Property Management Blog

What does a property management company do?

by Property Management Direct on Tuesday, January 10, 2012 12:15 AM
A property management company is responsible for maximizing the return on real estate investments. The company acts in the best interests of the property owner. They maintain the property and keep it occupied. Not only that, but they also collect rent and store records. There are four areas that a property owner should expect in return for their expenses. These areas include: marketing, occupancy, facility and administration.

The property manager must have knowledge about the real estate market. They need to know about competitive rental properties. Since they are responsible for marketing the home, they need to use special promotions and advertising strategies. Good property managers will maximize occupancy and rental rates. The manager is an expert when it comes to operating expenses and budgets. They use the current market to set an appropriate rental rate. The manager will have experience with financial statements and income taxes. All of their financial information is reported back to the property owner.

Once the property management company finds a tenant, they must work to keep the place occupied. The management company takes care of tenant requests. If a resident has a problem, the management company attempts to fix the issue. Besides that, they also monitor lease requirements and collect rent. If a tenant is not paying their rent, the management company takes care of the eviction process. They even assess satisfaction with the property’s amenities. The manager can find out if competing rental properties have better facilities.

When dealing with facility management, the property manager must maintain the structure of the building. If there is an electrical issue, the manager will hire an electrician. The management company is required to monitor the quality of repairs. They have a budget with specific expenditures that they are required to follow. Along with that, the manager must also maintain outdoor areas. For instance, they will hire a gardener to take care of the plants. A building that has been cared for has a better tenant retention rate.

The final thing that a property management company must do involves administration work. They are required to keep records of everything that takes place. They must keep meticulous records for accounting and tax purposes. This is also essential for liability reasons. All tenant interactions must be recorded by the manager. In fact, many states have specific real estate property laws for the management company to follow.



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3 comment(s) so far...

Anonymous 1/27/2012

Its important that they keep the house fully up together and that all of the correct fixtures and fittings are in place. Everything must be fully maintained and damage must be attended to as soon as possible.

Anonymous 1/31/2012

It is a good idea to make sure that the property management company you are using has bonded and insured contractors for repair work. It's best to have a management company that does regular inspections of your home, preferably using either video or still photos. A good property management company is also able to screen for criminal background, employment history, credit rating, any past evictions, etc. Proper screenings will lower your eviction rate.

Anonymous 8/21/2012

Its a really wide area, but at the very least, the PM must be capable of handling every type of tenant situation and have authorized, skilled service providers. Your insurance could be invalid if you willingly let amatuers work on your proeprty & it burns down due to poor quality wiring for example.In Romania, all this is relatively new & unexplored turf. Damian Galvin on Google+   Property Management Direct on Facebook  Property Management Direct on Twitter Property Management Direct on YouTube   Property Management Direct on LinkedIn