The process of managing and maintaining a property requires for there to be many responsibilities that can sometimes be delegated to different people. Two crucial positions in the world of property ownership are landlords and property managers. While both roles deal with rental properties, their responsibilities differ significantly. It’s also important to understand that there can be a landlord without a property manager but not the other way around.
As a tenant, it’s sometimes difficult to determine who you should call for a specific issue so we hope to narrow down the main issues that each party can deal with. We also want to properly define the terms “landlord” and “property manager” so you can better understand who owns and runs the property where you live, versus who takes care of the property and the tenants.
What is a Landlord?
The landlord of a property is the owner of the physical building. This means they have full ownership over the property and they choose to rent it out to tenants. As the owner, the main goal of a landlord includes maximizing the return on their investment.
Landlords may interact with tenants and deal with on-site issues, but they primarily perform “behind-the-scenes” duties when there is a property manager that can take care of the rest. Landlords managing multiple or commercial properties usually opt to hire property managers to help with their workload.
Main Landlord Responsibilities:
Major Financial Decisions: Any property finances that are considered to be a major decision, and could have an impact on the overall performance of a property, are usually delegated to the landlord.
Setting Rental Policies: Though property managers can eventually modify some rental policies on a case-by-case basis, the initial policies, lease terms, and other components are established by the landlord.
Legal Matters: Any legal issues that arise are taken directly to the landlord. This can be anything from an eviction, to property issues, and settling any disputes.
What is a Property Manager?
A property manager is a third party hired by the landlord to take on certain responsibilities of a given property. This person is usually part of a management group that works to oversee on-site and tenant-facing aspects of property ownership.
The building they manage is still owned by the landlord, but the manager is able to run point on most all day-to-day operations.
Property Manager Responsibilities:
Tenant Relations: Property managers are responsible for mainstream communication with tenants. They take care of all tenant complaints and maintenance issues. That being said, just because a tenant may have contacted the property manager, doesn’t mean the issue will be resolved straight away! Some issues might be initially brought to the manager by a tenant, but then the issue needs to be forwarded to the landlord which can take some time before it’s resolved.
Property Maintenance: All outdoor and interior maintenance like repairs, landscaping, etc. are determined by the PM. They are in charge of hiring and scheduling contractors within a reasonable time period.
Tenant Screening: Before agreeing to a rental agreement with new tenants, PMs must conduct tenant screenings. It’s a type of thorough background check and property managers collect all relevant information about prospective tenants.
As a tenant, it’s important to know who to contact with what kinds of questions, and the difference between your landlord and property manager. While both roles are essential to the rental property industry, landlords own the property and oversee back-end management, while property managers are hired professionals who handle on-site operations on behalf of the landlord.