What Does a Property Management Company Do?

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Becoming a landlord is a fruitful endeavor because you can earn money now by renting your units out and earn money down the line as the value of the property increases. However, it can also become a full-time job if you try to tackle all of the day-to-day tasks of being a landlord yourself. That’s why many landlords choose to work with a property management company. But what does a property management company do, exactly? Keep reading to learn more about how a property manager can make your life as a landlord much easier.

Determine Rent Price

Determining the optimal rent price is key to getting the best return on your investment. If you price your rental unit too low, you may be selling yourself short. If it’s too high, you might not land any tenants or you’ll have long periods of vacancy, which will cost you in the end.

You might think determining the rent price is as simple as looking at nearby homes and what they charge for rent, but it’s not. There are many factors that can affect a home’s rent value, making properties in the same neighborhood vary in price.

Property management companies have a deep understanding of the local real estate market and what potential tenants are looking for in rental units. This allows them to accurately determine the rent price so you can get the biggest ROI.

Market Your Property

So, you have a beautiful property and the rent has been set. Now, how will you attract quality tenants to apply? Marketing your house or unit is essential in filling vacancies quickly. Without marketing, people who might be otherwise interested in renting your property won’t even know it exists.

A property management company will take professional photos of your property and market it on popular rental sites to attract potential tenants.

Property manager explaining what a property manager does

Screen Tenants

Getting people to apply to rent your unit is only the first step. The last thing you want is to rent your unit to people who won’t pay rent or will completely trash your property. That’s why tenants need to be screened by having background checks completed along with credit checks. By screening tenants, property managers can find the best applicants who will pay their rent on time and treat the property with care.

Finding reliable and responsible tenants can save you a ton of money down the line, so this step of the process should never be taken lightly.

Handle repairs and Maintenance

Taking care of repairs and daily maintenance might be the most time-consuming part of being a landlord. Every property will have its issues, some more than others, leading tenants to call and request repairs. Without a property management company, you’ll have to deal with all of these repairs on your own.

That means you’ll either fix them yourself or spend money on hiring a professional. Both options take up your valuable time and money. But if you’re working with a property management company, the tenants will call them directly to report any issues in the home. They have local professionals on-call to do the repairs right away.

Collect Rent

If you own multiple rental properties, collecting rent each month can become quite a headache. You have to worry about each tenant submitting rent on time and if they don’t, you have to reach out to them and request it.

This is something you probably don’t want to think about each and every month, which is why a property management company will do it for you.

Deal with Any Tenant Issues

What happens if a tenant doesn’t pay rent or is causing other issues in your unit? Well, if you have a property management company working with you, it’s not something you’ll need to worry about!

Property managers deal with any tenant issues including late rent or destruction of property. They will issue eviction notices and, if need be, take legal action. If a tenant needs to be evicted, it’ll fall on the property management company to quickly fill that vacancy with new tenants.

Regular Home Visits

It’s important to keep tabs on your rental units by performing seasonal home visits. But if you live far from your properties, this would be very difficult to do. That’s why a property management company will do it for you.

They will visit your properties and check to make sure the air filters are being changed, the HVAC system is working well, the appliances are in good shape, and the smoke and carbon monoxide detectors are working properly. They’ll also make sure the tenants are treating the property with care.

Allows You to Invest From Afar

If you want to invest in a property that is out of your city or state, a property management company is essential. While some of the tasks can be done from afar, things like maintenance and home visits require feet on the ground.

By using a property management company to handle the day-to-day, in-person tasks, you can earn a passive income off of your property from afar, allowing you to invest wherever you want to.

So, What Does a Property Management Company Do?

A property manager’s goal is to make your life easier when it comes to your investment properties. They allow you to invest in real estate without being hands-on with the day-to-day tasks of owning a rental property. When asking the question “what does a property management company do”, the answer can vary depending on who you’re working with, but the above tasks are typically done by a property manager.

Are you looking to work with a property management company for your rental units? We’re here to help! Contact us today to learn more about our services.

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Enhanced Reporting

Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

Owner Portal Reports
  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

Enhanced Rent Roll Report
  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

Unit Comparison Report
  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
  • This report enables you to quickly compare financial performance between your units at a glance without toggling between individual reports. 

Income Statement Month-Over-Month:

Income Statement by Month Report
  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

Owner Portal Documents
  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

Owner Portal Property Statement

You'll also find a month-over-month operating statement:

Month over Month Statement

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

Commincation Dashboard Screenshot
  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Owner Portal New Message Screenshot

Responses will show up in the conversation ticket:

Portal Conversation Response Screenshot
  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Owner Portal Comment

Each conversation will be logged in its entirety:

Portal Conversation Snapshot

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

Owner Ledger Dates
  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

Ledger Property Column
  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

Owner Ledger Description Column
  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

Owner Ledger Amount Column
  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

Owner Ledger Account Balance Column
  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

PW Portal Filters

View a snapshot of income and expenses on your dashboard:

PW Owner Dashboard View

See every transaction in real-time on your ledger:

Owner Portal Ledger View

Statements and forms will be posted to your documents library:

Owner Portal Document Library

View a suite of real-time financial reports:

Portal Reports View

See a running list of all bills, and drill down for more detail:

Owner Portal Bills View

Under Bill Details, you'll find dates/descriptions/amounts and more:

Portal Bill Details

You can also communicate with your Account Manager through the portal:

Owner Portal Communication Tools

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

Net Distribution

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.