Property management is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition. This is much akin to the role of management in any business.
Property management is also the management of personal property, equipment, tooling, and physical capital assets that are acquired and used to build, repair, and maintain end item deliverables. Property management involves the processes, systems, and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.
Roles
One important role is that of liaison between the landlord and/or the management firm operating on the landlord's behalf and tenant. Duties of property management generally will include a minimum of these basic primary tasks:
- The full and proper screening or testing of an applicant's credit, criminal history, rental history and ability to pay.
- Lease contracting or accepting rent using legal documents approved for the area in which the property is located.
- Mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.
- Maintaining necessary records for tax and legal purposes.
- Managing, reporting, and paying any and all taxes and/or assessments involving the property.
- Overseeing necessary repairs and maintenance arising from normal wear and tear.
- Providing or overseeing provision of janitorial services.
- Tenant Move In
- Tenant Move Out
- Evictions
- Marketing and financial
- Market the property
- Prepare necessary documents for tenant placement
- Collecting deposits, rents, and any other fees that are due
- Financial reporting on a regular basis
- Providing annual reports, tax reports and any other financial reports that are needed
- Property Maintenance
- Provide and oversee an in-house maintenance crew
- Establish a preventative maintenance program
- Establish and maintain relationships with outside contractors for larger jobs
- Provide an emergency 24/7 maintenance service
- Tenant Relations
- Provide a 24/7 emergency phone number
- Handle all tenant complaints, requests, and inquiries
- Provide a website for tenants to pay rent and submit maintenance requests
- Conduct regular property inspections
- Legal
- Understand and abide by all local, state and federal laws
- Understand and abide by the terms of the lease agreement
- File evictions and attend court hearings if needed
- Risk Management
- Manage risks of owning rental property
- Make sure the property is safe and habitable
- Purchase insurance
- Property Management Software
- Provide and maintain property management software
- Provide online access to owners and tenants
- Provide regular reports to owners
- Real Estate Management
- Maintain and manage the property
- Keep the property in good condition
- Ensure that the property complies with all local, state and federal laws
- Develop and implement a long-term maintenance plan
- Conduct regular property inspections
- Oversee any renovations or upgrades to the property
- Monitor and adjust rental rates to stay competitive in the market
- Develop and implement marketing strategies to attract and retain tenants
- Negotiate and renew lease agreements
- Handle any legal issues related to the property
- Provide regular financial reports to the property owner
- Manage and maintain relationships with tenants, vendors, and contractors
- Keep up-to-date with industry trends and best practices
Benefits
Property management can provide numerous benefits for property owners, including:
- Time and stress management: Property management companies handle all aspects of managing a property, from finding and screening tenants to handling maintenance and repairs. This frees up the property owner's time and relieves them of the stress and responsibilities of managing the property themselves.
- Marketing and tenant placement: Property management companies have the resources and expertise to effectively market a property and find qualified tenants. They also handle all aspects of tenant placement,
