Landlords vs Property Managers: What is the Difference?

Many people use the terms “landlord” and “property manager” interchangeably, which has led to a common misconception that these roles are the same. In reality, they’re quite different from each other. If you’re directed to your landlord or property manager and you go to the wrong one, not only is it a bit embarrassing, but it can hold up your transactions. 

Understanding the distinction between the two can prevent confusion down the road. We'll outline the key variances between the roles to help you differentiate them effortlessly. If you mistakenly approach the wrong individual, whether your landlord or property manager, not only does it cause a bit of embarrassment, but it can also delay your transactions.ly.

What is a Landlord?

A landlord, also known as a landowner, is someone who owns a property and rents it out to tenants. The landlord’s job is to handle all maintenance and repairs required within the property. These individuals often own either one property or several properties, using their land or housing as a source of income. 

Landowners work with the community managers to ensure that their property remains in good condition and the tenants are well-behaved and comfortable in their space. Landlords do not necessarily require managers, but in certain situations, working with them lessens their workload and makes their lives easier.

What is a Property Manager?

A property manager also known as a community manager is someone who oversees the operations of a rental. They are hired by the landlord to take on responsibilities that require a lot of time and effort. Community management includes a wide scope of responsibilities, including rental maintenance, basic repairs, rent collection, ensuring compliance with property guidelines, and more. 

Managers report directly to the landlord, keeping them updated and letting them know as soon as possible if any issues occur. Seeing as the workload of a community manager includes so many different tasks to juggle, many property managers seek assistance from property management software like ExactEstate. The ability to automate part of their job makes the daily tasks of a property manager much less stressful.

What Similarities Do They Share?

Landlords and community managers both oversee rental units, though landlords often delegate tasks to managers. However, some landlords handle these responsibilities independently, especially with smaller properties. They turn to property management only when they can't manage their community alone. As a result, not all landlords require assistance from property management companies.

Landlord vs Property Manager: Key Differences

Responsibilities

As noted earlier, landowners and community managers have distinct roles. Landlords focus on property upkeep, while community managers handle daily tasks demanding time and attention. These managers oversee property management for landlords, including rent collection, tenant checks, property maintenance, and repairs.

Community managers essentially work to lessen the landlord’s workload. A study has shown that 61% of landlords opt to work with management companies due to this reason, citing maintenance as one of the biggest challenges in owning a property. Though it seems tedious, property management is much more seamless and simple with the use of cloud-based property management software (PMS)  like ExactEstate.

Contact with Tenants

Landlords’ property management is usually kept professional and distant; if they have a manager, they only require minimal, if any, contact with their tenants. Instead, property managers are the ones who work closely with and transact with tenants, handling all complaints and trying to find resolutions. 

Lease

Lease contracts created by a property manager and a landlord also tend to be different. If a landlord drafts the lease, then it will most likely include more specific rules and guidelines. 

Some common examples of these are policies regarding pets within the property, guidelines about what is and isn’t allowed on the property, and similar concepts. On the other hand, community managers take a more generalized approach to creating a lease agreement; these lease contracts typically focus on state and federal laws and general policies to be considered by potential tenants. 

Landlords may also use a generalized lease, but those are typically provided by lawyers or other hired sources.

Do Landowners Need Property Managers?

Rented properties are in demand, especially for non-homeowners or individuals who are only planning on staying in a certain place for a short time. In 2021, it was reported that rental rates have undergone a 31% increase over the past ten years. 

However, numerous landlords opt to invest in multiple properties to generate income, either as their primary or supplementary source. If they possess an excessive number of properties to manage independently, entrusting landlords' property management to capable hands is advisable. Property managers emerge as suitable candidates, given their experience and familiarity with property management laws and tasks.

About ExactEstate

ExactEstate has developed a modernized cloud-based property management software to make landlords’ management easier through automation. Built by property managers for property managers, our software provides convenience for tenants, managers, and landlords alike. PMS software is so popular that 90.1% of millennial respondents have stated that they are willing to pay a higher price for rent in a property that incorporates property management software or proptech into their operations.

Do you want enhanced productivity and functionality between you and your tenants? Book a demo with us today to get started.