If you’re wondering, “What does a property manager do?” — you’re not alone. Many property owners ask this question, whether they’re interested in hiring a property manager to handle their tenant screening or they need help with property maintenance and rent collection.
In this guide, we’ll discuss what a property manager does, the pros and cons of working with one, and more must-know details. Before we get into the eight most common property manager responsibilities, let’s start with an overview of the types of property managers you can hire.
Types of Property Management
You can hire a property manager for:
- Residential property management of single-family homes, multifamily homes, apartments, vacation rentals, condos, and townhomes
- Commercial property management of offices and retail properties
- Industrial property management of warehouses and factories
- Special-purpose property management of churches, hospitals, theaters, and schools
Pro tip: Most property managers specialize in one type of property. If you have a diverse or unique portfolio, make sure you hire a manager with experience that matches your needs.
8 Typical Property Manager Responsibilities
Some of the most common property manager responsibilities include:
- Securing new tenants and handling tenant turnover
- Ensuring property owners follow the law
- Collecting rent, bookkeeping, and paperwork
- Marketing vacant properties
- Overseeing maintenance and repairs
- Maintaining properties
- Addressing tenant complaints
- Assisting with taxes
Let’s walk through each duty to gain a better understanding of what a property manager does.
1. Securing New Tenants and Handling Tenant Turnover
When you hire a property manager, they’ll often take over the entire process of filling your vacancies. Property managers are responsible for finding, screening, and securing tenants, and will handle all tasks surrounding a tenant’s move-out.
These responsibilities typically consist of:
- Inspecting the property at the end of the lease
- Returning the security deposit
- Showing the rental
- Tenant screening
- Creating a new lease
- Obtaining the landlord’s and tenant’s signatures
- Communicating with renters and tenants
2. Ensuring Property Owners Follow the Law
Maintaining the legal compliance of landlords and investors is one of a property manager’s most crucial responsibilities. Many states, as well as some cities, have specific rental laws and regulations that property owners must adhere to.
At the federal level, there are laws dictating the types of investments you can make, tenant-landlord laws, and anti-discrimination laws protecting renters. Certain federal laws affect both landlords and property managers, including:
The Fair Housing Act (FHA): The FHA prohibits both landlords and property managers from discriminating against renters based on:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability (Fair Housing Act)
Example: Under the FHA, a property investor can’t disqualify a rental applicant because they have a child.
The Fair Credit Reporting Act (FCRA): The FCRA regulates how property owners use a tenant’s credit history during tenant screening. If they deny an applicant based on their credit report, landlords must inform the applicant (Fair Credit Reporting Act).
Example: The law requires both owners and property managers to obtain an applicant’s written permission before conducting a credit check.
Investors often hire property managers to ensure they’re complying with all local rental laws and regulations. They can be beneficial for investors who live out of town or aren’t familiar with the laws in their listing’s area.
Property managers take the lead on ensuring:
- Leases (and other official paperwork) are complete and legally binding
- Tenant screening is fair, accurate, and consistent without compromising properties or revenue
- Investors avoid accusations of discrimination, unfair hiring, or poor application practices
- Rental buildings comply with city parking regulations
- Apartments adhere to federal and state safety standards
- Properties are protected against hazards (including weather, fires, or other issues)
The bottom line? Property managers help property owners stay legally protected in a wide variety of ways.
3. Collecting Rent, Bookkeeping, and Paperwork
Rent collection headaches? Not when you have a property manager! They’ll collect rent on your behalf, handling everything from late fees/notices to tenant communication and depositing the funds.
Property managers also oversee all bookkeeping and paperwork tasks. They’re typically responsible for:
- Creating, distributing, and collecting rental application forms
- Addressing tenant maintenance requests
- Documenting tenant complaints
- Rental renewal forms and lease agreements
- Properly safeguarding sensitive tenant records
4. Marketing Vacant Properties
Most property management companies also take on listing marketing. A strong and successful advertising strategy gets more eyes on your property – and ultimately helps them fill your vacancy. Property managers usually market listings by:
- Scheduling a professional real estate photographer
- Creating a physical advertisement
- Posting the property on rental listing sites
- Posting the property to social media accounts
- Holding an open house
- Scheduling one-on-one renter tours
5. Overseeing Maintenance and Repairs
Plumbing repairs? Electrical problems? Lack of hot water? Property managers take care of the occasional repairs every property needs, whether it’s occupied or vacant. Here’s how:
- When a tenant submits a maintenance request, the property manager responds to the tenant and hires a contractor to perform the work.
- If the unit’s empty, property managers are responsible for handling preventative maintenance or emergency repairs.
Typically, larger companies employ in-house staff to handle maintenance, while smaller companies rely on a network of contractors for repairs.
After scheduling and overseeing the repair, they make sure the contractor gets paid. Most property managers charge a markup fee on the repair’s invoice to compensate them for managing the process.
6. Maintaining Properties
Property managers keep your rental units in top condition by:
- Arranging yard maintenance like watering, fertilizing, and trimming plants
- Ensuring the street is clean and free of trash and litter
- Regulating parking and making sure tenants park in the appropriate spots
- Fixing damage outside or around the unit
- And more
7. Addressing Tenant Complaints
To maintain happy, high-quality tenants, property managers strive to keep tenants satisfied. They handle tenant pain points, such as:
- Noise complaints about neighbors or environmental factors
- Complaints about broken property features
- Complaints about other tenants
Depending on the issue at hand, property managers will take the necessary steps to assist the tenant. Perhaps it’s coordinating the repair and hiring the contractor. Alternatively, it helps tenants resolve interpersonal disputes. In other cases, it’s sending official warnings to troublesome neighbors.
Beyond helping tenants resolve the issue, property managers collect and file tenant complaints. They create a paper trail of all communications between a tenant and a property owner. If legal issues arise in the future, landlords can defend themselves using these records.
8. Assisting with Taxes
Some property managers offer tax assistance by filing taxes on behalf of their clients’ investment properties. Some investors opt to have a property manager file their taxes. Others prefer to have their property manager deliver tax documents to a tax preparer. In some instances, property managers are required to fill out specific tax forms.
Example: The IRS requires property managers to fill out the 1099-MISC tax form if they work with an unincorporated vendor or pay a vendor more than $600 in a calendar year.
Benefits and Drawbacks of Hiring a Property Manager for Real Estate Properties
Whether you’re an investor or a small landlord, hiring a property manager could be one of the wisest decisions you make. However, it doesn’t come without some drawbacks.
To help you determine what’s best for your business, here’s a quick overview of the pros and cons of hiring a property manager:
| Benefits | Drawbacks |
| More time for other tasks | Extra expense |
| Invest in areas away from home | Lack of control in day-to-day operations |
| Experienced tenant screening | Potential lax screening procedures |
| Avoid the stress of property maintenance and repair | Deferred maintenance |
Benefits of Hiring a Property Manager
Free up time for other tasks: Property managers take a significant amount of work off your hands, including maintenance tasks, handling tenant complaints, and more. They allow you to focus your attention elsewhere, whether it’s growing your portfolio or pursuing a new hobby.
Opportunity to expand into other markets: Without a property manager, your investment opportunities are limited by how far you can drive in a few hours. Property managers handle day-to-day operations, giving you the freedom to invest in new areas.
Thorough, experienced tenant screening: Finding the right tenants to fill an investment property can be time-consuming and tedious. Professional property managers will help you find responsible, qualified tenants for your vacant units.
Avoid stressful property maintenance and repairs: No investor loves getting calls in the middle of the night about a burst pipe. A property manager handles tenant communication and coordinates repairs and maintenance.
Drawbacks of Hiring a Property Manager
Extra expenses can be unpredictable: Property management fees vary, but most companies charge between 8% and 12% of the monthly rental income. Many companies charge additional fees for tasks outside of daily operations, such as maintenance or filling vacancies.
The added expense may be outside the budget for some real estate investors. However, the increased cost is often offset by the ability to purchase new properties or keep current properties filled with tenants.
Lack of control in day-to-day operations: Since investors delegate tasks to their property managers, they don’t always have the final say in day-to-day operations. This reality is especially true for landlords who live out of town.
Potential for inadequate screening procedures: Some property managers are under pressure to quickly fill units. In these cases, they may not be as diligent in screening applicants as an investor would prefer.
Deferred maintenance: 80% of property managers coordinate or perform maintenance and repairs. However, few property managers cite maintenance as a primary concern. The data suggests a trend of deferred maintenance, which can lead to significant issues in the future.
Pro tip: Many of these drawbacks can be resolved by hiring the right property manager. We recommend interviewing property management companies to find the best fit for you.
When is it a good idea to hire a property manager?
Should you hire a property manager now, or later down the road? Is hiring a property manager right for you in the first place?
There are many different circumstances where it’s smart to add a skilled property manager to your team. Let’s talk through a few of the different scenarios where property managers make sense:
You’re Investing Away From Your Hometown
When you want to expand your portfolio into areas outside of your immediate location, property managers can help make it happen. They’ll cover the in-person responsibilities and coordinate with professionals in their local market.
You Own Many Investment Properties
Have a dozen different properties to juggle? A property manager may be a wise investment. When the workload becomes too heavy, property managers can make things much more manageable. We recommend considering a property manager as soon as you have more than five rental units.
You Don’t Want to Handle Maintenance
If you don’t want to deal with hiring contractors and responding to tenant requests, you should look into a property management company ASAP. Issues can arise at any time, and tenants need attentiveness (and their problems resolved).
A Large Number of Maintenance Requests
The more maintenance requests an owner has, the more valuable a property management company becomes. Property managers are particularly useful for properties with recurring maintenance needs, such as those with often-broken appliances.
Not Wanting to Handle Bad Tenants or Tenant Issues
No one likes to deal with problematic tenants. If you don’t have the bandwidth to do it, pass the job off to a property manager. If tenant issues escalate and you need to evict the resident, property managers can take over to help keep the process as painless as possible.
Wanting More Free Time and Less Stress
Would you prefer to take on a more passive ownership role? Property managers can help you spend time elsewhere, whether it’s with your family or working another job. After all, the primary reason for building a rental property portfolio is to generate income and enjoy life. Property managers let investors do just that.
Are there educational requirements to be a property manager?
Yes, there are educational requirements for being a property manager. The requirements vary by state, but typically include:
- Age (18–21, depending on the state)
- High school diploma or GED
- Legal U.S. resident or citizen
Licensing for Property Managers
Most states also require property managers to obtain a real estate broker’s license or a property management license. Check the table below for the requirements in your state:
| State | License requirements |
| Alabama | Real estate broker license |
| Alaska | Real estate broker license |
| Arizona | Real estate broker license |
| Arkansas | Real estate broker license |
| California | Real estate broker license |
| Colorado | Real estate broker license |
| Connecticut | Real estate broker license |
| Delaware | Real estate broker license |
| Florida | Real estate broker license |
| Georgia | Real estate broker license |
| Hawaii | Real estate broker license |
| Idaho | No requirement |
| Illinois | Real estate broker license |
| Indiana | Real estate broker license |
| Iowa | Real estate broker license |
| Kansas | No requirement |
| Kentucky | Real estate broker license |
| Louisiana | Real estate broker license |
| Maine | No requirement |
| Maryland | No requirement |
| Massachusetts | No requirement |
| Michigan | Real estate broker license |
| Minnesota | Real estate broker license |
| Mississippi | Real estate broker license |
| Missouri | Real estate broker license |
| Montana | Property management license |
| Nebraska | Real estate broker license |
| Nevada | Real estate broker license |
| New Hampshire | Real estate broker license |
| New Jersey | Real estate broker license |
| New Mexico | Real estate broker license |
| New York | Real estate broker license |
| North Carolina | Real estate broker license |
| North Dakota | Real estate broker license |
| Ohio | Real estate broker license |
| Oklahoma | Real estate broker license |
| Oregon | Real estate broker license OR Property management license |
| Pennsylvania | Real estate broker license |
| Rhode Island | Real estate broker license |
| South Carolina | Property management license |
| South Dakota | Property management license |
| Tennessee | Real estate broker license |
| Texas | Real estate broker license |
| Utah | Real estate broker license |
| Vermont | No requirement |
| Virginia | Real estate broker license |
| Washington | Real estate broker license |
| West Virginia | Real estate broker license |
| Wisconsin | Real estate broker license |
| Wyoming | Real estate broker license |
Continuing Education for Property Managers
Many property managers look for opportunities to continue their education, increase career opportunities, and help property managers appeal to higher-level clients.
There are several professional property management organizations. Most offer special certifications, including:
- Certified Property Manager (CPM)
- Residential Management Professional (RMP)
- Master Property Manager (MPM)
- Accredited Residential Manager (ARM)
- Accredited Commercial Manager (ACoM)
- Property Administrator Certificate (PAC)
- Facilities Management Certificate (FMC)
- Building Systems Maintenance Certificate (SMC)
- Real Property Administrator (RPA)
- Certified Apartment Manager (CAM)
- Vacation Rental Management Certificate Program
Property Manager FAQs
Do property managers own rental properties?
They can. For example, a duplex owner who lives in the first unit and rents out the second unit is technically both a landlord and a property manager. However, full property management companies do not own rental properties. Instead, they work on behalf of investors or property owners.
Can property owners manage their own properties?
Yes, property owners can choose to manage their own properties. However, many landlords and investors opt to hire a property manager when they:
- Have too many units
- Don’t want to deal with the day-to-day
- Want to invest outside of their local market
Who do property managers work for?
They can work for anyone who owns property and rents it out to tenants, including:
- Real estate investors
- Apartment building owners
- Single-family homeowners
