Property management is the administration, supervision, care, and control of real estate property. This would include a property with a physical structure such as apartment complexes, condos, or other types of housing that require property management services. It also provides for the maintenance of the property and its structure, focusing on its condition and usability. Property Management refers to the care of the property in real estate terms. Making the property more attractive and worth putting up for rent or sale.
The term real estate is broad and covers a wide area of responsibility. There are several sub-topics under this umbrella, including developing housing facilities, including building housing projects, property management; rental property management; real foreclosure estate; and zoning regulations for various projects and areas. There are many areas and sub-areas under the umbrella of real estate management, including property management, tenants’ tenant relations, financial and accounting matters, assurance programs, marketing and promotion, leasing and rental, government matters, and internal controls. These categories of real estate management are essential, each dealing with its own set of unique issues and concerns.
Residential property management deals with residential real estate. It involves the administration of property owned by individual families and individuals, including apartment complexes, condominiums, townhouses, mobile homes, duplexes, rowhouses, and so forth. The main concerns of residential property management include determining appropriate tenants, doing necessary repairs and replacements, collecting rents, maintaining the building, decorating the buildings, staging the property for sale or lease, scheduling tenants, collecting information concerning property management, maintaining the financial books, and handling problems involving long-term contracts with tenants. The residential property management company also takes care of all building maintenance and related tasks. In the case of apartment complexes and condominiums, the association managers are responsible for such things as maintenance of elevators, foyer, elevators, parking meters, emergency signs, and signals, repairing escalators, repairing elevators, and repairing doors, windows, escalators, ramps, porches and exterior doors. In the case of apartment buildings and condominiums, the association managers oversee the cleaning of hallways and sidewalks, maintaining interior lighting, fixing kitchen appliance units, repairing water pipes and replacing knobs, handles, drawer pulls, doorknobs, and handles, preparing surfaces for paint, cleaning carpets and draperies, repairing window and door trim, and maintaining interior finishes.
Real estate managers also deal with commercial properties. This includes the management of apartment complexes, office buildings, hotels, shopping centers, strip malls, hotels, motels, warehouses, buildings containing restaurants, and other retail stores. The real estate management services for commercial properties include:
- Managing the building’s plumbing system.
- Securing permits for facilities in the building.
- Controlling damages.
- Scheduling routine maintenance.
- Inspecting and repairing equipment.
- Handling accounts payable and receivable.
- Preparing the financial books.
- Preparing the inventory report.
- Performing advertising campaigns and promotional activities.
- Collecting rent.
- Collecting monthly dues and collecting late payments.
The duties of property management staff vary according to the size and scope of the property management responsibilities. For instance, property management services for large apartment complexes may include maintaining a fleet of taxis and shuttle buses, installing controlled entrance cards for tenants, performing unannounced site inspections, collecting security and surveillance equipment, and maintaining communication links the management team.
When choosing a property management service, it is essential to understand the fees associated with the services. Some property management companies charge a per-day fee for emergency services or maintenance tasks; others charge a flat monthly fee that includes utilities. Some property management companies charge a performance bond, a one-time fee paid to the property manager before termination for nonperformance. Other prices may be based on the number of employees employed and the number of tenants residing in the complex. All fees should be clearly defined in the contract.
Property managers offer marketing strategies. Property managers can use various advertising and marketing techniques, including flyers, advertisements in newspapers and online, posting signs in areas frequented by potential tenants, maintaining websites and newsletters, conducting open houses, conducting interviews with news reporters and media personalities attending conferences and seminars. Property managers can also market through community involvement and charitable fundraising. For example, a property management company might help a single mother buy a house after divorcing her husband, and she needs financial assistance to make the down payment on the new home. In this case, the property management company would provide the loan and pay for the down payment and the monthly payments.
Property management companies can help individuals and families search for real estate by providing access to information. They can assist with finding appropriate real estate agents and locating suitable rental property for each individual. Some property management companies offer tenant screening services and help individuals find convenient rentals on their own. Tenants can contact real estate agents for assistance with locating a home.
A property manager or landlord has many responsibilities, such as developing an affordable rental agreement, collecting rents, performing inventory checks, maintaining property cleanliness, repairing damage and malfunctioning appliances, and repairing landscaping. The management company can help tenants in making decisions about whether to rent a unit or not. In terms of advertising, property managers can post signs in high-traffic areas, mail brochures to prospective tenants, hold open houses, sponsor community events and work with other real estate agencies to advertise vacancies. A property manager is responsible for approving leases, collecting rents, collecting security deposits, and arranging for alternate accommodation for tenants. A property management company can also advise tenants and landlords and help them obtain their housing permits. Finally, they can represent and collect rents, negotiate with owners to reach the best rental agreement, and close the deal on behalf of the tenant.