NEWS

When it comes to managing rental properties, property management companies play a pivotal role in handling various responsibilities. However, it’s equally important to understand what functions are not performed by a property management company. This knowledge can help property owners and tenants alike make informed decisions and ensure the smooth running of rental properties.

The Scope of Property Management

Before delving into what property management companies do not perform, let’s briefly review their primary responsibilities:

Tenant Screening and Placement

Property management companies excel in finding suitable tenants, but they do not make the final decision regarding tenant selection. Property owners have the ultimate say in approving or rejecting potential tenants.

Rent Collection and Financial Management

Property managers are responsible for collecting rent, but they do not make financial decisions on behalf of property owners. Owners retain control over their property’s financial matters.

Property Maintenance and Repairs

Property management companies oversee maintenance and repairs, but major decisions or renovations may require owner approval.

Lease Agreement Management

Property managers handle lease agreements but do not have the authority to alter them without owner consent.

What Functions Are Not Performed by a Property Management Company?

Legal Representation

Property management companies are not licensed to provide legal advice or represent property owners in court. If legal issues arise, property owners should seek legal counsel to protect their interests.

Insurance Decisions

Property owners are responsible for making decisions related to property insurance. Property management companies may provide information, but the final choice rests with the owner.

Major Renovations

Significant property renovations or alterations typically require property owner approval. Property managers can coordinate such projects but cannot make decisions without owner consent.

Property Purchase Decisions

Property management companies are not involved in the purchase of rental properties. Property owners must conduct their own research and decision-making when acquiring new properties.

Utility Bill Payment

Property managers handle rent collection but do not manage utility bill payments. Tenants are typically responsible for their utility bills.

Personal Belongings Storage

Property management companies do not provide storage solutions for tenants’ personal belongings. Tenants must arrange their storage options.

Property Owner’s Personal Finances

Property managers manage property-related finances, but they do not handle the property owner’s personal financial matters.

Taxation Decisions

Property owners are responsible for making decisions regarding property-related taxes. Property management companies can provide information, but the owner retains control.

Frequently Asked Questions (FAQs)

Do property management companies handle evictions?

Property management companies can initiate eviction proceedings, but they do not decide the outcome. Courts and legal authorities make eviction decisions.

Can property managers negotiate lease terms?

Property managers can discuss lease terms with tenants but cannot make changes without property owner approval.

Are property management companies responsible for property upgrades?

Property managers can suggest property upgrades, but major decisions require property owner consent.

Do property managers decide rental rates?

Property management companies can provide rental rate recommendations, but the property owner ultimately sets the rental rates.

Can property management companies handle security deposits?

Yes, property management companies often handle security deposits and their proper accounting.

Do property managers handle property inspections? Property managers conduct regular property inspections to assess maintenance needs and tenant compliance