The property owner and property manager are partners in maximizing the return on investment of a property. The management company acts in the best interests of the owner to maintain the property, keep it occupied with quality tenants, collect rents, budget improvements and maintain records.
Marketing and Financial
Commercial and residential property management involves an understanding of operating expenses, budgeting and the best approach to marketing. The management company knows appropriate rental rates and will set the rates according to the current market to effectively fill vacancies.
Property Managers will recommend marketing programs, special promotions and other advertising strategies to the owner in order to maximize occupancy and rental rates. In addition, regular financial reporting including financial statements, profit and loss, income taxes and budgeting are all crucial in maintaining the partnership with the property owner.
Tenant and Occupancy
Understanding the needs of the tenants is an important function of property management. Tenant occupancy is only the beginning. The property manager must respond to the tenants’ requests, monitor their activities in relation to their lease, collect rent in a timely manner, and continually assess the tenants’ satisfaction with the property. The unwelcome task of eviction for violations or non-payment is part of this function as well.
Property management also involves the physical management of the structures and common areas. Landscaping, electrical, plumbing, roof, walls, and much more are all part of the physical property. The property manager must maintain relationships with contractors and repair companies, budget capital expenditures, and monitor the quality of all repairs and maintenance.
As some improvements will require significant capital expenditures budgeting for them is an important part of good management.
Federal, State and local governments all have some jurisdiction over real estate property management activities. Certain reporting requirements must be met and meticulous records for accounting and taxes are a must. There are very rigid requirements in most states for the handling of funds paid by renters for disbursement to owners.
The benefits of a partnership with a professional property management company will more than make up for the cost of services.