Property management is big business. Many different types of properties can benefit from professional management, and so the service is relatively in demand. It can be a very good investment for anyone who owns a property but does not want to be hands-on in the day-to-day running of that property. The intention of this guide is to be a helpful resource for people unfamiliar with what property management is and how it works.
Property management is when an individual owner, company or association hires a third-party firm to help manage and maintain the property. It is especially common with rentals, such as apartment complexes and commercial spaces where the owner may very infrequently be on-site. For owners or firms who own a number of properties it is often a very necessary service. These firms can also be hired by private owners to maintain even just one other property they own, such as a summer home, where the owners do not live for the majority of the year.
Property management firms manage and help maintain properties, whether residential, commercial or industrial. Owners get final say in financial and maintenance matters, but property management firms do all the information gathering for the owner and advise them on the options they have.
Property management firms are typically responsible for things such as:
Using a property management service has a myriad of benefits for owners. It leaves the day-to-day management of a property in the hands of professionals so the owner does not have to spend the time to do those things themselves. Property management firms have established relationships with qualified contractors and other professionals to ensure that jobs get done right and by the best people. They make sure every contractor that works on a property is properly insured and keeps a record of that insurance. These firms are also experienced in legal matters relating to property, such as tenant law, association law and other laws governing property and buildings. Because of this, hiring a property management firm can protect owners from legal problems. Owners will be given sound professional legal advice to avoid issues and have solid representation if a matter ever goes to court.
Like most specialized businesses, there are a number of software products out there that cater to property management firms. Software products make property management a whole lot easier because they keep track of all building maintenance history and tenant history, including their personal and contact information, contact history and rent/dues payment history. Some of these programs bridge the gap between the management firm and the residents/owners/tenants by giving them limited access to their profiles and the status of their accounts. There are even specialized software programs for different types of property management. The program known as Caliber, for example, is specialized for homeowners/condo association management firms and allows them to keep and easily access information about every resident in every property they manage.
Property management is an indispensable service for many property owners across the country. It's worth looking into for anyone in charge of an apartment complex, rental homes, a homeowners or condo owners association, commercial or industrial buildings or an individual property owner who owns more than one property.