Property management manages the residential, commercial, and industrial real estate, which includes detached homes, apartments, condos, townhouses, and storefronts. It usually involves the management of property owned by an individual, another entity, or organization. The property owner is the one who owns the property but a property manager or landlord, who is an expert in property management, often acts as an agent between the property owner and tenants. Real estate agents can play a crucial role in Property Management. Below are some of the significant responsibilities of real estate agents:
– Provides housing counseling to property owners and managers. This is often part-time work. Real estate agents have to assess and advise the property owners on effectively running their rental properties. They also assist with maintaining the property, scheduling renters, handling late payments, providing financial and legal advice, and handling issues with tenants.
– Manages residential property investments. In residential real estate investing, property management companies provide the necessary services to deal with residential mortgages, maintain tax records, residential lease agreements, collect rents, prepare leases for renewal, and collect late payments from tenants. These services are provided on an on-call basis. On some properties, a property manager may be employed to manage more than one unit.
– Enforces leases with tenants. Residential property management companies usually employ real estate agents to help maintain contracts between tenants and owners. These agents help customers obtain new leases from existing tenants, renew existing leases, and take care of any problems that may arise. They also assist in collecting late rent payments, pursuing unpaid debts, and taking action against those who violate leases.
– Protects tenants. Many owners and managers of residential property management properties also deal with potential tenants. This includes addressing issues with renters, maintaining lease agreements, collecting late payments, defending landlords from eviction claims, and handling any complaints filed by tenants. Property managers and their agents also ensure that fair housing laws are followed when no contracts have been established and that fair housing laws or guidelines have not been violated. It is the duty of the manager to follow all ordinances.
– Obtains necessary licensing. After obtaining a license, property management businesses can legally operate as a for-profit business. A for-profit entity must comply with many regulations, some of which are very specific. One such regulation requires that management businesses acquire a certificate of occupancy. To qualify, property managers must meet certain standards and have an adequate amount of experience in all aspects of commercial real estate.
– Obtains designations. Some states require property management businesses to be licensed and designated by a local government agency as a duly authorized representative of the landlord. Designations must be valid for six consecutive months, unless the property manager is granted an extension.
– Assigns risk management responsibilities. As part of its responsibility to provide tenants with safe dwelling spaces, residential property managers are responsible for protecting the tenant from unruly or dangerous circumstances. These responsibilities include providing emergency call triage, conducting property maintenance, collecting rental payment in case of late payments, canceling leases in cases of non-payment, responding to complaints by tenants, and obtaining permits and licenses from local government agencies. The manager also ensures that the premises are in compliance with building regulations and other applicable statutes. To perform these responsibilities satisfactorily, property managers are trained in accordance with state-mandated standards and receive annual training seminars designed to enhance management knowledge and prevent property management law violations.
– Manages administrative duties. Landlords typically assign the responsibility of collecting rent to the property manager, collecting security deposits, and overseeing the property’s maintenance. In some instances, landlords assign the responsibility of collecting late or delinquent rent payments to the property manager. Depending upon the nature of the complex, some property managers may also be expected to handle accounting duties, loan applications, collecting rent refunds, and other related responsibilities.
– Maintain fair housing laws. The purpose of fair housing laws is to ensure that persons of differing backgrounds, races, ethnicities, or religions are equally protected under the law. Property managers must conduct background checks on potential tenants, make sure their lease contracts cover fair housing provisions, and maintain records of complaints filed by tenants. If a property manager observes a pattern of discrimination, it is required that the manager develop guidelines to remedy the problem.
Residential property management is a necessary form of business for real estate investors. If a landlord does not have a sufficient number of properties in good repair, it may be difficult for them to attract and retain qualified tenants. When looking for an investment property, be sure to consider how much management a property owner can devote to keeping the properties in good condition. If a landlord spends too much time repairing issues that do not affect the value of his rental units, he may lose money instead of earning it.