Posted by: Patrick
What is Property Management?
Property management is, simply put, the management, operation, and control of property. The property in this case could refer to any kind of commercial, residential, or industrial real estate property. Like other forms of management, property management also involves taking responsibility for monitoring and keeping up the condition and usability of a property.
Landlords may not have enough knowledge or resources to manage property in the right way, especially if the landlord owns a number of other properties or if the property in question is commercial or large in size. In such cases, professional management services are sometimes required.
Property management services take on the accountability of managing a rental or investment property and relieve the owner from the stress of managing it by themselves. However, many of the actions required for upkeep of real estate require the permission of the owner. Therefore, a professional property management service needs to act on behalf of the owner for preserving the value of the property. Actions taken by such services include securing renters and collecting rental amounts, setting and following budgeting expenses, and complying with the applicable rules and regulations. This means that, as a landlord, you need to place your complete trust on the service provider, but this is easier said than done.
Properties that need to be managed can include vacation villas and properties, residential properties, industrial warehouse areas, and commercial retail spaces. The management service earns a profit by taking a commission from the landlord or a percentage of the rent paid by the tenant during the period of management.
Property managers can be specialized in the field of management, but there are also some managers who operate as real estate brokers as well. For example, brokers operating from tourist towns offer property buying and selling services, along with the services of a property management to maintain the vacation properties in the concerned town.
March 08, 2013 at 6:16 pmContinue reading →