A property manager is just what it sounds like. They are responsible for overseeing the daily operations of rental properties. Property managers typically deal with all types of properties, including residential, multi-family, and commercial buildings. While this is usually a percentage of rent collected, “other forms of compensation may include a fixed fee per managed unit and, in some cases, property managers may also receive a monthly bonus or commission for meeting certain performance objectives,” says Boris Dorfman, fund manager at LBC Capital Income Fund, a private money lender for real estate investors based in Los Angeles.
Therefore, the goal is for property managers to have adequate time to ensure that each property gets the attention it needs. A property manager is a good idea when you feel overwhelmed managing your properties yourself or can't do it properly. Basically, when a person invests in one or more properties and doesn't want to take responsibility for rental tasks, they can hire a property manager. It's safe to say that property managers need to gain diverse skills and knowledge to successfully manage rental properties.
However, property managers must have a real estate license to display properties, collect rent, and process specific documents in states such as Virginia. No matter how many properties you own, if you don't want to manage daunting everyday tasks, you don't have to. Instead, property managers who are not real estate agents can use a broker to supervise their properties. For a residential property manager, financial management begins with analyzing and setting the correct rental rates, calculating costs, depreciation, and taxes, and determining realistic profit targets and a budget to achieve them.