Do you happen to own a property and have little to no time to manage it? Well, that’s where property management companies come in handy! Property owners get several burdens off their shoulders by handing over several tasks to property management companies.
If you’re curious to know what is property management, read on to find out!
What is property management?
Property management is a regulated profession. Property management is essentially controlled by a third-party contractor over residential, commercial, or industrial real estate. They are typically employed by the owners of investment properties such as apartment and condominium complexes, private home communities, shopping centres, and industrial parks.
Types of property management
Residential property management
On behalf of the owner, a residential property manager manages an income-producing residential property. Residential properties include single and multi-family homes, condominiums, townhomes, and apartments. This type of management differs from other types of property management in that it focuses on smaller properties and buildings.
Industrial property management
Industrial property management entails managing all aspects of an industrial property strategically in order to increase its value and financial returns. It can range from leasing the property and negotiating lease terms to handling utility maintenance and renovations. Industrial properties include warehouses, distribution centres, light manufacturing factories and heavy manufacturing factories.
Commercial property management
Commercial management entails the tasks and responsibilities of running a revenue-generating property. Depending on the size and type of property, the commercial real estate management firm can be one or two people or a large team that works onsite. Commercial properties include retail properties such as malls, office properties such as real estate brokerages and public accommodations such as hotels.
Special-Purpose property management
A special purpose property is a property management that cannot be easily converted to another use and where the business operation is inextricably linked to the real estate value and physical location. Some of the special-purpose properties are sports stadiums, resorts, nursing homes for the elderly, colleges and universities, worship areas and theatres.
Who is property management for?
The services provided by property managers can benefit a variety of property owners. Landlords who live in a different country or different area need property management because owners who live overseas do not have the luxury to check on the tenants’ issue or complaints immediately over a phone call. This is where property managers might help you to get things done!
Property management is also for people who simply lack the time. Landlords that do not have the time to manage a property might need a property manager. Time is money. So, people buy other people’s time with money as they do not want to spend their own time finishing business.
Besides, landlords have a hard time dealing with and convincing tenants. Landlords or owners of property sometimes are owners without any business background or knowledge.
So, this might hinder them from knowing the ways to deal with tenants (all the formal parts of convincing a tenant or maybe the issues you face with a tenant such as collecting rent). This is where property managers come in handy as they have the professional knowledge that will help you to deal with your tenants and get things done.
What does a property management company do?
Property managers act as your employees as they are “hired” by you to manage their properties. Property managers are not making any money during the vacancy of your properties, they only collect their fees when the tenant pays rent.
This essentially means the property managers have a vested interest in fixing your property up as quickly as possible because they are not making any money if you’re not making any money. With that being said, what do property managers do? The property manager’s responsibilities typically include the following:
- Get your property fixed up.
- Advertising and showing the property.
- Finds and screens applicants (check for criminal records, credit check, verification of employment and landlord references).
- Collects the rent.
- Gets the tenants to sign the lease.
- Provides a monthly and year-end statement.
- Conducts periodic inspections.
- Estimates fix-up cost.
After going through everything that you need to know about property management, you might want to consider managing your property with a property manager as well. If that’s the case, Airhost is a reliable company that offers property management services! Contact us here!