A good property manager will screen prospective renters and filter them according to rent history, background history and credit score. Keep in mind that each of those reports will cost money but may be worth it when placing someone in a real estate investment you own. The reason that the property manager will look into the rent history of the renter is to establish a consistent record of payment of rent, and maintaining the property. If a renter doesn't maintain the lawn or keep the house up as they should, that is important information for a property owner to have. The background history of an applicant is important because if they have a history of vandalism or some kinds of violent crime, the property owner has the right to decline their application. The credit score comes into play just as a character validation. If the applicant has the history of keeping up their bills their credit report will indicate that.
A good property manager will may also prevent the homeowner from getting sued. There are many laws surrounding rental rights and they range from race discrimination all the way to not accommodating the handicapped. lawsuits generally arise from a lack of communication by either party and property managers are bound to keep up on the laws and regulations in that industry. As a property own, you may not like the fact that the person works as a bouncer at a strip club, but the law says you cannot discriminate based on their source of employment, as long as it is regular.
Property manager's also have significant experience in dealing with renters and may know how to negotiate the property owner out of a tight situation. An example of this, in one of my rentals I had mold develop within the walls. The renters found out about it and immediately started going to the hospital and requested that I pay their medical bills. My property manager contacted them and said that since they had not paid their rent, they should take this months rent and find a safer place to live. This allowed me to have my rental vacated, so I could do the repairs, without putting my renters in an unhealthy situation. As a property owner I may have never considered this option and simply paid the hospital bills without reaching a point of resolution before it was too late.
Property managers essentially function as a protective layer between the property owner and the renter. If the renter can get directly to you, the potential to manipulate you increases tremendously. With the property manager as a buffer, none of the excuses and traumatic events get to anyone who will bow under the pressure. It may sound heartless, but they really can save your bacon, as well as your wallet.
[expert=Gavin_King]
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