What is Property Management?
Property management encompasses the activity of preventative maintenance and the security of a real estate asset. Property managers maintain operational, and cost control of any activity required to monitor an asset internally and externally.
Professional services are broadly similar for commercial, residential and the management of any grounds associated with the property.
What is the purpose of a property manager?
A property manager will take overall responsibility for the physical works that are required to to maintain a property. Accountable to a landlord, the property manager has budget responsibility for the ongoing cost of managing the landlords asset.
This includes management and control of all of the processes and systems relating to the property. The recruitment of labour contracts, negotiating of price and validation of any repairs all come under the property managers remit.
In the case of a rental property, a property management company will often market the property and handle prospective tenant enquiries.
As well as documenting a pre rental condition report and inventory, they will also screen the tenants for suitability and produce rental contracts.
Having found a suitable tenant, with the rental contract signed – the property management company will handle rent collection and be the interface between landlord and tenant.
Are property managers worth it?
Landlords hire property managers for their specialised knowledge,.
There are multiple reasons to hire a property manager, depending on the landlords individual situation.
For instance, some landlords may have multiple properties and don’t have the time or possess the resources to deal with maintenance or tenancy matters.
In the case of a holiday rental, or a ‘short term rental’ property where the landlord is remote – there may be no option other than to appoint a property manager.
In these cases a property manager can also act as an agent, whereby they will arrange bookings and offer meet and greet services to holidaymakers.
These services are often incorporated into the holiday package. For example, mid stay cleans, laundry and concierge services.
At the end of the holiday the property manager will check inventories and also for any damage, before returning the deposit to the holidaymaker.
What is the difference between property management and property maintenance?
By choosing a fully managed option, you are putting a professional between you and the tenant, protecting the relationship between all parties and ensuring the relationship stays formal.
When a property developer has completed a project, time will be of the essence. In these cases, daily tenant and maintenance issues will often be left to specialist managers, or a property management company.
Property maintenance is the process of regularly evaluating the effects of wear and tear on a property. Ensuring routine maintenance is carried out, as well as ensuring that the property is legally compliant. This will encompass gas, electrical checks and certification.
What skills do you need to be a property manager?
Interpersonal skills are essential for the role of the property manager. Verbal, written and administrative skills are essential for this type of role, as well as commercial and financial acumen.
The ability to demonstrate tact and diplomacy is necessary, as dealing with peoples livelihood can often be stressful. Especially, when multiple parties are involved.
Being a property manager will present many issues. The nature of this job simply commands that an individual expects the unexpected.
Thinking on your feet and balancing priorities with several different clients is all part of the day to day routine.
When it comes to managing contractors, strong negotiating skills along with a background in project management is a must.
What are three duties of a property manager?
There are far more than 3 duties, but 3 key ones are:
Once a property has been marketed, the property manager will carry out tenancy checks. These will include identity verification, as well as a ‘right to rent check’ and the presentation of the tenancy agreement.
The property manager will also ensure that the property is legally compliant, safety checks and certification are in place.
Generally speaking, property management is the overall administration and maintenance of a real estate portfolio.
Related: Property Management
Further reading: Professional Standards