Should I rent from a landlord or a property manager?

If you rent your home, chances are you’re paying rent to a landlord or property manager. But do you know how they’re different or what their responsibilities are? When you’re getting ready to move, it helps to know the difference between a landlord and a property manager to decide which option suits you and your family.

General differences between a landlord vs. a property manager

Usually, property managers take care of rental homes and apartment buildings, while landlords own the property. In some cases, property owners and landlords may not play a large role in attending to tenants’ needs. Property managers are typically more “hands on” with tenants. They handle everything from screening tenants, managing rental applications and defining rental costs to handling tenant issues and complaints.

What’s the difference between a property owner and a landlord?

A property owner is anyone who owns a rental property. They may live far away and just collect rent as an investment. A landlord is the owner of a property. This term usually means someone who manages the property and works with tenants.

So, all landlords are property owners, but not all property owners act as landlords. Some property owners hire a property manager to take care of their rentals. Some people manage the property themselves and call themselves landlords.

Responsibilities of a landlord vs. a property manager

Landlords are both property owners and managers of the property. They’re more directly involved than owners in the day-to-day operations of the rental. However, they may outsource some of their duties, including your point of contact, to others. Tenant relations with landlords are usually less formal.

Here’s a list of responsibilities landlords typically perform:

• Lease management and enforcement
• Show rental to prospective tenants
• Collect rent
• Perform repairs or outsource the job
• May be more willing to negotiate on rental price vs. property owners

Both the landlord and the property manager may perform duties in and around the rental property. The owner or landlord often hires a property manager. They handle daily operations.

Here’s a quick review of the duties managers perform when you're renting from a property management company:

• Prepare vacant units for the next tenant
• Define price for the rental
• Vet, screen and approve prospective tenants
• Advertise the rental property
• Create the lease and enforce the terms of the agreement
• Collect rent
• Handle tenant issues, repairs and complaints
• Act as groundskeepers of the rental property and shared spaces
• Manage employees on-premises
• Manage move-ins, move-outs and evictions
• Attend to the business of the property, including tax preparations
• Ensure the property stays in compliance with local, state and municipal codes
• Archive records and develop reports for rental property owners

How the renting experience differs with a landlord or property manager

You might equate landlords to an Airbnb owner, whereas property managers are more aligned with hotel chain administrators. If you have rented an Airbnb, you likely remember the owner helping you settle in. They might have shared tips about local attractions and checked in to see if everything was okay.

Property managers, on the other hand, usually focus solely on business. They might not have time or be able to give personal recommendations about the area like some landlords do.

Lease terms

Landlords will typically be more open to adjusting terms in your lease agreement than property managers. If you need some wiggle room around a move-in date, a landlord may be more willing to prorate your first month's rent.

Property managers are decidedly stricter with adhering to your lease's terms. In this case, you will probably need to pay the full month’s rent. This is true even if you do not live there for the entire 30 days.

Costs

Late fees and other costs are important to think about when renting from a property management company. Suppose you've got a good working relationship with your landlord, and you inform them that rent will be several days late. They may be willing to waive the late fee. But property managers are usually more business-like in their dealings with tenants.

Because of the typically informal way tenants interact with landlords, the relationship can become more personal over time. For instance, you may be able to negotiate financial terms or other clauses in your lease. For example, if the lease says tenants must pay an extra security deposit for pets that weigh more than 50 pounds. If you are short on cash and need a few months to save for a pet deposit, a landlord might give you more time than usual.

Maintenance requests

Getting work requests completed in a timely manner is usually an advantage of those renting from property managers. Their business model typically requires a prompt resolution to maintenance issues. If your dishwasher stops working, tell your property manager. You might get a ticket number and an appointment for maintenance to come and check it.

When you rent a property, the landlord might be busy. This could mean they can't come to your place for a few days. Or they may not be able to replace broken appliances immediately. That can cause major inconveniences if you live somewhere with 90-degree summers and the AC isn’t working. Or if you rely on your stove for cooking but your landlord is taking her time to replace it.

Interactions

Expect more professionalism from property managers than individual landlords. If you prefer a hands-on, personal experience, renting from a landlord may suit you better. Property management companies tend to be less social and more businesslike, focusing on efficient service rather than building relationships.

If repair issues arise, landlords are solely responsible and resolution may depend on their responsiveness. Property management companies typically provide formal channels to escalate unresolved problems.

When dealing with a landlord, communicate directly and consider speaking with current tenants about their experiences before signing a lease.

The relationship between property manager vs. landlord

Renting from a property management company is a smart choice if you travel often. It offers a more professional rental experience. However, if you’re a people person, you may enjoy the more nuanced relationship that landlords typically offer.

It all depends on your personal preference. Since everyone is different, the best way to decide is to meet some property management groups and landlords. Choose the one that works best for you.

Should you rent from a property manager or a landlord?

Although personal preferences will weigh heavily into your thought process, it may be wise to consider your wants and needs first. Before renting from either a property management company or a landlord, it's key to make the right call. To help you weigh out your options, we’ve put together a list of pros and cons for each:

Pros of renting from a landlord

• Greater financial flexibility
• More personal relationship
• Custom lease agreements are more likely
• Decreased rental costs due to lack of property management firm fees

Cons of renting from a landlord

• May have limited funds for repairs
• Delays in repairs may occur if they’re busy with other attentions
• Booking a handyman can sometimes take weeks
• Less likely to offer one month’s free rent when signing on

Pros of renting from a property management company

• Professional staff typically on site to handle issues and repairs
• Prompt attention to concerns
• Great for those looking for a business-type relationship with their rental group
• Typically, well-funded and insured
• Incentivized sign-on bonuses like one month’s free rent more likely
• Perks may be available such as an exercise room, pool and community gathering area

Cons of renting from a property management company

• Higher rent due to fees for rental management group
• Application fees typically apply
• Decreased financial flexibility
• Stricter rules and fine enforcement procedures

Protect your apartment with renters insurance

Whether you choose to rent from a landlord or a property manager, be sure to carefully protect the things you own first. Check in with your American Family Insurance agent and request a customized renters quote today. You’ll have the protection you need and find real peace of mind with great coverage.

This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information.