Property managers help landlords manage the often stressful or time-consuming responsibilities that come with owning one or several rental properties. Some property management companies are small — just one person — and others are large corporations. While pricing and services can vary based on the company you hire, many property managers will handle some or all of these duties: 

1. Determine the rent price

A property manager has local real estate knowledge that will help you set a competitive monthly rent price while maximizing your return on investment (ROI). Their process for determining how much to charge for rent may include:

• Recommending improvements or repairs that will allow for a higher rent price
• Gathering data on comparable rental prices in the area
• Researching and comparing recently rented properties
• Working with you to determine the optimal rent price
• Setting reasonable rent increases based on the market

2. Market the rental property

Property managers are skilled at rental marketing, which means they’ll likely be able to fill vacancies sooner than if you tried marketing the property yourself. They’ll handle these tasks:

• Writing rental ads
• Taking high-quality photos
• Listing your property
• Hosting open houses
• Fielding questions from interested renters

3. Screen and select tenants

Experienced property managers see hundreds (or thousands) of applications, so their trained eyes are more likely to notice potential red flags when reviewing an applicant’s paperwork. They’re able to quickly spot good tenant qualities, such as paying rent on time, taking care of the property and more. The screening process includes:

• Providing a prospective tenant with a rental application that’s legally compliant
• Performing a background check to verify the applicant’s identity and rental history
• Running a credit report to verify income, credit history and any past bankruptcies
• Choosing a reliable tenant based on equal opportunity housing
• Collecting any necessary security deposits or pet fees

4. Manage tenants

Whether you need help managing one or 20 tenants, a property manager will handle all aspects of the landlord-tenant relationship. They’re responsive and available 24/7 to:

• Answer emergency maintenance requests
• Resolve conflicts or concerns
• Collect monthly rent payments

Zillow Rental Manager offers an online property management tool to easily list your rental, screen applicants, manage tenants and collect rent — all in one place.

5. Handle repairs and routine maintenance

Rental properties require routine maintenance and sometimes emergency repairs. A property management company will have a network of licensed, bonded and insured contractors and vendors — maybe even an in-house maintenance staff who can respond promptly to maintenance issues. Some property managers may charge a percentage of the repair costs as compensation for the time they spend arranging and completing the maintenance or repair process. Be sure to ask what additional fees to expect when you’re interviewing a property manager. A property manager will:

• Establish a preventative maintenance policy to identify and deal with repairs
• Perform periodic inspections for damage, safety hazards and code violations
• Maintain outdoor areas (landscaping, snow removal, etc.)
• Send you regular reports on the condition of your rental

6. Create a legally binding lease agreement

A lease agreement sets rules and expectations for living in the rental. A property manager may create the agreement or have a legally compliant lease agreement drafted by a professional. A proper lease agreement will:

• Comply with local, state and federal regulations
• Use proper terminology to avoid potential lawsuits

7. Provide accounting services

Bookkeeping can be a time-intensive, confusing and tedious process, but it’s crucial to making sure you’re properly filing taxes and making the most of your investment. A property manager will take care of:

• Documenting expenses with receipts and invoices
• Maintaining records of paid invoices, lease agreements, inspections and related items
• Providing an annual report for tax purposes
• Advising you on available tax deductions

8. Advise on legal matters

Property managers understand landlord-tenant laws and fair housing laws, which can help you avoid potential lawsuits and save time, money and energy in the long run. Some of their legal services include, if necessary:

• Issuing late payment and eviction notices
• Signing and terminating lease agreements
• Coordinating with law enforcement to remove a tenant and their possessions
• Instructing you on how to handle legal disputes and litigations
• Referring you to a qualified attorney

9. Inspect the property before move-in and move-out

During the move-in and move-out phases, a property manager will perform a detailed inspection with the tenant and have them sign a report to verify the rental’s condition. Upon move-out, the property manager will also:

• Provide the tenant with a copy of the report and the estimated damage costs
• Return the balance of the security deposit
• Clean the property and make any needed repairs
• Rekey the locks

For more articles, tips and trends about property management, property maintenance and being a landlord, visit our Rental Resource Center.