Property management pertains to the processes applied to maximize returns by effective administration of property—one of the major assets of most organizations. It also comprises the disciplines implemented on property rules and rental policies.
Property Management is a career profession that is a part of our growing business industry. A property manager’s employment can either be directly under the supervision of a real estate property owner, or for a property management company, hired by an owner or legal entity to look after the real estate over a particular span of time.
A property management company is tasked with the responsibility of managing the multiple aspects which come along with the ownership of real estate. This is akin to the role of management in any business.
One of the important roles property management companies play is that of acting as liaison between the landlord and tenant. Their duties include posing appropriate gross rent, accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants.
In exchange for the service provided, property management companies charge landlords a percentage of the gross rent collected each month, in addition to lease commissions.
In addition to managing income and expense related activity, property managers may also manage construction, development, repair and maintenance on a property. The direction of repair and maintenance is quite a large part of a property manager's function.
Property managers should develop a relationship with the management company, property owner and tenants that is based on a mutual trust and complete confidence in one another. His alliance with tenants gives an advantage to the landlord and provides them the necessary buffer servicing their desire to profit and distance themselves from their tenant constituency.
There are many aspects to this profession, including participating in and/or initiating litigation with tenants, contractors and insurance agencies. Litigation alone is at times considered an entirely separate function, set aside for trained attorneys. Although a person or persons will be responsible for this in their job description, there may or may not be an attorney working under a property manager.
Special attention is given to Landlord/Tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with new laws and practices in their given localities, cities and states.
Excellent property management can only achieved by top-notch managers. To be the best in this field, one must know and stay updated on local ordinances and state laws; be highly honest and ethical in enforcing property rules and rental policies; be detail oriented and organized with paper works; have good communication and computer skills; like working with the public; have a strong sense of duty and commitment; and be an exceptional follow-up person.