Property management involves managing, controlling and dealing with the real estate. It indicates the need to monitor, care and account for the affairs involving real estate. The management role in any business deals with managing personal property, tools and equipment. The property manager undertakes the responsibility of acquiring, controlling, caring and maintaining and using this property. Hence, property management includes all the processes, tools, methods and human resources needed to manage the well-being of the property.
As an example, a company dealing with property management will do the advertisement of the property to be rented, manage queries and inquiries, inspect the applicants to choose proper candidate, manage lease agreements and collect rents. The company will deal with maintenance problems, provide financial statements and further information related to property to the owners. Property managers will then receive payment from the owners.
Property manager deals with setting, adjusting and collecting rents. They handle leases, emergencies and move outs. They are also responsible to find, screen and evaluate tenants. They also manage eviction in case an owner fails to pay rent or go against the lease agreement. They can also file for taxes.
Property management companies are hired by owners for a number of reasons. Owners may have a large amount of rental properties but they may not find enough time, effort or resources to maintain this property and manage tenants. There are some property owners who are only interested in getting profits from owning rental properties. Therefore, they look up to the project management companies to manage their properties. Property management services are also required by absentee landlords. Owners interested in housing schemes, affordable for them, also look for property management firms. To participate in these schemes, proper knowledge of guidelines, rules and laws related to real estate are needed. Sometimes the owners lack this knowledge. In order to get maximum advantage of these programs, they look for property management firms.
Different states have different property management licensing requirements. Most of them require a license to be issued by local real estate board to the company. Owning this kind of license helps property managers to enter their rental properties in the multiple listing service (MLS). This also allows them to do marketing of their properties in the standard process of real estate marketing. Owning this license also allows this company have their property a real estate board lockbox. In this way, other licensed agents will be able to show their property.
A property management software is used to assist property management affairs like coordination of the front office functions, bookings, communication and managing reports. Such software helps in running large scale hotels and vacation properties. Some business models used in this area include percentage of rent, fixed fee, guaranteed rent and revenue share.
Property management covers a wide variety of activities which involves managing, monitoring and controlling real estate properties. It includes the responsibility of dealing with owners, manage tenants, fulfill licensing needs, manage inquiries and handle any emergency situations.