What Is the Difference Between a Professional Property Management Company and a Landlord?
If you’re in the process of looking for the right property to rent, you may have heard the terms landlord and property management used nearly interchangeably. This can cause confusion and often leaves people wondering if property managers and landlords are the same thing or if they are different? The reality is that landlords and property managers are often two parts of the same puzzle. Typically, there is a property owner which may also be recognized as your landlord and if the landlord isn’t interested in managing the day-to-day tasks of running a rental business, he or she may outsource this job to a professional property management company. Thus, essentially the landlord or property owner maintains the final say over their property, but they take a hands-off approach and allow a property manager to take care of the day to day needs of tenants. Read on to learn more about the differences between a landlord and a property management company.
Landlord Vs. Property Management Company
There are many ways that a landlord single-handedly managing a rental business will differ from one who has turned over the reins to a property management company. Consider these below:
1. Experience:
A key difference between a landlord and a property manager is their level of experience. Landlords may have years of experience in managing their own rental properties, but not necessarily any formal training or education in the field of property management. Property managers, on the other hand, have undergone extensive training and often have years of experience in the field. This will typically translate into better customer service for tenants during the process of renting and residing in a rental property.
2. Cost:
One of the biggest differences between a landlord and a property manager is cost. Landlords are typically not paid for their services, while property managers charge fees for their services that vary depending on what you need them to do. A landlord may save money by handling all of the tasks that come with owning a rental property themselves, but they may end up expounding more time and frustration on these tasks by attempting to do it all themselves rather than hiring a professional. Thus, a property management company can take the stress off of the landlord and give it over to the professionals who are better equipped to handle tenant needs, so tenants remain satisfied with their living situation.
3. Communication:
Another major difference between a landlord and a property manager is how they communicate with their tenants. Simply put, a landlord may be less available to answer questions or address tenant concerns, since they often have other employment or commitments to attend to. Property management companies, on the other hand, have dedicated staff who are available to respond quickly when a tenant has an issue. Not to mention, landlords may utilize outdated methods of communication or force tenants to leave a message and wait days for a response, while a property management company is equipped to handle each concern efficiently. Property managers also tend to be more organized and structured in terms of their communication, which can make it easier for tenants to understand their rights and responsibilities. Ultimately, the use of technology and a trained team can ensure more reliable and efficient communication for tenants’ needs rather than one single person managing everything themselves.
4. Maintenance And Repairs:
A landlord typically handles all of the repairs and maintenance for their rental property. Basically, this means they are responsible for handling any repair issues that arise, such as plumbing, heating, or electrical problems. Property management companies, on the other hand, are in a better position to handle these types of issues since they have access to experienced technicians who can quickly and efficiently diagnose and repair any issue. In addition, property managers are better equipped to negotiate pricing with vendors, which can save the landlord money in the long run. Simply put, tenants will often receive faster responses to their repair needs when a property management team is at the helm rather than one single landlord that is stretched too thin.
5. Tenant Screening:
Another key difference between a landlord and a property manager is the tenant screening process. Landlords typically conduct all of their own tenant screenings, which typically involve a background check or credit check and may take a significant amount of time to conduct. Conversely, property management companies often have a more sophisticated screening process in place that can help to ensure that only qualified tenants are accepted into the rental unit. This can help speed up the application and acceptance process since a property management company is experienced in the best ways to screen and choose quality tenants without delay.
6. Property Knowledge:
A professional property manager has the knowledge and experience to know what needs to be done to maintain the safety of their rental properties. This includes making sure that all legal requirements are met, such as safety inspections, so tenant safety is always a top priority. Landlords may lack this expertise, which could lead to costly mistakes, a potential violation of local laws and regulations, or even result in harm to tenants. In addition, property managers are also able to leverage their knowledge to assist property owners in setting a fair rate for their units, that are in line with the local market, so tenants aren’t paying more than they should be.
7. Professionalism:
Landlords may not always behave in a professional manner when dealing with tenants, whereas property management companies are bound by strict codes of conduct and must adhere to industry standards. Property managers maintain a high level of professionalism at all times and handle tenant inquiries and complaints in an appropriate manner. They also have expertise in handling tenant disputes, evictions, and other legal matters that may arise, which can help to protect landlords from potential litigation and ensure that the rights of both parties are respected.
In the end, it is apparent that a landlord-owned and managed business will look far different than one managed by a professional property management company. While some people may prefer the more personal relationship that can be developed between a landlord and tenant, the advantages of renting where a property management company is at the helm are endless. For a smoother, more professional, and more efficient experience renting, choose rental properties that are well-managed by a property management company. So, the next time you are looking for the right rental property, check out what your local property management company has to offer for a better experience!
If you’re in the process of looking for the right property to rent, you may have heard the terms landlord and property management used nearly interchangeably. This can cause confusion and often leaves people wondering if property managers and landlords are the same thing or if they are different. The reality is that landlords and property managers are often two parts of the same puzzle. Typically, there is a property owner who may also be recognized as your landlord and if the landlord isn’t interested in managing the day-to-day tasks of running a rental business, he or she may outsource this job to a professional property management company. Thus, essentially the landlord or property owner maintains the final say over their property, but they take a hands-off approach and allow a property manager to take care of the day to day needs of tenants. Read on to learn more about the differences between a landlord and a property management company.
Landlord Vs. Property Management Company
There are many ways that a landlord single-handedly managing a rental business will differ from one who has turned over the reins to a property management company. Consider these below:
1. Experience:
A key difference between a landlord and a property manager is their level of experience. Landlords may have years of experience in managing their own rental properties, but not necessarily any formal training or education in the field of property management. Property managers, on the other hand, have undergone extensive training and often have years of experience in the field. This will typically translate into better customer service for tenants during the process of renting and residing in a rental property.
2. Cost:
One of the biggest differences between a landlord and a property manager is cost. Landlords are typically not paid for their services, while property managers charge fees for their services that vary depending on what you need them to do. A landlord may save money by handling all of the tasks that come with owning a rental property themselves, but they may end up expounding more time and frustration on these tasks by attempting to do it all themselves rather than hiring a professional. Thus, a property management company can take the stress off of the landlord and give it over to the professionals who are better equipped to handle tenant needs, so tenants remain satisfied with their living situation.
3. Communication:
Another major difference between a landlord and a property manager is how they communicate with their tenants. Simply put, a landlord may be less available to answer questions or address tenant concerns, since they often have other employment or commitments to attend to. Property management companies, on the other hand, have dedicated staff who are available to respond quickly when a tenant has an issue. Not to mention, landlords may utilize outdated methods of communication or force tenants to leave a message and wait days for a response, while a property management company is equipped to handle each concern efficiently. Property managers also tend to be more organized and structured in terms of their communication, which can make it easier for tenants to understand their rights and responsibilities. Ultimately, the use of technology and a trained team can ensure more reliable and efficient communication for tenants’ needs rather than one single person managing everything themselves.
4. Maintenance And Repairs:
A landlord typically handles all of the repairs and maintenance for their rental property. Basically, this means they are responsible for handling any repair issues that arise, such as plumbing, heating, or electrical problems. Property management companies, on the other hand, are in a better position to handle these types of issues since they have access to experienced technicians who can quickly and efficiently diagnose and repair any issue. In addition, property managers are better equipped to negotiate pricing with vendors, which can save the landlord money in the long run. Simply put, tenants will often receive faster responses to their repair needs when a property management team is at the helm rather than one single landlord who is stretched too thin.
5. Tenant Screening:
Another key difference between a landlord and a property manager is the tenant screening process. Landlords typically conduct all of their own tenant screenings, which typically involve a background check or credit check and may take a significant amount of time to conduct. Conversely, property management companies often have a more sophisticated screening process in place that can help to ensure that only qualified tenants are accepted into the rental unit. This can help speed up the application and acceptance process, since a property management company is experienced in the best ways to screen and choose quality tenants without delay.
6. Property Knowledge:
A professional property manager has the knowledge and experience to know what needs to be done to maintain the safety of their rental properties. This includes making sure that all legal requirements are met, such as safety inspections, so tenant safety is always a top priority. Landlords may lack this expertise, which could lead to costly mistakes, a potential violation of local laws and regulations, or even result in harm to tenants. In addition, property managers are also able to leverage their knowledge to assist property owners in setting a fair rate for their units, that are in line with the local market, so tenants aren’t paying more than they should be.
7. Professionalism:
Landlords may not always behave in a professional manner when dealing with tenants, whereas property management companies are bound by strict codes of conduct and must adhere to industry standards. Property managers maintain a high level of professionalism at all times and handle tenant inquiries and complaints in an appropriate manner. They also have expertise in handling tenant disputes, evictions, and other legal matters that may arise, which can help to protect landlords from potential litigation and ensure that the rights of both parties are respected.
In the end, it is apparent that a landlord-owned and managed business will look far different than one managed by a professional property management company. While some people may prefer the more personal relationship that can be developed between a landlord and tenant, the advantages of renting where a property management company is at the helm are endless. For a smoother, more professional, and more efficient experience renting, choose rental properties that are well-managed by a property management company. So, the next time you are looking for the right rental property, check out what your local property management company has to offer for a better experience!
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