What does a property manager do? A licensed professional or company that runs a rental property for its owner: marketing and leasing it, collecting rent, handling repairs and tenants, and keeping the owner within the law, for a share of the rent.
A property manager stands between an owner and the tenants. On the leasing side they price the unit, advertise it, show it, screen applicants, and sign the lease on the owner's behalf. On the operating side they collect the rent, chase arrears, coordinate repairs with their contractors, conduct inspections, handle move-outs and deposits, and serve the notices and file the eviction when it comes to that. They keep the owner compliant with fair housing law, the state's landlord and tenant statute and the local licensing, and they send the owner a monthly statement and a year-end summary for the tax return.
The fee is typically eight to ten percent of the monthly rent collected, plus a leasing fee of half to one month's rent when a new tenant is placed, and sometimes a mark-up on repairs. In Nevada a property manager must hold a real estate licence with a property management permit from the Real Estate Division, and trust accounting rules govern how they hold the owner's money and the tenants' deposits.
Whether to hire one is a question about the owner's time and distance rather than about the property. An owner in another state, with several units, or with a job that cannot take a call at 2 a.m., usually earns the fee back in vacancy avoided and mistakes not made. An owner with one unit nearby often manages it themselves, with a state-specific lease and a good handyman.
A worked example
An owner in California rents a Henderson house for $2,200 a month through a manager at nine percent plus a half-month leasing fee. The manager places a tenant (fee $1,100), collects $2,200 monthly and remits $2,002, handles a water heater failure in August with their plumber, and sends a year-end statement the owner's tax preparer reads directly. The owner's cost is about $3,500 a year for never taking a call.
Build the lease a manager would use
Questions people ask
How much do property managers charge?
Typically eight to ten percent of the rent collected each month, a leasing fee of half to one month's rent when a tenant is placed, and sometimes a renewal fee or a mark-up on repairs. Flat-fee managers exist at $100 to $150 a month.
Do property managers need a licence in Nevada?
Yes. Nevada requires a real estate licence with a property management permit from the Real Estate Division, and the manager must hold tenants' deposits and owners' funds in a trust account.