What is property management? What does a property manager do? This is important information to have if you deal heavily in the business of rental property because it can mean the difference between being a good businessman and an excellent businessman.
Before I go any further into detail about the role and importance of Property Management, let’s discuss the roles and responsibilities of a tenant and a landlord. This should aid in the better understanding of property management and how it fits into the bigger picture.
A tenant can be almost any one. They can be college students, single persons, or even whole families. Most tenants have one goal in mind; they wish to temporarily rent a place of residence at a price that fits into their budget. Issues such as price, location and not to mention the quality of the overall establishment (furnishings, appliances, etc.) are almost always also taken into consideration. The tenant’s responsibility will be to preserve the quality of the owner’s property including all appliances and furnishings, as well as the condition of the interior and exterior of the establishment while they are residing there. If during this time landlord’s property is damaged, it is then the tenant’s responsibility to repair, fix and pay for all the damages they may have caused. This responsibility is covered in almost every contract that is settled and is signed by the tenant before the date when the tenant takes over residency of the home.
Most Landlords and property owners make profitable income from their real estate investments and find that a repetitive check on the upkeep of their properties is always beneficial. Landlords most often have the responsibility of updating the furnishings that adorn the inside of the establishment. Some of these basic essentials include couches and other seating, entertainment systems, kitchen appliances (such as refrigerators and stoves), desks and bedding, etc. In many cases the landlord is more often than not physically incapable of being an on-site manager of their property, this is normally because they do not live in close proximity to their rental properties and or may have too busy of a schedule to personally handle every property they may own. It is the landlord’s decision how much involvement they want to have in communicating with their tenants. Most landlords give a third party the control over the business matters with their tenants. This is what is referred to as property management.
Property Management is of great importance because it serves as that middleman between the tenant and the owner. Property Management is beneficial to all parties involved in the following ways.
Benefits for the Landlord:
- Effective Property Management advertises the landlord’s properties to prospective tenants
- A Property Manager will handle all correspondence and assistance all tenants when needed
Benefits for the Tenant:
- Fast and easy to contact help for the tenants when they have questions or problems
- A Property Manager will serve as a neutral third party which helps when dealing with potential problems.
As a Property manager a person has the opportunity to fill an essential role for their clients when using the right tools. Property Management is an essential resource because it will help to more effectively handle business and concerns between the tenant and their landlord. It helps to build better business relationships when a tenant has communication with a name and a face they recognize when they have a problem.
For those real estate owners who open their doors to rental tenants but cannot be there to effectively handle all problems and manage all sites due to a busy schedule, property management is the solution you have been looking for. It will help create better relationships between you and your clients and will also help to make you more money in the long run by giving you more time to tend to other areas of your business and career.