Property Management: Four Major Areas Of Functionality

Property manager is the owner's partner in maximizing the return on investment of the property through efficient performance of these four areas of responsibility. Property Management Company acts in the best interests of the owner to maintain the property, keep it occupied with tenants, collect rents, budget improvements and maintain records. 

  - Marketing and Financial.

·   Tenant and Occupancy.

·   Facility.

·   Administration & Risk Management

It's definitely a niche area for expert and responsive persons in profession.

Marketing and Financial

Real Estate property involves understanding of operating expenses and budgeting.

From this information, appropriate rental rates are set, balanced by the current market. A firm knowledge of the area and competitive rental properties is required.

The property manager may recommend marketing programs, special promotions and other advertising strategies to the owner in order to maximize occupancy and rental rates. Regular financial reporting to the owners is required.

Understanding financial statements like profit and loss, income taxes and budgeting are all very important for property manager.

Tenant and Occupancy 

Understanding the needs of the tenants is important for this function. Getting them to move in is only the beginning. The property manager must then respond to their requests, monitor their activities as regards the lease requirements, collects rents on time and continually assess the tenants' satisfaction as regards the property's amenities versus those of competing rental properties in the area.

The unwelcome task of eviction for violations or non-payment is part of this function also.

Facility Management

Property management is also physical management of the structures and outdoor areas. Landscaping, electrical, plumbing, roof, walls, appliances, and much more are all part of the physical property.

The property manager must maintain relationships with contractors and repair companies, budget capital expenditures, and monitor the quality of all repairs and maintenance. This function works in coordination with the finance department, as some improvements will require significant capital expenditures and  a budgeting for these. It also ties with tenant and occupancy management because it is important to tenant retention to have well-maintained properties. 

Administration 

This is about files and records part of the property management function. Central, state and local governments all have some jurisdiction over real estate property management activities.

Certain reporting requirements must be complied with for all of them. Meticulous records for accounting and taxes are a must. For reasons of liability, all activities and tenant interaction must be recorded and maintained for specified periods.

Though also related to financial functions, there are very rigid requirements in most states on the handling of funds paid by tenants for disbursement to owners. 

Those considering specialization in real estate property management need to understand the requirements, and have a good feeling about being able to accomplish them all with efficiency and enjoyment. It's not easy like selling Real Estate.