When and How to Hire a Property Manager

At Eviction Group, A Professional Law Corporation, we often see many landlords struggling to balance their tenant issues along with other careers or family lives. Whatever the distraction may be, hiring a property manager could be the solution you’ve been looking for.

What do property managers do?

A property manager deals directly with prospects and current tenants, saving owner time and worry. They handle the day-to-day issues such as marketing your rentals, collecting rent, conducting maintenance and handling repairs, even pursuing evictions. Plus, a property management company is an independent contractor, so you don’t have to deal with the stresses of being an employer.

When is it a good idea to hire a property manager?

Consider these elements when determining if hiring a property manager would be good for your business:

  • You have a lot of rental units or properties.
  • You don’t live near your rental property.
  • You don’t have time or interest for hands-on management.
  • You can afford the employment costs. Management companies are independent contractors, so you don’t have to worry about paychecks, but they do cost around 5-10% of what you collect from rent revenue. Consider the costs when determining if a resident manager or a management company is better for you.
  • You have a lot of management tasks.
  • Your property is part of an affordable housing program. While landlords receive financial assistance for participating in affordable housing programs, they must comply with strict rules and standards. You may consider a property manager to help balance those standards.

How do I hire a property manager?

  1. Screen potential resident managers with several interviews, first on the phone, then face-to-face with stronger candidates. Get a full resume or application and check with their former supervisors (at least two) about their previous job responsibilities, their character and personality traits, strengths and weaknesses. Checking an applicants credit history is especially important because they are going to be handling money. You must get their consent before ordering a credit report.
  2. Prepare a written property manager agreement to ensure that all terms and conditions of employment are mutually acceptable. The agreement should cover the manager’s responsibilities, hours, pay and grounds for termination.
  3. Prepare a separate rental agreement–usually a month-to-month agreement that can be terminated by you or the manager at any time with, typically 30 days, written notice.
  4. Meet your legal standards as an employer, including compliance with wage and hour laws, paying Social Security and payroll taxes, among other employer responsibilities.


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