Reviewed by Sep 30, 2020| Updated on
A property manager is a person or organization that is employed to supervise a real estate unit's day-to-day operations. Landowners and real estate developers usually employ property managers when they are not able to manage the assets themselves.
The cost involved in recruiting a property manager is tax-deductible against the property's income generated. Complex residences, shopping centres, and business offices are growing forms of commercial property managed by property managers.
Property managers provide a perfect option for owners who do not live in close proximity to their rental property or simply do not like dealing with guests, toilets, etc. There are several real estate investors, especially institutional real estate investors, who do not wish to be hands-on with the investment.
The duties of the property manager may include monitoring and organizing building repairs and work orders, performing light handy and cleaning work, addressing resident issues and grievances, advertising, displaying and leasing empty apartments, collecting and depositing rent, and periodically interacting with the property owner about the property's status.
The major advantage of hiring a property manager is that it removes the need for the owner to be in close proximity and actively manage the land. This allows an investor in real estate to concentrate on investing in quality assets rather than maintaining the portfolio of currently owned properties.
The drawback is that the standard of treatment and service provided to tenants, the main source of income, might not be as large as the landlord's level of personal investment work.
This cost problem is a feeling that real estate investors would need to overcome if they intend to scale up their holdings. Large property owners are dependent on property managers and typically work with a qualified property management firm instead of making any real efforts.