The real estate industry uses a lot of slang. Most real estate professionals presume that everyone knows what they mean when they use a particular terminology. But only some understand it. Additionally, only some people are aware of what everything signifies. Most people could use assistance in resolving a typical misunderstanding.
Both phrases may have been used, as well. These words may have been used interchangeably in the past. There are some parallels between their objectives and their respective duties. However, landlords and property managers have essential distinctions from one another.
So, what are the similarities between landlords and property managers? What are the differences?
Property owners renting out their homes, apartments, mobile home parks, condos, or other types of real estate are known as landlords. Some landlords deal directly with tenants while managing their rental properties. For others, managing the rental property is handled by property management firms.
An individual, a team, or a group owning a residence occasionally qualifies as a landlord. But it might also be a business, a partnership, or another type of entity. The critical factor is ownership: The company is considered a landlord if it owns the real estate it rents.
A third party, called a property manager, oversees a rental property on behalf of the owner. The properties that the property manager looks after are not their own. However, they typically take full responsibility for all the rental matters, such as upkeep and dealing with tenants. Large property management firms can oversee buildings owned by a variety of clients.
A property manager can also be a member of the property owner's staff. Since an employee has no ownership interest, they are considered third parties.
Given that both manage properties, a landlord and a property manager are similar. Property management businesses serve as advisors to their clients, providing information on rent collection, property maintenance, and other problems that may develop.
While landlords and property managers interact with tenants, their levels of involvement vary. They both play comparable duties, such as:
The landlord maintains absolute authority over their rental properties. This is the fundamental and most crucial distinction between landlords and property managers. A landlord controls the properties under their management and can decide on particular criteria. While multiple landlords employ a property manager at once, these clients have little control over their individual rental properties.
A landlord's duties include making choices involving the rental property. These can apply to leasing, maintenance, and other needs. A landlord ensures that the property follows all applicable municipal health and safety laws, rules, and ordinances. A landlord hires a property manager to communicate with and mediate between them and their tenants. They handle evictions and leasing, among other things, for a monthly fee.
For more on landlords and property managers, visit Prime Property Group at our Oakland or Sacramento, California office. Call (510) 225-0470 or (916) 822-9655 to schedule an appointment today.