Landlord vs property manager: Understanding the difference

What is a landlord?

A landlord is the owner of a property. Landlords can be individuals managing a single home or unit, investors with multiple properties, or even companies that own large apartment complexes.
 

Typical responsibilities of a landlord

• Setting prices and lease terms
   
• Screening applicants
   
• Handling maintenance requests
   
• Collecting rent and enforcing lease agreements
   
• Managing property-related expenses, such as taxes and insurance

Because landlords directly own the property, they typically bear the financial risks and rewards associated with real estate investment. While some landlords prefer a more active role, like personally handling property upkeep, many opt to hire a property management company to handle day-to-day responsibilities, reducing their workload and risk.
 

What is a property manager?

A professional property management company like FirstService Residential is hired by the landlord to oversee day-to-day operations. Property managers handle leasing, maintenance, financial oversight, and compliance, supporting efficient operations and helping to maintain the value of the property.
 

Typical responsibilities of a property manager

• Compliance: Keeping track of ever-evolving regulations at the state or provincial level and addressing issues to help our clients remain in compliance.
   
• Financial management: Preparing budgets, setting and collecting dues, and providing insurance, investment, and lending guidance to optimize the financial health of your property or association.
   
• Maintenance: Ongoing maintenance for large equipment like elevators, HVAC systems, and fire systems, as well as smaller tasks such as painting and cleaning common areas.
   
• Staffing: Hiring and managing staff, from front desk attendants to chief engineers, depending on the property’s needs.
   
• Resident life: Handling resident inquiries, distributing important updates, and curating tailored lifestyle programming.
   
• Value-added services: Your management company of choice should offer value-added services for customized solutions tailored to your property’s needs. Properties managed by FirstService Residential have exclusive access to its affiliate FirstService Financial, which delivers best-in-class financial and insurance programs and services to protect and enhance the value of our clients’ properties through extensive buying power and potentially reduced interest rates.

A professional property management company like FirstService Residential can provide comprehensive management services, helping property owners optimize revenue, help mitigate risk, and enhance the lives of residents.
 

Differences between a landlord and a property manager

1. Ownership

   A landlord owns the property and assumes full financial and legal responsibility, meaning they directly handle investment risks, property taxes, and compliance issues. In contrast, a property manager does not own the property but acts on behalf of the landlord, supporting smooth operations and compliance with legal obligations.
    

2. Maintenance

   Landlords are ultimately responsible for property maintenance and repair costs. However, property managers can facilitate this work by coordinating with vendors, arranging preventive maintenance, and responding to service requests from residents. A property management company that has strong, long-held partnerships with quality service providers is often able to negotiate savings such as discounts on community purchases and lower rates on regular maintenance, while still maintaining a superior level of service.
    

3. Communication and resident relations

   Landlords who manage their own properties must communicate directly with residents, addressing lease agreements, rent collection, and service requests firsthand. Property managers, on the other hand, help handle all resident-related issues and reduce the need for landlords or building owners to be involved in daily operations. They serve as a point of contact for inquiries, complaints, or feedback to help residents resolve issues professionally and promptly. For example, our Customer Care team is a 24/7/365 call-in resource that provides immediate answers and information about our communities from highly trained, service-focused associates who listen and support our residents all day, every day.
    

4. Financial management

   Without a property manager, landlords are responsible for managing all financial aspects of their property, including operational costs, budgeting, and forecasting. Professional management companies help streamline financial management by creating and maintaining budgets, overseeing rent collection, and providing detailed financial reporting. Their expertise minimizes financial risks and supports compliance with accounting standards and legal regulations. We offer specialized financial services through our affiliate FirstService Financial, from guidance on budgets and reserves to securing competitive loan options. They help boards and owners make decisions that can benefit their property’s long-term health.
    

5. Compliance

   Landlords must navigate an increasingly complex regulatory landscape, including local building codes, fair housing laws, insurance requirements, and financial disclosures. Failing to comply with these regulations can result in fines, legal disputes, and difficulties in managing the property effectively. Professional property managers are often well-versed in state or provincial laws governing different types of properties, including fair housing regulations, eviction procedures, and safety requirements. We leverage best-in-class expertise through our affiliates, FirstService Financial, FirstService Energy, and FirstService Development Advisors. Their specialized knowledge and subject matter experts can help prevent these costly mistakes.

Can a landlord also be a property manager?

While a landlord can act as their own property manager, it’s rarely the best choice. Self-managing landlords must handle everything from leasing and rent collection to maintenance, legal compliance, and financial reporting — essentially working a full-time job without the support and efficiencies of a professional management company. Costly mistakes or operational inefficiencies can impact both the landlord’s bottom line and resident satisfaction.
 

Pros and cons of landlord-managed properties

Pros of landlord-managed properties

• Potential cost savings: Some landlords believe they could save money through self-management, but many landlords end up spending more due to inefficiencies, compliance missteps, and lost revenue from vacancies.
   
• Direct control: Landlords who also act as a property manager can make decisions without consulting an experienced partner. However, this also means being on-call 24/7 for maintenance, disputes, and emergencies without the expert guidance of a professional property manager.

Cons of landlord-managed properties

• Higher maintenance and repair costs: Without vendor relationships and bulk purchasing power, landlords often pay more for repairs and maintenance.
   
• Legal and financial risks: It can be challenging for busy landlords to stay up to date with ever-evolving housing, insurance, and financial regulations, which could lead to costly fines or legal action.
   
• Inconsistent operations: Without standardized policies and professional oversight from dedicated experts, delays and disputes may be more likely to occur. This can deter potential buyers and reduce property values over time.

Pros of property managers

• Long-term savings: Property managers like FirstService Residential can leverage the size of their portfolios to negotiate favorable terms with vendors, insurance carriers, and lenders.
   
• Expert oversight: Professional property managers with decades of experience serving every property type can offer expertise and solutions that anticipate your specific needs.
   
• Risk mitigation: At FirstService Residential, compliance with legal, financial, and safety regulations is managed proactively by experts who can help prevent costly violations.
   
• Enhanced resident satisfaction: With dedicated management, resident questions and requests can be handled quickly.

Cons of property managers

• Perceived loss of control: Landlords may worry about relinquishing decision-making power. However, a good property manager works in alignment with the owner’s goals, providing the expertise and resources to implement effective policies without eliminating landlord oversight.
   
• Not all property managers are the same: Some landlords may have had bad experiences with inexperienced or unresponsive managers. Choosing a trusted, well-established management company like FirstService Residential can help you protect property values and enhance resident life.

By partnering with FirstService Residential, landlords can help optimize revenue, aid in reducing risk, and enhance resident life, all without the stress of daily management responsibilities. To learn more about how property management services can benefit you, contact FirstService Residential today.