What is Property Management and What does it Entail?
Property management is undertaking the administrative task on property owned by another entity. A property manager is accountable for the property while making income on commission earned out of the venture. Such properties include industrial buildings, residential homes, office spaces, vacation homes etc.
What are the roles of a property manager?
This involves determining the initial rent. They have the knowledge of the industry hence they know how to set it at the right price to attract potential tenants. Rent collection can be problematic at times. The property manager acts as an authority that enforces payment of full rent on time by penalizing late payment. They also have the inside knowledge on how the estate industry is doing hence can adjusting the rates according to the market trends.
Marketing the property
The aspect of property managers earning from the property ties and motivates them to actively look for clients through advertising and marketing. This means that the property owner can sit back and watch the money roll in without being actively involved.
Doing background checks
It is important for a property management company to be reputable. This means that they have to thoroughly screen potential tenants. Many property owners do not like their property to be affiliated with criminals or people with bad credit. This means that the property manager is tasked with the careful evaluation of who is the best fit for the property.
Dealing with unruly tenants
Tenants who have no regard for others can make a property loose tenant in droves. Loosing tenants means having to spend more money on advertising and refurbishing. That also means that there will be no money coming in for that time the property is vacant. The manager will issue a warning and handle an eviction if the warning is not followed.
Depending on the agreement with the property owner, the manager can file the tax records on behalf of the owner.
Property management requires that you open a legal entity so that you can be recognized by the law and property owners can have confidence in you.