance tasks, such as landscaping, cleaning, and HVAC servicing. They coordinate with trusted contractors and vendors to ensure these tasks are completed on time.
• Repair Requests: Tenants can submit repair requests directly to the property manager, who will then coordinate the necessary repairs. This includes everything from small fixes like leaky faucets to more significant issues like electrical problems.
• Emergency Repairs: Property management companies often provide 24/7 support to handle emergency repairs, ensuring that urgent issues like plumbing leaks or electrical outages are resolved quickly.

With a property management company or software handling these responsibilities, landlords can rest easy knowing that their property is well-maintained and tenant satisfaction remains high. Hemlane offers property maintenance, as well as property repair coordination services.

Tenant Management

Property management companies take on the responsibility of tenant communication and relationship management. Acting as the go-between for landlords and tenants, they handle all tenant-related concerns, ensuring smooth communication and preventing disputes. This service is especially valuable for landlords who live far from their properties or simply don’t want to deal with the daily interactions that come with tenant management.

Key responsibilities in tenant management include:

• Point of Contact: Property managers serve as the primary point of contact for tenants, fielding questions, handling maintenance requests, and resolving complaints. This creates a buffer between landlords and tenants, allowing for more professional and efficient communication.
• Lease Enforcement: Managers ensure that tenants adhere to the terms of the lease, from rent payments to property usage rules. They take action when lease violations occur, such as unauthorized occupants or misuse of the property.
• Conflict Resolution: If disputes arise, such as disagreements over maintenance responsibilities or lease terms, property managers step in to mediate and resolve the issue, keeping relations between landlords and tenants cordial.
• Eviction Handling: When necessary, property managers handle the legal aspects of evictions, ensuring the process follows all local laws and is completed efficiently and legally.

With a property management company handling tenant management, landlords can maintain a more hands-off approach while ensuring their property is being properly cared for and tenants are happy.

A property management software can handle these important factors of tenant management as well. Hemlane offers lease management as well as Eviction+, a complete solution to help your tenants pay rent on time and safeguard your property from eviction risk. 

Legal Compliance and Risk Management

A property management company ensures that all aspects of property management comply with local, state, and federal regulations. Navigating these legal requirements can be complex, but professional property managers are well-versed in landlord-tenant laws and stay up-to-date with changes that could impact rental properties. This reduces the risk of legal issues for property owners and ensures that their operations are fully compliant.

A property management company’s legal responsibilities include:

1. Knowledge of Local Laws: Property managers stay informed on local regulations, including rent control, tenant rights, and safety standards. This ensures that all actions are legally compliant, protecting the property owner from legal disputes.
2. Lease Preparation and Enforcement: Property managers draft legally compliant leases that cover all necessary terms, including rent collection, maintenance responsibilities, and tenant rights. They also enforce the terms of these leases, ensuring tenants meet their legal obligations.
3. Handling Evictions: If a tenant fails to comply with the lease terms or pay rent, the property manager handles the eviction process, ensuring it is carried out legally to avoid fines or delays.
4. Insurance and Liability Management: Property managers ensure that the property is adequately insured and assist in managing any claims that may arise, helping to mitigate risk and reduce liability for the property owner.

By managing these legal aspects, property management companies and software products protect property owners from potential legal disputes and ensure that all operations are fully compliant with relevant laws.

Vendor and Contractor Management

A property management company acts as a liaison between property owners and the contractors and vendors needed to maintain the property. Whether it’s coordinating routine maintenance or managing large-scale renovations, property managers have established relationships with trusted vendors, ensuring that repairs are completed efficiently and at competitive rates.

Key tasks in vendor and contractor management include:

• Hiring Contractors: Property management companies handle hiring and scheduling contractors for repairs, maintenance, and improvements. This includes everything from routine cleaning services to larger projects like roofing or plumbing.
• Managing Vendor Relationships: Property managers maintain strong relationships with trusted vendors, often securing better pricing for property services. They ensure the quality of work and negotiate rates that help reduce costs for property owners.
• Work Order Management: Property managers oversee the entire process, from requesting quotes to confirming job completion and paying invoices, ensuring transparency and quality control.
• Emergency Vendor Coordination: When urgent repairs are needed, property management companies leverage their vendor network to respond quickly and efficiently, minimizing downtime and property damage.

By managing vendors and contractors, property management companies streamline property maintenance and improvements, ensuring cost-effective and timely services for property owners.

Financial Growth and Property Value Optimization

A property management company doesn’t just maintain your property—they also focus on increasing its value and maximizing your financial returns. With their knowledge of the rental market and experience in property management, they can help landlords make strategic decisions that improve the property's profitability and overall value.

How property management companies enhance financial growth:

• Market Analysis: Property managers regularly analyze local market trends to set competitive rental rates, ensuring you’re charging the optimal rent for your property while minimizing vacancies.
• Property Improvements: Managers often recommend property upgrades and improvements that can boost rental income and increase the property’s market value. This could include renovations, landscaping improvements, or energy-efficient upgrades.
• Vacancy Reduction Strategies: By effectively marketing your property and streamlining tenant screening and placement processes, property management companies reduce tenant turnover and keep your units occupied, minimizing income loss from vacancies.

With a property management company’s expertise, property owners can feel confident that their investment is being optimized for long-term growth and profitability.

Conclusion

A property management company or software can provide a range of valuable services that can save property owners time, reduce stress, and improve profitability. From tenant screening and rent collection to handling legal matters and maintenance coordination, property management companies take over the day-to-day responsibilities of managing a rental property, allowing landlords to focus on growing their investment portfolios.

By leveraging their market expertise, legal knowledge, and established vendor networks, property managers can help increase rental income, reduce vacancy rates, and ensure the property complies with local regulations. Whether you’re a new landlord or an experienced property owner looking to scale your investments, hiring a property management company can be a strategic decision that drives long-term success.

Consider Hemlane for Your Property Management Needs

Whether you’re looking to outsource property management or handle it yourself with greater efficiency, Hemlane offers a comprehensive solution that combines the benefits of professional property management with the flexibility of software. With tools for tenant screening, rent collection, property maintenance, and financials, Hemlane helps you manage your properties more effectively while saving time and reducing costs.

Hemlane’s platform offers features like AI-powered rental listings, 24/7 repair coordination, and a free plan that allows you to get started at no cost. For landlords looking to take control of their property management processes without sacrificing quality, Hemlane is the perfect choice.

Ready to simplify your property management? Explore Hemlane’s pricing options and find the plan that suits your needs!

Frequently Asked Questions

What is the function of property management?

The primary function of property management is to oversee the day-to-day operations of rental properties. This includes tasks such as tenant acquisition and screening, rent collection, property maintenance, and handling legal matters. Property management companies ensure that the property is well-maintained, tenants are satisfied, and the owner’s financial interests are protected.

What is the biggest responsibility for property management?

One of the biggest responsibilities of property management is ensuring consistent rent collection. This includes enforcing rent payment schedules, applying late fees when necessary, and managing tenant interactions regarding financial matters. Rent collection is critical because it directly impacts the landlord’s cash flow and overall financial success.

What is one of the most important functions of a property manager?

An essential function of a property manager is maintaining tenant relations. This includes being the point of contact for tenants, resolving disputes, coordinating repairs, and ensuring lease terms are adhered to. Good tenant management helps reduce turnover, increase tenant satisfaction, and maintain a stable income for the property owner.

How much does a property management company charge?

Property management companies typically charge 8-12% of the monthly rent as a management fee. There may also be additional fees, such as leasing fees (50-100% of one month’s rent), maintenance markups, and eviction fees. It’s important to review the fee structure of any property management company before hiring them to ensure it aligns with your budget.

Do property management companies handle evictions?

Yes, most property management companies handle the eviction process on behalf of landlords. This includes filing legal notices, representing the landlord in court if necessary, and coordinating the removal of tenants. Eviction services are typically offered as part of the management package, although additional fees may apply.

Can I still be involved in decision-making if I hire a property management company?

Yes, property owners can remain as involved as they wish. Many property management companies offer flexible services where landlords can choose the level of involvement they want. While the property manager handles day-to-day tasks, owners can still make key decisions, such as approving repairs or selecting tenants.

What types of properties do management companies oversee?

Property management companies typically manage a variety of properties, including single-family homes, multi-family units, apartment complexes, and commercial properties. They adjust their services depending on the type and scale of the property, ensuring that both residential and commercial properties are managed effectively.