What Is Property Management?

Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and u♕pkeep of properties. They usually work for the owners of investment properties such as ap🌄artment and condominium complexes, private home communities, shopping centers, and industrial parks.

Their main roles are to manage routine tasks delegated to them by the owners and to preserve the value of the properties that they manage while generating income.

Understanding Property Management

Property developers generally want to move on to the next project as soon as each one is completed. Even if they continue to hold title to the prope🐲rty, they prefer to delegate the day-to-day operations t♓o an outside company.

The responsibilities of a property manager generally involve tᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚhe following:

• Screening potential tenants
• Drafting, signing, and renewing leases on behalf of property owners
• Collecting rent
• Maintenance of properties, including landscaping and snow removal
• Arranging for necessary repairs to properties
• Setting up and adhering to budgets for property maintenance
• Understanding state and national landlord-tenant laws and regulations
• Marketing properties
• Supervising other employees
• Handling taxes

The companies must com♔ply w𒁏ith any state and local landlord-tenant laws and regulations.

Owners pay property managers a fee or a percentage of the rent generated by a property while it is under their manageme𒁃nt.

Types of Property Management

Just as property comes in many types, so do property managers. Some firms are specialized in providing management for🔯 a particular type of property, while others offer management services over a range of property types. A huge range of property types can be managed.

Residential Property Management

Res🐎idential property managers arཧe typically hired for rental properties, and they manage the rental process. They can be hired to manage:

• Single-family homes
• Vacation rentals
• Multifamily homes
• Town houses
• Condominiums
• Apartments
• Manufactured homes
• 澳洲幸运5官方开奖结果体彩网:Real estate-owned (REO) properties

Commercial Property Management

Commercial property owners have different needs from those who o𝔉wn residential prꦕoperty. Commercial property management can apply to:

• Public accommodations like hotels 
• Retail properties like malls, restaurants, and gas stations
• Office properties like real estate brokerages or doctors’ offices
• Co-working spaces where professionals rent work space by the day or the hour

Industrial Property Management

Industrial properties that can benefit from manage✨ment include:

• Heavy manufacturing facilities such as automotive plants and steel mills
• Light manufacturing factories such as food packaging
• Warehouses
• Distribution facilities

Special-Purpose Property Management

There are also numerous types of 🐭property that don’t fit neatly into the categories above, but that require management nonetheless. These include:

• Theaters
• Sports arenas
• Resorts
• Senior care facilities
• Schools and universities
• Places of worship

Who Needs a Property Manager?

Several types of property own𒐪ers can♔ benefit from the services that property managers offer.

Landlords, for example, hire property management firms for a variety of reasons. Some may have multiple rental properties in their portfolios and lack the time or expertise to maintain the properties and deal with individual tenants. Some owners only have an interest in owning rental properties and earning profits from them. When this is the case, they hire professional property managers. 澳洲幸运5官方开奖结果体彩网:Absentee landlords also make use of property management services. Some property manꦏagement companies cater to individual landlords who rent out a single property such as a vacation homeꦰ.

Property owners who participate in 澳洲幸运5官方开奖结果体彩网:affordable housing programs tend to use property management services because their rental properties are subject to complex federal guidelines that require specialized expertise. Certain 澳洲幸运5官方开奖结果体彩网:real estate brokers also operate as property managers. For example, a broker in a resort town may provide buyer and seller agent services as well as property management services. When this is the case, the real estat♈e broker lists, shows, leases, and maintains vacation rentals for🍒 a number of property owners.

Special Property Management Considerations

Property management licensing requirements vary by state. Most 𒐪states require property management companies to be licensed by the local real estate board, so property owners need to make sure that the firms they hire are properly licensed.

For instance, property managers in Florida are required to have real estate broker’s licenses to operate in the state. That’s because some of their responsibilities are deemed real estate activity. Holding a real estate broker’s license allows property managers to list rental properties in the 澳洲幸运5官方开奖结果体彩网:multiple listing service (MLS) and to market𝓰 the properties by standard real estate marketing methods. Holding a real estate broker’s license also allows the property management company to place a real estate board lockbox on a property’s door so that other license💜d agents can show the property.

Florida also requires property managers to hold a broker’s license if they deal with rentals or leases and receive a 澳洲幸运5官方开奖结果体彩网:commission for their services. However, property managers who manage the properties that they own in the state don’t need a license to do so.

Managers in Massachusetts don’t require a broker’s license. That’s because certain du𝓰ties considered to be real estate activities, such as listing and leasing properties, may be secondary to the main duties performe🍸d by the property manager.

The Bottom Line

Property management is the oversight of real estate by a third par🌊ty, normally a professional property manager or property management company. Property managers can manage many differe♊nt types of property: residential, commercial, industrial, and property for special purposes.

Property managers are generally responsible for the day-to-day operations of the real estate, from screening tenants to 🃏arranging for repairs and maintenance, and ar🐻e paid via a fee or a percentage of the rent generated by the property. Every state has its own laws regulating the activities of property managers, so it’s important for property owners to check that potential property managers are properly licensed for their state.