Why You Should Care about the Main Differences Between a Property Manager and a Landlord.

Why You Should Care about the Main Differences Between a Property Manager and a Landlord.

If you’ve been searching for houses for rent, you may come across one that's rented out directly by the Landlord and another by the Property Manager. Is there a difference? 

The terms “landlord” and “property manager” can't be mixed up interchangeably. These are two different stakeholders within the rental property industry. However, the two will be the people to see when renting a property.

Let's define, and put a meaning to the two and tell you the roles played by the two stakeholders.

Who is a Landlord?

A landlord refers to the proprietor of a house, an apartment, or real estate that is rented or leased to a tenant. The tenant can be a business or an individual.  


Who is a Property Manager?

A property manager is a company hired by the property owners to run the management operations while ensuring property maintenance. 


Therefore, the fundamental difference between the landlord and the property manager lies in the ownership of the rental property. To that end, you now know that the landlord is the main investor when referring to the property for rent. The property management Company exists by the virtue of appointment by the landlord, who bestows the role of managing the property to the chosen company. 


Having mentioned the fundamental difference between the property owner and the property management company, let us quickly look at the roles played by the two key stakeholders within the rental property industry. 


Responsibilities of the Landlord

The landlord’s main responsibility is making sure the property for rent remain habitable, safe, and clean to rent.

Here is an overview of landlord's responsibilities:  
- Keeping up with property maintenance 
- Maintaining the common areas, including keeping up with repairs
- paying tax bills related to the property


Ideally, the landlord needs to spend a good amount of time in maintaining the property.  This might be a challenge especially if he or she has other activities, or works elsewhere. Different circumstances, the landlord may choose to employ a property management company to oversee the property management role. Thus, let us look at what the responsibilities of the property management company shall become under such circumstances:

- Advertising vacant rental units
Property Management Company is responsible for advertising rental properties whenever the tenants move out. Thus, a landlord counts on the property managers to ensure that the property does not run without a tenant. Ideally, the main responsibility of the property managers to the landlord is ensuring properties are occupied quickly to avoid losing any revenue due to vacant. 

- Tenant Screening 
All potential tenants should go through a thorough screening. Screening of tenants entails checking their background information and reviewing any previous evictions. In case a previous eviction, the property management company may reject the application for tenancy. This is  based on a substantial reason. 


-In charge of Tenants Move-in Process
The property management will be responsible for ensuring successful tenants move-in process. This entails gathering legally compliant lease drafting, detailed inspection, and ensuring agreement with the property owner. 

-Handling Property Maintenance, Repairs and Client complaints
Tenants are expected to channel any complaints through the property management company. It is the responsibility of the property manager to find the best way to handle the repair requests. However, the response to the tenants needs to be prompt, to maintain a good reputation. 


- Rent collection
The property managers will collect rent at the due date. The company is responsible for receiving the rent payments and tracking down the tenants who have not paid the rent. In case the tenants persistently do not pay rent after the due date, the management agency will send reminders to the tenants asking them to observe the rent due date. 

Now you are aware of some of the difference between a landlord, and the property manager and elaborated on some of the responsibilities of the two parties.