What is Property Management?

Property Manager

What is Property Management?


For every investor, their rental properties can be a source of healthy passive income. Think about it: you buy a house, rent it out to a third party, and get passive income every month. That sounds like a sweet deal, right? Unfortunately, it’s not that simple for most people. No matter the size of the investment portfolio, managing a rental property takes time and commitment. You’ll have to stay on top of general maintenance issues, advertise the listing to potential tenants, and then stay in touch with them once they’ve moved in to ensure they’re happy.


For a person who has several rental properties and a full-time job, managing a rental property can seem borderline impossible; that’s where property management can help.


Understanding Property Management


Property management is overseeing and handling the business operations of a real estate property, which a third party often does. It can be done for both commercial and residential properties. There’s a lot that goes into managing a property successfully. When the tenants are happy, the stream of passive income stays healthy. Property management is essential for several real estate investors since they have several rental properties and can’t oversee each property simultaneously. That is why they hire property managers. When an investor decides to partner up with a property manager, the heavy lifting involved in property management is no longer their responsibility.


What Are Property Managers Responsible for?


A property manager offers a wide range of real estate services. These deal with the maintenance and care of several or a single rental property. On a broader scale, a property manager’s responsibility is to ensure the investor’s investment portfolio succeeds. On a daily basis, a property manager’s responsibilities may include:


  • Maintaining a positive relationship with clients and managing the eviction process when needed
  • Advertising listings to attract potential clients
  • Keeping a detailed record of the financial statements and preparing reports of income for the property owner
  • Enforcing and then administering lease agreements
  • Scheduling repairs and maintenance
  • Rent collection


At a glance, you can see how many tasks a property manager must have to juggle to ensure both parties (the landowner and the tenant) stay happy. Moreover, several property managers also use property management software that automates most of their work. With help from software, managing front office operations becomes a lot easier, and property managers can balance other operations more efficiently. This way, the investor can also choose their level of involvement with the process. If they prefer to stay in the loop, they can regularly communicate with their property manager. If they have their hands tied up with other commitments, they can rest easy knowing their property manager manages their investment efficiently.


The Benefits of Property Management


While you save a lot of time by working with property managers, time saved isn’t the only benefit of property management. There are several other reasons to hire a property manager:


  • Tenants usually prefer working with property managers rather than landlords since the process is usually smoother. As a result, this ultimately impacts the tenant’s view of the property. Renters who deal with a property manager usually end up leaving a good review of the property when they vacate it.
  • When an investor works with a stellar property management firm, they have access to a list of seasoned contractors. These contacts work in the landowner’s favor, and it helps them save on future maintenance costs on other properties. Moreover, contractors can come to the property owner with recommendations which are invaluable as well.
  • A property manager looks after rental properties for their living: it’s their job. This means they have an eye for a good tenant and consider several intricacies of the process that you can’t even think of.


A great property management company is worth its weight in gold. In the long run, property managers can help you save more than what they charge you. This is a win-win-win: happy tenants, content property managers, and a satisfied investor. 

Turn Extra Cash into Lasting Legacy: Help Your son/daughter Own a Home!

April 28, 2025
Helping Your Child Buy a Home: Smart Strategies with Tax Benefits  Many parents want to help their children buy a home, but doing so in a way that also provides financial and tax advantages is key. Here are a few strategies to consider when assisting your son or daughter with homeownership while maximizing tax benefits. 1. Gifting Money for a Down Payment The IRS allows individuals to gift up to $18,000 per recipient annually ($36,000 for married couples) without triggering a gift tax. If you stay within this limit, your child receives a down payment boost without tax consequences. 2. Loaning Money to Your Child Instead of gifting, you can lend money at the IRS’s Applicable Federal Rate (AFR), which is often lower than traditional mortgage rates. Structuring it as a formal loan allows your child to build equity while you may receive interest income. 3. Co-Signing or Co-Owning the Home Some parents choose to co-sign a mortgage or co-own the home. While this can help secure better loan terms, it also means shared financial responsibility. If you co-own, you may be able to deduct mortgage interest and property taxes on your tax return, depending on usage. 4. Buying the Home as an Investment Property If your child pays you rent, the home could be classified as an investment property. This allows you to deduct expenses like mortgage interest, property taxes, and maintenance. However, rental income must be reported to the IRS. Final Thoughts Every financial situation is unique, and tax laws change. Consulting with a tax professional or estate planner ensures that your support aligns with your financial goals and tax strategy. Helping your child buy a home is a generous step—doing it wisely ensures benefits for both of you.

Using Our Screening Score Sheet for Rental Applications

April 21, 2025
When applying for one of our rental properties, we use a comprehensive screening score sheet to ensure all applicants are held to the same standard. The score sheet evaluates various aspects of your financial stability and rental history, helping the landlord make informed decisions while maintaining a fair and transparent process! Here’s a breakdown of how we assess your application utilizing the screening score sheet: 1. Length of Residency: While longer periods at previous residences typically suggest reliability and commitment, we understand that some applicants may be first-time renters. We welcome first-time renters, and on the screening score sheet, you can assign yourself a "1" under "Length of Residency" if this is your first rental experience! 2. Collections: We review any outstanding collections, including monthly utilities or bills, as well as loans (excluding medical bills). This helps us assess your overall financial responsibility. Your estimated monthly payment for all your loans, utilities and bills is also taken into consideration. 3. Rent-to-Income Ratio (per household): To ensure you can comfortably afford the rent, we require that your monthly income is at least 2.5 times the rent amount. This ratio helps us verify your ability to manage rent payments alongside other living expenses. 4. FICO Score: While there is no specific minimum FICO score, we do take it into account when evaluating your financial health. A higher score indicates a history of responsible credit management. 5. NSF/Late Payments & Landlord Disputes: We look into your rental history to ensure that there are no frequent NSF (non-sufficient funds) or late payments, and that there are no unresolved disputes with previous landlords. Please note that all application charges are non-refundable, and every occupant over the age of 18 must submit a separate application. Our scoring system ranges from 0 to 21, with 15 being the lowest acceptable score. All approvals or denials are ultimately decided by the property owner. We do not operate off a first come first serve basis, so if you are curious about the status of applications prior to applying, please don’t hesitate to call our office! By using our screening score sheet, we aim to create a rental environment where both tenants and property owners can thrive. This score sheet can be found on our site, under the Before You Apply Manual, as well as under “Rental Resources”.

Declutter and Earn: Join the Outdoor Swap Meet at the Downtown Recreation Center in Henderson!

April 16, 2025
Looking to declutter your home while making some extra cash? The outdoor swap meet at the Downtown Recreation Center in Henderson is the perfect opportunity! Whether you’re cleaning out your closets, clearing space in your garage, or finding a new home for gently used toys, books, and clothes, this event is your chance to turn those items into money. Each booth equals two parking spots, and registration is required at least one week in advance. All booths are assigned randomly, ensuring a fair and fun atmosphere for all. Remember, only second-hand items can be sold, so it’s a great way to recycle and give your items a second life. Event takes place April 19th & May 17th! The swap meet opens at 7am, so come early to shop! Admission is free for all ages, making it a perfect outing for families looking to find unique treasures. Ready to get started? Simply register on the City of Henderson website to secure your spot. It’s time to clean out, earn some extra cash, and find something new – don’t miss out on this exciting event at the Downtown Recreation Center!
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