Property management is a term used to refer to a number of professional services offered to a landlord with the aim of maximizing financial returns from the property investment. Each service provided by a property manager falls under an area of responsibility associated with property management.
It is important for a new landlord to understand the various areas of responsibility before paying for professional property management services. This understanding is meant to give the landlord a rough idea of what to expect from a property manager or management company.
Services Related To Tenancy And Occupancy
Tenancy and occupancy-related services form the first area of responsibility for professional property managers. A property management company is charged with the responsibility of sourcing potential tenants who will occupy rental property. The company or manager will pre-screen tenants before allowing them to move into the property. This often involves checking their credit and criminal history among other important details.
Once the tenants are in, the property manager is responsible for dealing with any grievances that the tenants might have. He or she is also responsible for monitoring tenant activity within the property to ensure that the tenants do not breach the provisions of their lease agreement.
In addition to collecting the rent and overseeing the eviction of tenants who default on payment, the property manager assesses the degree of tenant satisfaction with the property amenities in relation to that of other tenants in rival rental properties.
Financial And Marketing Services
Provision of financial services is the second area of responsibility for professional property managers. Provision of financial services requires property managers to understand the operating expenses of the property and budget accordingly. This understanding enables the manager to determine the most appropriate rental rates in relation to the prevailing market trends.
Property managers will also determine the best marketing strategies to adopt so as to maximize the rate of occupancy within the property. However, the most important service under this area of responsibility is the preparation of financial documents on behalf of the landlord. These documents include tax return forms, personal financial statements, and profit and loss reports among others.
Facility management refers to the physical management of building structures within the property, as well as outdoor areas. This area of responsibility requires property managers to undertake electrical and plumbing repairs on the building, renovations, and appliance repairs whenever there's need. He or she is also responsible for all activities related to landscaping on the property.Facility management is an important area of responsibility whose effectiveness is essential for tenant retention.
Investing in professional property management is a worthwhile endeavour for all new landlords. For more information, contact a local property management company like PRDnationwide.
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