What is property management?

When people ask me what I do, and I answer “I’m a property manager,” they often ask me what that is.  Once in a while, someone will kind of understand, but assume that I manage apartment buildings, and are surprised when I explain that I manage and list residential properties.  So I have to explain to them exactly what property management is.  So what is property management?   According to investopedia; “property management is: “the managing of property that is owned by another party or entity. The property manager acts on behalf of the owner to preserve the value of the property while generating income. Managed properties include residential and vacation properties, commercial retail space or industrial warehouse space. Property managers are typically paid a fee and/or a percentage of the rent brought in for the property while under management.”  In my case I work with residential properties.  Typically in residential property management, the leases are long term, at least a year. 

In Brevard County the typical monthly percentage for residential property management, is 10% of the monthly rent.  To earn this fee, the property manager usually performs the following duties:

·         Collecting monthly rent

·         Communicating with vendors, utility companies, home owner associations and/or condominium associations

·         Paying invoices for the properties 

·         Distributing payments to owners

·         Providing owners monthly , and a year end statements

·         Working  with tenants to resolve complaints, or implement requests

·         Performing periodic inspections of the property

·         Renewing and negotiating leases

·         Posting late notice if necessary

·         Initiating eviction procedures

There can be a lot more to it, depending on the owner, the property and the tenant, but that mostly sums it up. Tenant placement involves a whole other list of responsibilities and I will write about that another day.