Property Management Blog

Property Management 101

by Property Management Direct on Friday, January 27, 2012 1:51 AM
Property management can be defined as the leasing, managing, marketing and maintaining of real estate property that is owned by another party.  Most often times in the property management industry these responsibilities are handled by a certified property management company.  Property management companies work to facilitate the relationship between property managers, property owners, and tenants to ensure that all aspects of managing, leasing, and maintaining a property are covered. 

Property owners are the primary benefactors of the services of a property management company.  The property owner benefits by being alleviated from the stress that can be brought on by the complexities of playing landlord in a full time capacity.  Most seasoned landlords have learned through experience that property management is a time consuming task that is more complex than merely insuring, listing and periodically maintaining a rental property.   In most property management cases, a landlord need be fluent in handling the legalities tied to renting and leasing a real estate property, have the wherewithal to list, screen, and approve tenant rental applications, and be available 24/7 to any tenant demands or property issues so that they may be dealt with accordingly. When a property owner neither has the time nor the skills to become a full time landlord, the property owner turns the responsibility of property management over to a professional property management company to handle the intricacies of property management on their behalf to ensure that the tenants and the property are well taken care of.

Of course property management companies don’t manage real estate property out of the goodness of their hearts, but do so in exchange for a reasonable fee that is deducted from the overall rent.  That fee goes to cover the services that a property management company provides to a property owner.  One of the most important of those services is making sure that the rental property does not sit vacant but that it is always occupied by qualified tenants.  Because the amount of compensation that a property management company can draw upon is tied directly to the rent that is being received, the best interest of the property management company is aligned naturally to that of a property owner, making it a focal point for both to ensure that the property is generating sufficient cash flows from happy tenants that are occupying the dwelling at all times.  As a result, property management companies have developed rigorous screening processes for all potential tenants that include at the very least a background check, a credit check, and an evaluation of the tenant’s rental history.  A good property management company will have a thorough evaluation process in place for any and all tenants that desire to rent property and will make it a priority to protect the property owner from unqualified tenants that are unfit to pay their monthly rental obligation.

In addition to screening tenants and ensuring that the property is occupied, a property management company will also handle all legal documentation that is required to comply with government regulations and the Fair Housing Act.  Property management companies deliver added value by assessing the current rental marketplace to make sure that a fair rent value is being placed on the property, take over responsibility of maintenance and repair, handle any inspections that may need to take place on site, enforce rent collection from tenants, and take responsibility over all advertising and marketing that is required to attract and retain tenants.  

Thoughts or comments on anything we may have left out?  Please feel free to leave your feedback below and we are happy to help in providing you with more information to all of your property management questions.

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Property Management Direct

Here we discuss Residential, Commercial, Multifamily, Resort and Association Property Management. Learn more about how to choose a property management company to manage your property, tips on how to get more out of your property, investing tips and more.

10 comment(s) so far...

Anonymous 2/27/2012

Whether your property is part of a high rise condominium or a suburban single family home development, a poorly managed building and premises can ensure that even the most promising asset will fail to meet the expectations of its owner. Hiring a professional property manager can help you navigate through these issues and make sure your property gives you the return on investment you are looking for.

 
Anonymous 4/30/2012

successfully manage a house, tenant selection, screening, as well as rent collections and property maintenance are key issues. Most often times in the property management industry these responsibilities are handled by a certified property management company. So you have evaluated price, experience, and accounting reports, the key decision factor will be the level of trust you have in the management team of the company that will be taking care of your property. Property Management Specialists

 
Anonymous 6/11/2012

Property manager can help to get best property management leads and they can also provide best value of your property. As they are certified members of a real estate society and various association they can provide tremendous information regarding various properties.

 
Anonymous 6/21/2012

I manage and own many properties. I also live out of state of many of the properties I own. Each property of mine is ran by different property managers. They use an online system to help them run the property easily and efficiently. www.PayRentChex.com provides me and as well as my managers automatic email reminders and late fee notices to my residents. I am collecting more late fees because the system helped take out the personal feelings between the resident and manager.

 
Anonymous 8/8/2012

Nice Blog!!

 
Anonymous 8/27/2012

What are the services of your Property Management Firm? Please make a note on that.

 
Anonymous 8/27/2012

You have shared wonderful blog about property management. I am also searching this kind of blog for some time.

 
Anonymous 8/28/2012

Your blog is very useful and helpful for me. I have got complete knowledge about this field.

 
Anonymous 8/28/2012

It’s great discussion on property management and its techniques. I find it very interesting.

 
Patrick Rogers 11/2/2012

Great blog post on the benefits of a property management company. Very thorough.

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