What’s The Difference Between a Landlord vs. a Property Manager?

When renting a property, tenants often deal with either a landlord or a property manager — or sometimes both. Though the terms are sometimes used interchangeably, they refer to two distinct roles in the rental process. Understanding the differences between a landlord vs. a property manager can clarify expectations and help you navigate any issues that arise during your tenancy. So let’s break down the differences between landlords and property managers, their respective responsibilities, and how they impact both tenants and property owners.

What is a Landlord?

While the term “landlord” is used quite often, many people might not know the nuances of what it entails. A landlord is an individual or entity that owns a rental property. As the property owner, they have legal and financial responsibilities for the property. Landlords can be people who own just one property or companies that own large portfolios of rental units.

Some of the primary duties of a landlord include:

1. Property Ownership: Landlords hold the title to the property, meaning they are financially responsible for its maintenance, improvements, and mortgage. This gives them control over rent prices, lease terms, and who they rent to.
2. Setting Rent and Lease Terms: Landlords decide how much to charge for rent, which can be influenced by market conditions, location, property size, and other factors. They also establish the lease terms, including the duration of the lease, pet policies, and whether utilities are included.
3. Managing Financial Aspects: Landlords are responsible for the financial side of renting out their property. This includes collecting rent, paying property taxes, and maintaining insurance for the property.
4. Legal Compliance: Landlords must ensure their properties comply with local housing laws and regulations, including health and safety codes. They are also responsible for following eviction procedures and managing disputes with tenants if necessary.

In many cases, particularly with small-scale property owners, landlords directly manage these tasks themselves. However, not every landlord has the time, expertise, or desire to be hands-on with their properties, which is where property managers come into play.

What is a Property Manager?

A property manager is a third-party professional or company hired by the landlord to handle the day-to-day operations of a rental property. While landlords own the property, property managers act as intermediaries between the landlord and the tenant. Their job is to ensure the property is properly managed, tenants’ needs are met, and the landlord’s financial goals are achieved.

Key responsibilities of property managers include:

1. Tenant Management: Property managers often handle tenant communication, addressing issues such as maintenance requests, lease renewals, and complaints. They act as the first point of contact for tenants and resolve problems on behalf of the landlord.
2. Rent Collection: Property managers are typically responsible for collecting rent and managing late payments. They may also handle evictions if tenants fail to pay rent or violate lease terms.
3. Maintenance and Repairs: Property managers ensure the property is kept in good condition by coordinating repairs and maintenance. They often have relationships with contractors and vendors that allow them to quickly hire the right person for a given job.
4. Screening Tenants: One of the most important tasks property managers perform is screening potential tenants. They review rental applications, run background checks, verify employment and income, and ensure applicants meet the landlord’s criteria.
5. Enforcing Lease Terms: Property managers ensure that tenants adhere to the lease terms set by the landlord. This can include enforcing pet policies, ensuring the property is properly maintained by the tenant, and addressing any lease violations.
6. Reporting and Financial Management: Property managers provide landlords with regular reports on the financial and operational status of the property. This includes tracking rental income, expenses, and profits. Property managers may also assist in setting rental rates based on market trends.

While landlords can hire property managers to take on these tasks, property managers do not own the properties they manage—they work on behalf of the owner to keep things running smoothly.

Key Differences Between a Landlord vs. a Property Manager

Understanding the differences between landlords and property managers is helpful for tenants as well as property owners. Let’s break down the main distinctions between the two roles:

Ownership vs. Management

Landlords legally own their property and have the ultimate control over it. They make major decisions, such as setting rent prices, choosing whether to sell or renovate the property, and deciding whether to hire a property manager. Property managers do not own the property; they are hired by the landlord to manage the day-to-day operations and tenant interactions.

Decision-Making Power

Landlords have the final say on significant matters, such as rent increases, lease renewals, and property upgrades. Property managers may provide recommendations, but the landlord makes the ultimate decisions. Property managers implement the landlord’s decisions and handle minor issues autonomously. However, for larger matters like lease adjustments or property renovations, they must consult the landlord.

Hands-On vs. Hands-Off

Landlords who manage their properties directly tend to be more hands-on, handling tenant issues, maintenance, and financial matters themselves. This is common among small property owners who prefer direct involvement.

Property managers are often employed when landlords want to take a more hands-off approach, especially if they own multiple properties or live far from the rental property. They take care of maintenance and ensure tenants are taken care of, allowing landlords to be more passive in their role.

Property Management Expertise

Landlords, especially first-time or small-scale owners, may not have extensive knowledge about tenant laws, property maintenance, or marketing. They may learn through experience.

Property managers are professionals with specific expertise in the rental industry. They understand the complexities of tenant-landlord law, how to market a rental property, and how to address maintenance issues efficiently. They bring experience and industry knowledge to the table, making them valuable assets for landlords who don’t have the time, energy or expertise to handle managing their own rentals.

Fees and Costs

Landlords keep all rental income but must shoulder all the costs of maintaining the property, including any mistakes or mismanagement. Property managers charge a fee for their services, which is typically a percentage of the rental income. While this reduces the landlord’s direct profit, property managers can often save landlords money in the long run by reducing vacancies, minimizing costly repairs, and ensuring prompt rent collection.

A Landlord vs. a Property Manager: Is One Better?

In the rental market, both landlords and property managers play crucial roles, but they are not the same. While landlords own the property and have ultimate control, property managers handle the day-to-day tasks that come with operating a rental property. For tenants, understanding who you’re dealing with can make your rental experience clearer and more manageable. If you’re a landlord, deciding whether to hire a property manager can free up your time and ensure your property is in expert hands.

If you’re a renter looking for a professional and experienced property manager to rent from in Portland, look no further than Rent Portland Homes Darla Andrew’s Office. We work with landlords in the Portland metro area, providing the best service to our clients and our tenants alike. We like to think that we bring the best of landlords and property managers together in one complete package. To learn more about our services or hear about our open properties, give us a call at (503) 515-3170.