The terms “landlord” vs “property manager” are often used interchangeably, but the differences are significant. When things go sideways, it’s usually the landlord who shoulders the blame, even if a property manager is in charge.
In this article, we’ll break down the differences that matter most between landlords and property managers. We’ll cover their roles, daily responsibilities, and legal obligations, all while exploring who handles what duties regarding a rental property.
And, in the end, we’ll help you decide between being an independent landlord and automating your rental operation with property management software, or hiring a flesh-and-bones property manager.
A landlord is the legal owner of a rental property. They hold the title and make the final decisions about the property, even if they’ve hired a property manager to handle daily operations and tenant communication on their behalf.
Because their name is on the deed, the landlord also assumes legal responsibility for ensuring fair housing compliance, maintaining habitability standards, and handling security deposits.
Landlords assume legal, financial, and day-to-day responsibilities that require consistent involvement. While owning rental property can build long-term wealth, it is rarely a passive endeavor. Tenants expect timely repairs and clear communication from their landlord. Typical landlord duties include:
Maintaining a habitable property: Landlords must keep rentals safe and livable at all times, which includes providing reliable heating in winter, ensuring that plumbing and electricity operate without issue, and preventing mold and pest issues. State habitability standards vary, but even with a property manager, the landlord remains legally responsible for ensuring they’re upheld.
Following landlord-tenant laws: Landlords must comply with local, state, and federal landlord-tenant laws that cover fair housing, lease enforcement, security deposits, notice requirements, and other relevant regulations. Failing to comply with these laws (or not knowing them) can lead to serious legal and financial ramifications.
Managing finances: Landlords oversee the rental’s finances, from setting rent to paying property taxes, insurance premiums, and maintenance fees. While property managers or CPAs may handle some financial tasks, the dollars and cents ultimately go through the landlord, making accurate bookkeeping and accounting critical.
Handling repairs and maintenance: Whether landlords self-manage or hire a property manager, they must promptly handle repairs and routine upkeep. (Doing so goes hand in hand with habitability laws.) Few things create unhappy tenants faster than ignoring a clogged toilet, a broken fridge, or a leaky roof.
Screening and approving tenants: Property owners decide which applicant is best suited to rent their units by reviewing rental applications, checking credit and background reports, and selecting qualified tenants.
A property manager is a hired third party that operates a rental property on behalf of the landlord. They handle day-to-day tasks, such as tenant screening, lease signing, and maintenance coordination, creating a buffer between the landlord and the ongoing needs of their rental property.
Tenants often interact with the property manager, but it is essential to understand whether the landlord or a management company oversees the property. With that in mind, no matter who handles the day-to-day operations, legal responsibility almost always rests with the landlord.
Property managers take on a wide range of responsibilities on behalf of the landlord, including:
Advertising and filling vacancies: Property managers often create property listings, schedule showings, and screen applicants. Finding good tenants is half the battle of real estate investing, after all, so property managers can help secure upstanding, long-term tenants for the landlord.
Collecting rent and enforcing leases: Rent collection, chasing down late payments, and ensuring tenants follow their lease terms all fall under a property manager’s purview. In the event a tenant stops paying rent or breaches the lease agreement, the landlord can instruct the manager to initiate the eviction process on their behalf.
Coordinating maintenance and repairs: Property managers respond to repair requests, compare quotes from contractors, and ensure jobs get completed quickly and efficiently. Their priority is to keep tenants safe and comfortable while staying within the landlord’s budget.
Managing tenant communication: Property managers serve as the main point of contact for tenant questions, concerns, and day-to-day issues. Clear, consistent communication helps prevent frustration and stops minor problems from escalating into bigger ones.
Handling inspections and reporting: Managers handle move-in and move-out inspections by documenting the property’s condition with notes, photos, and videos. They also check in regularly with landlords to keep them informed about the condition of their rental property.
Landlords and property managers often work as a team, but they naturally assume different roles and levels of authority. When problems arise involving money, tenants, or maintenance, those differences directly affect how each issue gets addressed.
Landlords own the property and assume all financial risk. Property managers don’t typically have an ownership stake. Instead, they handle daily operations on the owner’s behalf, usually for a monthly fee or a percentage (up to 12%) of the monthly rent payment.
Property managers focus on day-to-day tasks, such as addressing tenant needs and maintaining unit occupancy. Landlords, on the other hand, focus on building equity, managing finances, and protecting the property’s long-term value. When both parties work in unison, everyone wins (tenants included).
Landlords make the final call on major issues such as lease terms, evictions, rent increases, or capital improvements. While property managers can help carry out those decisions, they can’t override them without the landlord’s approval (unless specified in their agreement).
Property managers may act independently on minor tasks, such as scheduling repairs or handling routine maintenance, but they typically follow clear protocols established by the landlord. When decisions carry legal or financial consequences, landlords expect to have the final say before the property manager takes action.
Landlords bear legal liability for their rental properties, even when a property manager handles daily operations and tenant interactions. Legal responsibility encompasses compliance with fair housing laws, security deposit disputes, and other obligations directly related to ownership.
If a property manager mishandles a situation, such as failing to address a tenant’s complaint or mismanaging funds, the landlord is likely the one held liable. As such, selecting the right property manager is paramount for landlords who want to protect their investments.
Independent landlords enjoy more control and pocket a higher percentage of rental income but also take on responsibility for any issues that arise. Here are a few benefits of being an independent landlord:
Independent landlords often make their own calls on lease terms, tenant selection, rent prices, and maintenance priorities. Without a manager involved, they can run the property exactly as they see fit, even if it means more work on their plate to keep the wheels turning.
Landlords who manage solo avoid paying service fees or a percentage of rent to a property manager. Holding onto more income can accelerate portfolio growth for sweat equity landlords, although doing so often comes at the expense of lost free time.
Managing a property directly helps landlords build stronger relationships with their tenants. Knowing the landlord, shaking their hand, and hearing their voice can go a long way, especially compared to the more impersonal, one-size-fits-all approach of some property management companies.
Managing a rental property alone means taking on more responsibility, spending more time on the day-to-day, and becoming more vulnerable to legal and financial risks. Disadvantages of being an independent landlord include:
Independent landlords handle everything on their own, from screening tenants and collecting rent to making repairs and managing finances. The work can pile up quickly (especially when multiple tenants need help at once), and being independent can feel like you’re always on the clock. That’s why many turn to software to lighten the load and make independent landlording much less time-consuming.
Without guidance from trained professionals, landlords can make costly mistakes. Missteps with fair housing laws, lease enforcement, or security deposits can lead to legal or financial troubles that can prove detrimental.
Independent landlords must handle complaints, disputes, and emergencies on their own, often during inconvenient hours, holidays, or weekends. Without a property manager to step in, setting boundaries between personal life and landlording can feel daunting.
Hiring a property manager takes daily tasks off the landlord’s plate and brings professional experience to complex situations. Hiring a property manager comes with numerous benefits, including:
A property manager handles tedious tasks like marketing properties, coordinating maintenance, and communicating with tenants, allowing landlords to focus on priorities outside of their rentals. The arrangement works especially well for those juggling full-time jobs and multiple rental properties.
Remember when we discussed how independent landlords have no buffer? Property managers serve as that buffer. They handle complaints, enforce lease terms, and step in during disputes, helping protect landlords from late-night calls.
Professional property managers stay on top of the nitty gritty: fair housing laws, lease regulations, and notice requirements. They help prevent legal mistakes and ensure key deadlines and paperwork aren’t forgotten or mishandled.
Working with a property manager adds cost and reduces control, which may not suit every landlord, especially those with just one or two units. The downsides of hiring a property manager include:
Most property managers charge a fee of between 8% and 12% of rent, plus leasing costs and potential maintenance surcharges. For landlords with tight budgets, these costs eat into profits and reduce their funds that could pay for property upgrades, new investments, or expanding their portfolio.
Hiring a property manager means trusting someone to act on your behalf, which can create a disconnect. Even with clear expectations, the property manager’s execution may not always align with the landlord’s goals. Regular and open communication is critical; hiring a property manager adds another layer of complexity to the communication process.
Property managers are a mixed bag. A poorly chosen company might botch repairs, mismanage funds, or fracture tenant relationships. Since landlords remain legally and financially responsible, vetting and hiring the right property manager is essential to running a tight ship.
Understanding the differences between a landlord vs. a property manager might seem simple, but there are subtle nuances to understand. Knowing who is responsible for what sets clear expectations and helps prevent messy situations for both landlords and tenants.
For landlords, deciding whether to go solo, hire a property management company, adopt a hybrid approach, or automate their tasks with software is a crucial decision that should never be taken lightly.
TurboTenant’s property management software enables landlords to avoid the high fees associated with a full-time property manager by centralizing their operations, streamlining essential duties, and maintaining everything organized and secure.
With TurboTenant, landlords can create legally sound lease agreements, screen tenants and collect rent for free, track expenses, automate maintenance requests, and more, all from one easy-to-use platform.
Create a free TurboTenant account today to simplify rental management without paying the high recurring fees of a property manager.
Whether it’s better to rent from an owner or a property manager depends on what the tenant values most. Renting from an owner may offer more flexibility and a personal approach, while property managers often provide quicker responses and more structured processes.
Yes, a landlord can also take on the role of property manager. Many independent landlords opt to manage their rentals, handling tasks such as tenant screening and rental marketing, particularly if they have only one or two units and want to avoid additional costs.
Depending on your situation, it may not be. If you manage just a couple of properties, it might not be worth it to hire a property manager. If you prefer to be completely hands-off, then the cost may make it worthwhile for you.
Property managers typically earn between 8% and 12% of the monthly rent as their fee. Many also charge for leasing, lease renewals, or add markups to maintenance costs, which can raise the overall expense depending on the agreement and property needs.
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