What Does a Property Manager Do? A Landlord’s Guide

Managing a rental property can be time-consuming and complex, especially for landlords with full-time jobs. Without expert knowledge of legal requirements and market trends, it’s easy to feel overwhelmed. That’s where a professional property manager comes in. They can protect your investment and handle the day-to-day work related to tenant management, so you don’t have to. Read our blog post to learn more about what exactly a property manager does. 

Key takeaways 

This blog answers two key questions: 

What is property management? 

Property management means that there is an external person handling every aspect of the rental process. Property managers support landlords by ensuring their investment properties are well-maintained, compliant, and profitable.

What is a property manager’s greatest responsibility? 

A property manager’s greatest responsibility is to help you maximise returns on your investment property with minimal involvement on your end. Their job is to simplify your life by handling all tasks related to property maintenance and tenant satisfaction. 

Who is a property manager? 

A property manager is a professional responsible for overseeing and managing real estate properties on behalf of the landlords, owners and investors. They have a range of duties, such as collecting rent, handling repairs, marketing properties, screening tenants, and more. Property managers serve as the main point of contact between landlords and tenants. Their goal is to protect the owner’s investment while ensuring tenants are satisfied with the property. 

Property managers can specialise in residential, commercial and industrial properties. This blog highlights the responsibilities of residential property management. If you’re wondering, “What does a commercial property manager do?” their roles and responsibilities can be quite different. 

At Independent Property Group, we are experts in residential property management. Our goal is to provide landlords with stability and peace of mind. Our expert team brings up-to-date industry knowledge about the property market and a comprehensive history of each managed property. 

What’s the difference between a property manager and a real estate agent? 

You might be wondering, “What is the role of a property manager?”, especially when compared to real estate agents. Both property managers and real estate agents are important to real estate investments. A real estate agent is involved in buying and selling properties and may help owners find a tenant. A real estate agent's main focus is on property transactions. 

A property manager looks after investment properties on behalf of the owners. Their main focus is the day-to-day running of the rental property. They serve as an intermediate between owners and tenants (or prospective tenants). Property managers are not directly involved in buying or selling properties, but are involved in leasing.

What does a property manager do? 

There are many reasons why you need a property manager. Property managers have responsibilities before, during and after the property is leased out. We’ve listed them out below. 

Before the property is leased out 

Getting the property ready for tenants 

A property manager prepares the property for inspection. This means handling all necessary repairs, cleaning, and maintenance to ensure the property is in good condition for prospective tenants. They also confirm that the property complies with all safety and legal requirements, such as smoke alarms and electrical checks, and prepare all documentation, including compliance with the new S119 requirements for units in Canberra.

Setting a competitive rental price 

A property manager helps landlords decide on a competitive rental price. This includes comparing similar properties in the area, considering current demand, discussing rental rates with owners, and factoring in the property’s features and location to set a rental price. The goal is to set a rental price that offers stable returns and reduces uncertainty for the landlord.

Advertising the property 

The property manager creates a listing with professional photos and detailed descriptions to highlight the property’s features. Their goal is to attract the right audience of prospective tenants.

Screening tenants 

Tenant applications are thoroughly reviewed with employment verification, rental history, and reference checks. A property manager can maintain professional distance during this process. This objective approach helps select tenants who are financially reliable and likely to be long-term tenants.

Negotiating the rent 

Once a tenant is selected, the property manager acts as an intermediary during rent negotiations. They represent the landlord’s interests and use market data to guide negotiations. A property manager’s goal is to meet the landlord’s minimum rent requirement while encouraging long-term occupancy.

Preparing the lease 

The manager drafts a legally compliant lease agreement that clearly outlines all terms, responsibilities, and obligations. This includes details of the tenant and landlord, rent amount, due dates, payment method, bond requirements, all standard terms as per the Residential Tenancies Act 1997, any special terms, and more. The lease protects both parties and reduces the risk of disputes.

During tenancy

Conducting inspections

Routine inspections are carried out to ensure the property is well-maintained. In Canberra, landlords can inspect the property during the first and final months of the tenancy, and twice in each 12-month period from when the tenancy begins. The property manager takes this responsibility off the landlord’s shoulders. They provide detailed reports and photos about the condition of the property without the landlord needing to be directly involved.

Managing tenant communication and complaints 

Property managers handle all tenant communication, concerns, and complaints. This creates a professional buffer between landlord and tenant, reducing personal stress. Issues are logged, managed, and followed up appropriately and on time, which busy landlords may not be able to manage. This helps landlords avoid difficult conversations or emotional involvement in tenancy matters.

Organising repairs and suppliers for property maintenance 

When maintenance is needed, property managers coordinate with trusted trades to resolve issues quickly. They have access to a reliable network of contractors. From plumbing to electrical, all urgent and non-urgent repairs are arranged without landlords needing to source or manage tradespeople themselves. 

Collecting rent and addressing any payment issues 

Property managers ensure rent is collected on time and according to the conditions set out in the lease. In case of delays, they manage payment reminders, notices, and formal processes. Landlords benefit from a consistent income stream without needing to chase payments or engage in uncomfortable financial discussions with tenants.

Performing administrative tasks 

The property manager handles all record-keeping, lease documentation, and financial tracking, including council rates, water bills, and insurance. With everything documented and accessible in one place, landlords can "set and forget," knowing that their investment is compliant. Property managers are also well-versed in the latest rules and regulations. Landlords don’t have to worry about changes in laws or their impact on the property. 

Managing tenant departure 

Property managers oversee all aspects of tenant departure, including ending a tenancy early. They are responsible for final inspections and any break lease fees (if applicable). They ensure the property is returned in acceptable condition and handle key handover. There is minimal landlord involvement.

After the lease ends 

Organising repairs 

After a tenant vacates, property managers assess any damage beyond fair wear and tear and coordinate necessary repairs. They arrange qualified trades quickly to ensure the property is in good condition. This reduces vacancy time and ensures your investment remains in top shape for the next tenant.

Preparing the property for re-letting 

Property managers handle cleaning, maintenance, and presentation to ensure the property is market-ready. If the tenant is still occupying the property, they coordinate inspections according to their availability. Their goal is to attract high-quality tenants quickly and ensure a smooth transition between leases with minimal vacancy time.

How much do property managers charge?

Property management fees are not as simple as a number or a percentage. They are divided into a few categories:

• Leasing or letting fees: 

This is a fee associated with getting a new tenant for the property. It is a flat fee based on the asking rent (generally 1-1.5 weeks’ rent in Canberra). This fee may include marketing fees.   

• Ongoing management fees: 

These are the fees for day-to-day property management tasks and are charged after the tenant is secured. In Canberra, this can vary between 4% to 11% of the rent, and can be up to 16% for all-inclusive plans. 

• Ancillary Fees: 

Some property management companies charge extra fees for ad hoc tasks, such as administration, lease renewal, advertising, inspection, etc. 

When you’re selecting a property management company, get itemised fee structures to compare your options. Select one where you’re getting the maximum return on your investment property. Read more in our blog on what a property manager costs. 

How do I choose a property manager? 

Choosing the right property manager has a direct impact on how your investment property performs. Your property manager should meet a gold standard of service, like the professionals at Independent Property Group, ensuring your property is well-managed, profitable, and stress-free.

Your property manager should be able to provide proof of the following: 

• Thorough tenant vetting to ensure rent is affordable
• Proven ability to secure the right rent for your property type
• Expert guidance to reduce vacancy and maximise income
• Detailed inspections and accurate record keeping
• Experience in managing every aspect of your property, from finances to maintenance, to reduce landlord stress
• Strong communication skills to maintain productive tenant relationships 
• Unmatched knowledge of the local market, especially within different suburbs
• Proactive problem-solving to identify issues early and minimise escalation

Partnering with a manager who meets these criteria means gaining peace of mind regarding your investment. Independent Property Group’s property managers embody these qualities. Make sure yours does too. 

Final Thoughts 

If you’re looking for a reliable property management company to protect your investment and reduce stress, contact Independent Property Group today. With over 60 years of local experience in Canberra, our expert team is ready to help you get the most from your investment property.

References:

• https://www.legislation.act.gov.au/View/GetHTMLFile/a/1997-84/current/html/1997-84.html 
• https://www.act.gov.au/housing-planning-and-property/renting/during-a-tenancy 
• https://www.act.gov.au/housing-planning-and-property/renting
• https://www.act.gov.au/housing-planning-and-property/renting/ending-a-tenancy