Property management & leasing
Property Manager: Definition & Example
What Is a Property Manager?
A property manager is a person or company hired by a property owner to run day-to-day operations, including leasing, rent collection, maintenance, and tenant relations.
What does property manager mean?
Property managers handle marketing vacancies, showing units, screening applicants, signing leases, collecting rent, coordinating maintenance, handling notices and evictions, and reporting to the owner. In exchange, they typically charge 8% to 12% of collected rent for residential property, plus leasing and renewal fees.
Many states require property managers who lease or manage property for others to hold a real estate broker license or work under a licensed broker. Managers usually hold tenant security deposits and rent in trust accounts subject to state rules.
Screening is one of a property manager’s most important jobs. Consistent, written rental criteria applied the same way to every applicant help reduce bad placements and fair housing risk.
Property manager example
An owner of six single-family rentals hires a property manager at 9% of collected rent. The manager fills a vacancy, screens and places a new tenant, handles a water heater replacement, and sends the owner a monthly owner statement with the net distribution.
Related terms
- Owner StatementAn owner statement is a periodic report a property manager sends a property owner summarizing income collected, expenses paid, management fees, and the net amount distributed.
- Tenant ScreeningTenant screening is the process landlords use to evaluate rental applicants, typically by reviewing identity, income, rental history, credit, and background information against written criteria.
- Rental CriteriaRental criteria are the written standards a landlord uses to evaluate every applicant, such as minimum income, rental history, credit, and background requirements.
- Rent RollA rent roll is a report that lists every unit in a property with its tenant, rent, lease dates, deposits, and balance due, giving a snapshot of the property’s rental income.
- Fair Housing ActThe Fair Housing Act is a federal law that prohibits discrimination in renting, selling, and financing housing based on race, color, national origin, religion, sex, familial status, or disability.
Property manager FAQ
- How much does a property manager charge?
- For residential rentals, commonly 8% to 12% of collected monthly rent, plus fees for leasing a vacant unit, renewals, and sometimes maintenance coordination.
- Do property managers need a license?
- In most states, yes. Managing or leasing property for others usually requires a real estate broker license or working under a licensed broker, though requirements vary.
