The term property management refers to the monitoring, collecting, paying, and managing all obligations associated with the lease of real property. All the activities that property managers and lease officers perform, such as collecting rental payments, delivering notice related to repairs or renovations, collecting rents, collecting late fees and interests, dealing with complaints, and handling any emergencies, are part of property management. It does not include owning the land or real property itself. However, property management companies usually own or manage several parcels of land throughout a complex geographical location.
There are various classifications of property managers, and their responsibilities vary according to the type of property management company they work for. Most residential Property Managers are responsible for managing the rental property owners’ accounts, collecting rents, collecting late fees and penalties, and collecting outstanding debts from tenants. They also act as a fiduciary for the landlord and hold the landlords’ cards. Property management companies may also refer to leasing agents, property management companies, or landlord-leasing agents. The majority of them hire non-management staff or contractual employees to handle the duties related to their contract.
Property managers are generally employed by the management companies and work under their contractual agreements. Residential property managers may also be self-employed, although it is much more common for them to be contracted by large, well-known landlords. The majority of contracts for residential managers usually specify the duties and responsibilities of the property managers. Property managers usually handle the day to day tasks such as collecting rent, collecting late fees and penalties, delivering the rental forms to tenants, sending greeting cards and bills, paying bills, advertising the properties, maintaining the property, and sometimes even managing the inventory. Property managers may also participate in auctions to sell the items that tenants no longer need.
On the other hand, residential property managers that manage a group of properties may perform the roles of general manager, director of operations, or supervisor. They are the ones who decide how to make budgets, set the rules and policies, set the rules and regulations related to repairs and maintenance, purchase needed equipment, perform the screening and negotiation for better deals with the tenants, maintain and develop a written maintenance contract with the tenants, perform marketing analysis for repairs and renovations, perform contract supervision, oversee and report any changes that have taken place to the property or the tenant’s accounts. Property managers may also engage in negotiations with the tenant on behalf of the landlord.
The main functions of the property managers include receiving applications or leasing proposals from tenants, doing background checks on the prospective tenants, contacting candidates, interviewing or speaking to them, reviewing and approving repairs, inspecting the premises, preparing financial statements, paying and collecting rents, collecting deposits and profits, selling property, developing plans for future developments, making necessary upgrades in the property and closing the deal. The role of the manager is to act as the middleman between the landlord and tenant. The landlord pays the manager a percentage of the total rent that is collected. The manager may not receive any up front cash; however, the amount he receives is based on the performance of his tenants. The main objective of a property manager is to maximize the revenue that he receives as well as minimize his expenses.
Property managers are usually paid on a contractual basis. There are many property managers out there, but only a few who are really successful. A good manager should have the capability of improving the bottom line of the business without necessarily increasing the cost of operations. Property management companies usually charge rent for their services and then make their money back from the tenants who maintain a good relationship with them.
For landlords, it is important that their tenants pay their rent on time. Property management companies can help landlords handle all the tedious works such as collecting rent, repairing damages, and scheduling future renovations. In order to succeed as a landlord, it is important that you hire the services of a qualified property manager who has the capacity to maximize profitability while minimizing your expenses. If you are still confused about how a property manager will be beneficial for your business, you can find out more about this by checking online or visiting your local real estate agency.