SPECIFIC DUTIES OF THE PROPERTY MANAGER

SPECIFIC DUTIES OF THE PROPERTY MANAGER

Here are some of the specific duties a property manager must perform:

1. establish the rental schedule that will bring the highest yield consistent with good economics.

2. merchandise the space and collect the rent.

3. create and supervise maintenance schedules and repairs.

4. if applicable, insure independent contractor license status and insurance coverage.

5. set up payroll system for all employees.

6. develop a tenant/resident relations policy.

7. supervise employees and develop employee policies, including an Injury Prevention Plan.

8. maintain proper records and make regular reports to the owner.

9. qualify and investigate a prospective tenant’s credit.

10. prepare and execute leases.

11. obtain decorating specifications and secure estimates.

12. hire, instruct, and maintain satisfactory personnel to staff the building(s).

13. audit and pay bills.

14. advertise and publicize vacancies through selected media and broker lists.

15. recommend alterations and modernization as the market dictates.

16. inspect vacant space frequently.

17. keep abreast of the times and competitive market conditions.

18. obtain and pay insurance premiums and taxes.

19. be knowledgeable about and comply with applicable Federal, State and local laws.

Rent Schedule

In establishing the rental schedule, the property manager must make a thorough neighborhood analysis by doing
a market survey of rents for comparable buildings. Rent levels, generally, are established on the basis of
scarcity and comparability of values. The manager must know the building thoroughly, assess its values
objectively, then survey all of the “competition” buildings in whatever limits the manager sets for the
neighborhood. The manager must then analyze:

1. the character of the buildings and amenities of the neighborhood.

2. economic level, family size, and age groups.

3. trends in number of occupants per unit.

4. availability of transportation, recreation, shopping, churches, and schools.

5. impact of available on-site recreational facilities including parking spaces.

6. the breadth and growth of local industries.

7. population growth trends.

8. personal income range, financial capacity, and stability of income.

9. growth and expansion of the community.

10. condition of the housing market in terms of inventory on the market, sales price range, new construction,
and vacancy.

After a thorough analysis, the property manager will prepare a rent schedule that will bring the maximum
income obtainable, consistent with good economics.

Merchandising the Space

All of the activities relating to property management are useless unless the property manager knows how to
effectively merchandise the space available for rent. The most common method of merchandising rental
property today is to advertise it on the internet. Other methods include: business cards, newspaper ads, signs on
the property, radio and television advertising, brochures and fliers, billboard advertising, business contacts, and
tenant referrals.

When a prospective qualified tenant responds to advertising, the property manager must make every effort to
secure the tenant for the vacant property, as advertising can be very expensive along with lost opportunity costs
of vacant units. A sound property maintenance program is very important. Rental properties showing the wear
and tear of the previous occupants will discourage a prospective tenant.

Maintenance and Purchasing Operations

The property manager must establish and maintain sound policies for the maintenance of the building and
purchasing of supplies and services. However, if all of the building’s income is used for expenditures, leaving
the owner no profit, the dissatisfied owner will seek the services of another property manager.

It is the responsibility of the property manager to routinely inspect the building and know its current, as well as
deferred maintenance needs. The property manager should have access to skilled specialists for repair and
maintenance work, unless the resident manager is personally skilled to perform necessary repairs. In either case,
the property manager must correct the building’s repair/maintenance problems as soon as they are discovered. It
is less expensive to make repairs immediately than to delay action and allow the problem to worsen. Ongoing
preventive maintenance to reduce the need for large maintenance expenditures should be the goal of all
property managers. This approach makes good sense and, ultimately, provides more profit for the owner.

The property manager must also supervise all purchasing operations, with the emphasis on obtaining the best
value possible for the owner’s money.

Tenant Relationships

Tenants want to get the most they can for their rental dollar and feel safe in their surroundings. The property
manager must set policies which will give tenants the most benefits commensurate with a proper return to the
owner. Effort expended for tenant retention will result in more satisfied residents and increased profits for the
owner. Here, the manager has to use experience and courtesy as well as psychology.

Manager as Employer

The property manager employs almost all the people working on the premises and provides for their instruction
and supervision. The manager must know the “what, how and when” of each employee’s job.

The success or failure of the management operation often depends on the property manager’s ability to choose,
train, direct and retain personnel. An effective staff will keep vacancies and maintenance costs at a minimum,
thus contributing to the project’s profitability.

Vacancies

There are many reasons why a rental space might be unintentionally vacant: improper rent required; space not
ready to rent; resident manager not “selling” effectively; an inattentive manager; poor resident retention
program; unappealing facade or public areas; no traffic or lookers; and suffering a high vacancy factor in the
area.

Successful managers are continually alert to these factors and make appropriate adjustments in marketing
strategies and personnel where indicated.

Reports to Owner

The property manager must set up and maintain proper records, making regular reports to the owner that are
easily understandable and that cover all operations. It is also recommended that the property manager provide
not only a monthly accounting to the property owner, but also a detailed annual statement. By means of such
annual statements, the property manager can assess the fluctuations of income and expense and formulate future
rental, maintenance and employee policies.