Property management is the oversight of a property by a property manager on behalf of the property owner. The owner generally pays the manager a fee. In exchange, the manager usually handles the day-to-day management of the property, serving as a liaison between the owner and any tenants. Property owners and managers typically enter into a written contract specifying the duties to be performed by the manager and the compensation to be paid by the owner.
Property owners may elect to use property managers for a variety of reasons. If an owner has multiple rental units, he or she may find it helpful to engage a property manager. An owner with limited time or an owner who does not want to be involved in the day-to-day management of a property may also benefit from the assistance provided by a property management company. In addition, property managers can prove invaluable to owners that live far away from their rental properties.
Managing a property often involves a variety of administrative tasks, including handling property maintenance, supervising building repairs and ensuring outgoing expenses are paid. Owners who desire to rent their properties to tenants may use the services of a rental property management company. These types of companies can provide services such as marketing rental properties, securing tenants, and negotiating rental lease agreements. Additionally, a rental property manager is usually responsible for collecting rent and addressing tenant complaints. Some rental property managers may even handle tenant evictions.
Two common types of property management are commercial and residential property management. A commercial property manager supervises industrial or commercial properties, such as office buildings, retail space or industrial and storage facilities. A residential property manager oversees rental housing, such as apartment buildings or single-family homes. Some countries require commercial and residential property management companies to adhere to certain licensing requirements if they are performing functions like collecting rent, marketing properties or negotiating lease agreements.
A property owner seeking to hire a property management company should take care to select a company with experience. Prior to selecting a company, the owner should conduct thorough interviews. In addition, he or she should ask for references and require details about the company’s fee arrangements. While management fees are typically a percentage of the rent revenue, flat fees may be more appropriate in some cases. Professional real estate directories may also prove useful in determining whether a company is appropriately qualified to oversee a property.