Not all landlords are created equal. Some simply collect a check while some make sure their tenants’ homes are well-maintained and provide the necessary resources to do so. Others may hire a block management company or choose to do it themselves for some or all of their properties.
Regardless of whether you’re a landlord or a tenant looking to rent a property this article will provide you with the major differences between a landlord vs a block property manager.
Landlord vs a Property Manager: Similarities
A landlord and property manager are similar in that they both manage properties. A person who owns rental property is a landlord. The term property manager generally refers to someone who manages the affairs of many landlords, not just one. Property management companies deal with their clients in an advisory capacity, keeping them informed about rent collection, repairs and maintenance and other issues that arise in a rental property.
Both landlords and property managers work with clients, but at different levels of involvement. A landlord is an owner who hires a manager to handle the day-to-day affairs of his or her property. Property managers represent several owners, while working closely with the tenants within each individual block.
Who is a Property Manager For?
A property manager can be a useful resource for a landlord with a large apartment block and numerous tenants. Property managers provide landlords with lower stress levels and higher profit margins by taking care of maintenance and repairs, leasing and other issues that may arise. Landlords also save time when delegating responsibilities to their property managers because they are experts in the field and ensure everything runs smoothly.
A property manager can also be beneficial to tenants. Tenants will receive their rental payments on time and landlords are less likely to raise rent or evict a tenant if a property manager is present. If repairs need to be made, they can take place quickly since there is no lag time between the request and the completion of the task.
Property managers are usually on call at all hours of the day, so tenants have quick access to support in the event of an emergency. Property managers are paid by landlords and collections of rent is more often performed without fail.
You Might Like: The 7 Key Skills Every Property Manager Needs
Key Differences Between Landlords and Property Managers
Rights of a Landlord vs a Property Manager
The basic and most crucial differences between a landlord and a property manager is that the landlord retains full control over his or her rental properties. A landlord ultimately has jurisdiction over his or her rentals and can make decisions regarding repairs, leasing and other specific requirements. A property manager works for several landlords at one time, but each specific client holds no power in regard to his or her own rental property.
Clients of a landlord have no say in the leasing process, but they still retain control over their homes and hold a right to privacy within a rental unit. A tenant does not always communicate with a landlord before making changes to his or her home, such as painting walls or adding appliances. Tenants and landlords avoid conflict and confrontation by establishing a relationship in which both parties understand their rights and responsibilities.
Responsibilities of a Landlord vs a Property Manager
The responsibilities of a landlord are to make decisions regarding the rental property. This can include repairs, leasing and other specific requirements. A landlord is responsible for making sure that his or her property meets local health and safety codes, regulations and ordinances. Landlords also promote their properties by using listings in newspapers, websites and books etc. Additionally, landlords need to screen potential tenants and should collect a security deposit from each new tenant at the time of leasing.
When a landlord hires a property manager, their responsibilities reduce significantly. A property manager instead takes care of maintenance and repairs, leasing, renovations and evictions, amongst other things. The responsibilities of a property manager include:
- Advertising vacancies and promoting the rental properties
- Advertising listings in newspapers, websites and books
- Screening potential tenants to determine eligibility
- Collecting a security deposit from each new tenant at the time of leasing.
Property managers provide landlords with detailed reports about their rental properties usually once a month. Tenant negligence or problems should be reported immediately to ensure that a solution is reached within a timely manner.
A property manager is responsible for making sure that a rental is always available and lease agreements are upheld. In the event of nonpayment, eviction proceedings can be initiated by a property manager with or without involvement from the landlord. A property management company will send out notices to tenants about any changes regarding rent increases or other issues.
Related Reading: How To Make a Complaint About Your Property Management Company
Cost of a Landlord vs a Property Manager
A landlord can hire a property manager or act as his or her own, so the cost is completely dependent on the individual’s needs. Property managers offer various levels of service and may charge different fees depending on services required. Fees are usually calculated as a percentage of rental income collected each month. However, this fee varies greatly based on geographical location and the company.
Maintenance, screening tenants and leasing a property can be difficult tasks. For this reason, a landlord may choose to hire a property manager in order to save time and money. Tenants will need to pay rent on time each month. When timely rental payments are not received by a tenant, the process of eviction should begin immediately.
Property Ownership of a Landlord vs a Property Manager
A landlord enjoys the benefits of owning a rental property and having complete control over it. However, that power is held as long as they own the rental unit and fulfill all responsibilities associated with ownership.
A property manager holds no ownership in a home or land and has no say in its use or maintenance. A tenant who fails to pay rent on time will be evicted, but the manager cannot change or modify leases or rental agreements. The responsibilities of a property manager are to collect rent, manage repairs and perform other administrative duties as required by the landlord.
Professional Relationships Of a Landlord vs a Property Manager
A landlord and property manager must have a good relationship with each other and with tenants in order to ensure prompt rentals, timely payments and overall respect for both parties. Those who work with the management company should understand that their role is strictly administrative rather than managerial.
Managing rental properties and payments can be difficult without professional assistance. A property manager may be willing to negotiate payment options or make other arrangements for a tenant who encounters financial difficulties.
If relationships between a landlord and property manager become tense, the owner of the property may choose to terminate services and find another company with which to work. A landlord also may hire additional employees or handle tasks in-house when needed.
A good relationship between an owner of rental properties and their designated property manager is important for the smooth-running of a rental unit. A property manager can provide advice and assistance to a landlord when needed, but they lack the power to make decisions or changes on their own.
Renting Process With a Landlord vs a Property Manager
When a tenant is interested in renting a property, the landlord will need to provide information and sign paperwork regarding leasing and payment agreements. At this time, security deposits must be paid by the tenant and checks may be issued for any additional fees or payments for utilities.
A property manager is responsible for keeping up with all of the details of tenancy agreements. They are available to answer questions when needed, but are not involved in the actual renting process with tenants.
You Might Like: The Role of Freeholders, RMCs and Managing Agents in Block Management
Advantages and Disadvantages Of a Landlord vs a Property Manager
Owning rental property is rewarding, but it can also be time-consuming and costly. Those who need to devote time to other responsibilities may choose to hire a property manager in order to save money.
Landlords enjoy the benefits of owning the property, while managers are paid in return for their services. Property managers can ease some of the stress associated with rental management, but they do not have complete control over the property.
Property managers can be hired in order to save time and money, but they lack the power to make decisions or changes on their own. Landlords also must handle most maintenance and repairs, while a manager is responsible for collecting rent each month and managing other administrative tasks.
Looking For an Expert Property Management Company?
Scanlans Property Management is a full service property management company providing expert residential block management services to landlords and rental owners throughout the UK.
We are fully licensed and insured property managers who ensure that your investment properties receive the professional attention they deserve. For more information or to see how we can help you with our property management services contact us today!
Leave A Comment