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Property Management 101

The idea of property management (sometimesproperty management company. Typically
referred to as 3rd party management) has beenproperty management companies will charge
around since the dawn of time. But, beforetheir landlords a percentage of the gross
property management was a job or career, arent collected each month. This percentage
title or a company, property management hasfor property management fees can range from 3
been an action that many people attended toto 10% depending on the property management
around the land or buildings that they ownedmarket. Sometimes a flat fee is more
themselves or leased from someone else.appropriate when the property is a
Property management can mean different thingscondominium or a type of cooperative complex
to different people. For some, propertyfor property management. Some states might
management might mean keeping their ownrequire that property managers have a
property safe, secure and pleasant to theproperty management license or a real estate
eye. For others, property management couldlicense to be able to claim the title of
mean paying someone else to make sure yourproperty manager or property management
property is in tip top shape. Some types ofbusiness.
properties that may need property management
are; houses, condos, duplexes, town homes,A cousin to property management is facility
apartments, shopping centers, malls, officesmanagement. Facility management is like
buildings, airports and public transportationproperty management but the focus is the
buildings, hospitals and many more. Propertymanagement of buildings and services. One
management is very similar to the role ofdefinition from a large facility/property
management  in  any  business.management association says, "A profession
that encompasses multiple disciplines to
One important role that property managementensure functionality of the built environment
has is to act as the middle person betweenby integrating people, place, process and
the tenant and the property managementtechnology." Australians prefer the term:
landlord. Property management should provideCommercial Services to property management,
the property management landlord with a sensethis term replaces facilities management in
of security, knowing that everyday needs fromsome organizations. Besides keeping the
the renter can be resolved without involvingproperty up to date, commercial services can
said property management landlordalso include duties such as waste disposal,
unnecessarily. Hand and hand with thatparking,  security,  landscaping  and  more.
security, the tenant can be assured that the
property will be maintained to some set ofA homeowner may provide his or her own
standards which can be reviewed with theproperty management, but property management
property management team before an agreementis not limited to the duties of house
is reached. Property management is a delicatecleaning, lawn care and landscaping, building
balance between pleasing the propertymaintenance, trash and waste disposal and
management landlord and keeping the renterinterior upkeep. Property management can be
happy as well. The task of propertyall of these, and can be hired out to a
management can prove to be harder than itprofessional that can provide better property
sounds. Maintaining an open line ofmanagement services than the homeowner can or
communication in property management andwould provide themselves. These property
being able to address the needs of bothmanagement services come with a price and if
property management parties will make athe homeowner is willing to pay for outside
successful property management business.property management, the sky is the limit on
Other duties for property management but arewhat they can have managed. Some property
not limited to; collecting rent, posting andmanagement companies even manage home owners
showing vacancies, maintenance issues,associations (HOAs). In this instance the
evictions, failure to pay rent issues,property management company is the middle
harassment, and background checks on theperson between the homeowners and the land
application forms. It is very important thatdeveloper. Once the developer has completed
a profitable property management staff orhis contracted tasks, the neighborhood is
team be knowledgeable in the current laws ofthen turned over to the HOA. The property
the city, state and county concerning tenantmanagement company may stay on board for a
rights vs. landlord rights. Be sure yourfee to help the HOA. A landlord may also
property management team is up to date onprovide property management services himself
current property management codes, and otheror have it hired out to a property management
items that will benefit your propertycompany. A large company or corporation might
management business. Getting caught up inhave internal structures in place to provide
property management legal matters is no wayproperty management on site or they may
to  run  a  property  management  business.choose to hire an outside property management
company to provide the property management
The following is the definition of propertyservices that they would need on a day to day
managers/property management as posted bybasis. Both of these operations are a
Wikipedia on their website. Propertyreasonable and effective way to tackle the
management is a person or firm responsibleissue of property management on a large
for the operation of a real estate propertyscale.
for a fee, when the owner of the property
cannot or is not interested in managing theWith the world of technology growing
property themselves. The property manager oreveryday, it makes perfect sense to have
the property management company has a primaryapplicable property management software and
responsibility to the landlord and aproperty management computer systems that
secondary responsibility to the tenant.deal with property management in place to
Relationships the property manager orhelp with property management or facility
property management team have with themanagement. You can have your home wired and
landlord and with the tenant are crucial inprogrammed to turn the lights on and off when
forming the expectations of both parties toentering a room. Constant temperature and
the lease since both parties will seek andhumidity levels can be monitored along with
expect certain rights and benefits out of it.major appliance functions. Watering of lawns
Owner's expectations from the propertyand security systems has become high tech and
manager/ property management team are toavailable to the everyday homeowner who wants
carry out the owner's instructions, controlproperty management. Some passenger vehicles
costs and maximize revenue to maintain anow include a "remote" that when programmed
stabilized cash flow as a return on capitalcan turn the lights on, turn the TV on your
invested, exercise control over the buildingfavorite station and more, all from the
to safeguard the capital invested, provide acomforts of your car. Heaven forbid you will
duty of care through proper maintenance ofhave to walk into your dark and quite home.
the building, to be professional and wellHome builders, architects and engineers saw
informed, enhance the value of the propertythe potential for using large scale property
by making improvements that will increase itsmanagement ideas in the home. Beyond the
market value, retain and enhance pride ofhome, large commercial properties, computer
ownership. The tenant's expectations from theaided facility management (CAFM) has been a
property manager/ property management teamnatural progression of the marriage between
are the "quiet enjoyment" 'assurance of thetechnology and facility/ property management.
use and enjoyment of the premises for theIn the late 1980's CAFM evolved to allow
intended purposes without interference fromlarger properties to manage their property
the landlord, comforta living environmentmanagement sites more efficiently. Most
properly heated, cooled and ventilated withoften, CAFM systems track and maintain; floor
as many amenities as possible compatible withplans, LAN and telecom information, business
the rental level, security and safetyto livecontinuity and safety information, workplace
or work in a building in which there are noassets, employee and occupancy data, building
inherent defects or conditions that might beand property information and space
hazardous to health or to property,characteristics and usage. Being able to
statusaccommodation and facilities that meetsupervise the goings on of your with a
social-economic and cultural standards forproperty management company in an efficient
the  tenant's  and  their  guest.and well structured way will help your
property  management  bottom  line.
Property management can be a very lucrative
business when handled correctly. PropertyIf you need information about property
management takes an organized, wellmanagement, the internet is a great place to
communicated, and dedicated individual orstart.
staff to be able to pull off a successful



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