Real Estate - Property Management

Purchasing real estate can be a multi-million dollar investment. But chances are, time is scarce when it comes to realizing this investment's full potential. Using a property management service provide the experience and expertise to ensure the largest return on a property purchase.

For owners, property management companies eliminate much of the headache involved in owning properties such as apartment complexes and condos. Here is a small sampling of the responsibilities management companies fulfill: set, bill, and collect rent; evict delinquent tenants; maintain the grounds; and lease or sell units to prospective tenants.

The three main advantages of using property management services are as follows:

1. People. Property managers have the experience and knowledge that will best preserve and enhance the property's value. Just like with any business venture, it is important to hire the right people to run the property. The reason? To maximize income and keep expenses as low as possible. The right management company provides the property with a staff that values good customer service, which is critical to holding the property's value. Also important is the staff's knowledge of applicable state and federal laws. Failure to follow these will results in a lost investment.

2. Product. In commercial real estate, the product the owner is pushing to customers is the property. Properties have to be well managed to maintain their value and attract tenants. Property management companies come with a well-trained force of maintenance and grounds staff to keep the property looking its best and running smoothly. Also, management services best understand the market challenges and pricing.

3. Price. Because property management companies are in the best position to analyze the market trends, they can help property owners get the maximum rental rates. This knowledge ensures that the tenant feels he or she is paying a fair price, and that the owner feels a good return is being made on their investment. Market knowledge also allows property managers to effectively use marketing dollars to generate traffic, leading to more sales. And finally, property managers save owners money by coming with extensive vendor contact lists that ensure the best pricing for the property.

Preserve and enhance your real estate investment by placing it in the experienced and
knowledgeable hands of a property management service.

One important role is that of liaison between the landlord and/or the management firm operating on the landlord's behalf and tenant. Duties of property management include accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants. In exchange for the service they provide, property management companies charge landlords a percentage of the gross rent collected each month.

Property managers may manage construction, development, repair and maintenance on a property. Property manager relations with tenants gives a face to the landlord and provides a buffer for those landlords desiring to distance themselves from their tenant constituency.

There are many facets to this profession, including participating in or initiating litigation with tenants, contractors and insurance agencies. Litigation is at times considered a separate function, set aside for trained attorneys. Although a person will be responsible for this in his/her job description, there may be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with applicable municipal, county and state laws and practices.

Property management, like property management is increasingly facilitated by human manpower.