So I am opening up my blog with a simple question. "What do landlords and property managers do?".
Frankly, the better question would be "What don't they do?". This saves us a TON of time in analyzing the roles of landlords and property managers.
To accept the role of landlord or property manager is to accept a far and wide gamut of responsibilities, hidden within an infinite number of sub-roles. Honestly, some days I fully believe that the word "landlord" must be an old native term for "man of many hats". For a landlord can and often does change "hats" ten times a day.
Of course when I use the term "hat", I am merely referring to a different role that can be assumed by the person in charge of managing any given property unit.
Sometimes this can be a stressful juggling act, as at any given time, a person who manages rental properties can be required to go from friend and confidant to robotic dictator at the drop of a...well...hat.
Let's explore some of the different...ummm..."hat's" that landlord and PM's routinely switch back and forth between.
Roles that a landlord can reasonably expect to assume any given point during their day:
Salesperson:
Someone has to show the vacant units, talk contracts, and seal deals...am I right? Heck, even once you have a quality tenant sign on the dotted line, this comes back around full circle at lease renewal time. Oh my, can't we catch a break!? A landlord and PM's job is never truly finished...
...As this is an unalienable truth of landlording, the list goes on...
Detective/Investigator:
From the moment we initially receive their rental application, we find ourselves digging for information about this prospective tenant. (One might even argue that the process of investigating a tenant actually begins at the point of first contact, I mean we have a lot of questions for them right out of the starting block...what area would you like to reside in, what is your price range, would an apartment or home better suit your family, etc...so the questions begin!) Thereafter, we find ourselves receiving something as subtle as a noise complaint phone call from a neighbor, that can send us on a full bore investigation. We must ensure that the alleged violation is actually occurring, right? So then our fact finding mission begins. We get statements from all involved, diligently noting the situation. Then of course we receive conflicting reports, so instead of haphazardly issuing a noise violation to our tenant, we must do further due diligence. This results in periodic property visits by ourselves and our colleagues, until we have cracked the case! This sort of Sherlock Holmes work is imbedded in so many different areas of our roles, that these examples go on ad infinitum.
Debt Collector:
It is no secret that we have to collect rent payments from tenants as they roll around, but some times people simply pay their rent late...or not at all. When rent isn't received, we gear up, put on our debt collector hat, and get to work. We hit them with telephone reminders, late notices, late fees, and a variety of correspondence saying "You now owe $XXX.xx, and it is due and payable immediately to avoid any further action.". Sounds very much like debt collector activity to me.
Contractor/Repairman:
This one is simple to understand. Things break. Plumbing stops up. Heat goes out. At any given point, regardless of how much preventative maintenance work you perform, you inevitably will receive maintenance calls from your tenants. When this occurs, you kick out a work order to your specific maintenance personnel or contractor, sometimes even to YOURSELF (Especially if you are a landlord on a tight budget, and have this skillset.). Then you follow up to make sure the issue is resolved in the following days and weeks. What about when a property becomes vacant, or needs updating, you certainly are going to have to put on your contractor hat to complete these projects. At this point you can almost drift into an artist or designer role (which I personally love).
Counselor:
The role of counselor/therapist/advisor comes in often, and usually imbeds itself in other areas/roles. Whether you are listening to a tenant's sob story about how their dog died and why they do not have all of their rent as a result, or you are acting as a mediator between two feuding neighbors, it's the same, you are going to have to act as a voice of reason, providing advice, assistance in finding a reasonable resolution... above all else, lending a set of kind, attentive ears. Trust me, you should put a high priority on ensuring that you become a good listener. It will help you professionally more than you could even possibly imagine. Sometimes being a good listener is all that it takes.
Enforcer:
People break the rules. In our case, most often through a multitude of lease violations/defaults. Some one has to keep them in line. 'Nuff said.
I could ramble infinitely describing the roles, responsibilities, duties, and "hats" that a landlord or PM can/will encounter... but I assume you get the point here. If you are new to managing investment properties, my biggest piece of advice is to STAY FLEXIBLE, and expect that if something is stressing you, not to worry long, as you will be working in your next role before you know it. If you do these things, you will be on your way to success. In my opinion, the variety in our field is what I love so much. There is no point when I get "burnt out", because one moment I am working hard in sales...the next I have a tenant crying on my shoulder...then the next I am overseeing a total remodel of a vacant space. Every day is fresh and exciting. I love it and I hope you do too.
What you should really take away from this post is that...
...Landlords and PM's must always be prepared to venture into a new role at the drop of...ummm...
...a hat!
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