Property management takes into account four major areas of responsibility namely;
- Marketing and financial
- Tenant and occupancy
- Administration and risk management
Property manager is identified as owner’s associate in maximising return on investment of the real estate through efficient performance driven by these key responsibility areas. Real estate management company acts in best interest of the owner in overall upkeep of the property, ensure tenant occupancy, rental collection, record maintenance and budget improvement.
Most of the professionals associated with the industry changed their approach and ideas about the scope of management tasks as well as record-keeping after detailed understanding of the concept and working. Let’s have a detailed look into the four considerable areas that fall under the umbrella of property management.
Marketing & financial
Real estate management involves sufficient knowhow of all the budgeting and operating expenses. This information was then used to define the appropriate rental rates, balanced by current market and things or factors being supported in terms of rent. Sound and appropriate details of the specific or all the operating areas alongside the actual rental properties are also required.
Property manager is likely to recommend marketing programmes, advertising strategies and special promotional campaigns as a means to maximise rental and occupancy rates. Routine financial reports are also required against the owners whereas detailed understanding of certain financial statements such as profit and loss statement, budgeting and income taxes are quite important.
Tenant & occupancy
Understanding basic needs of tenants and looking into their requests is important to fulfil this particular function. Preparing them to move in after taking a decision is only the beginning whereas real estate manager is liable of responding to the requests.
Monitor activities as outlined in the lease requisites, collect rent in a timely manner and constant assessment of tenant satisfaction per the facilities offered by certain properties are a few other duties.
The real challenge yet another important component of this function is overseeing eviction of troublesome tenants such as non-payment for prolonged period, violation of the property management contract as well as bringing harm to the unit.
Real estate management is also physical in nature such as looking after interior and exterior structure along with the surroundings to keep the element of interest. Electric work, landscaping, plumbing, extension of the room or roof, foundations, appliances and much more; all are components of physical property.
Real estate manager is responsible to maintain a healthy relationship with contractors, repair companies, budgeting of the capital expenses and track the entire repairs and maintenance process without undermining quality. It’s networked with occupancy and tenant management due to the importance of tenant retention thereby keeping the properties well-maintained.
Administration & risk management
The actual documentation of all the property management functions falls under the umbrella of administration and risk management. State, local and federal governments; all have jurisdiction to a certain extent on real estate management practices.
Meeting the defined reporting requisites is thereby a must to ensure accuracy of the step. Careful recording of the accounts and taxes are crucial especially when it comes to liability, tenant interaction and all related activities for specified periods.
There’re very rigid requirement of the financial functions in most states due to careful and precise handling of the funds paid by renters to the owners. Unlike most of the transactions associated to real estate when representing single side of the deal, real estate management involves dealing with owners and tenants.
Choosing repair companies may raise concerns from owners end that you’re taking a biased approach thereby raising cost of maintenance on their end. In order to practice real estate management, a vacation area with a great deal of rental units and condos are excellent.
All those considering specialisation in property management should understand the core requisites, take on an optimistic approach thereby accomplishing all with efficiency and enjoyment. Remember, all of this isn’t as easy as selling a property.