Property management is a profession that covers many facets of management operations. This service provides management services to industrial, commercial and residential clients. The tasks are varied depending on the needs of the client.
Most everything that is large enough and has a reasonable revenue may merit the expenditure required to hire a property manager. Generally we imagine that this service only applies to portfolios, condos, and apartments. However this is not necessarily the case. Beneficiaries of large estates may find a need for this service also.
How do you choose a management company wisely? First of all there are many reliable companies that will oversee your property. Real estate agents are an excellent source of references as are other owners who use the service. Buildings usually display the name of the company that they are using and your newspaper will have advertisements for services in your area.
Now that you have some names what is the best course to take to evaluate each one. You would certainly question them on their rates and specifics of what service is provided for this rate. For rental properties are there any further charges if they show the property or go to court because someone is being evicted. Is there qualified staff answering enquires on the weekends and what are the business hours?
Do they need the approval of the owner over a set dollar amount? Are they going to market any available units or are you responsible for marketing and setting rental fees? By asking these and more questions you are able to ascertain the company that best will meet your needs. Your goals must be made very specific and the company must acknowledge and understand what is expected of them.
Generally, some of the task that the company will undertake, with your approval, are keeping accounts and issuing reports, whether weekly or monthly, as you have determined. Paying the taxes in a timely manner. They have the responsibility for leasing, setting the rental amounts, and collection of rents. Execute any maintenance and repair required in or around the building. They must also provide for the utilities and the insurances needed for all eventualities.
It is possible that you have hired a management company for investment management. This is quite different than a regular property manager. This company will be responsible for acquisitions and disposition of assets. They will provide development and rehabilitation probability studies. All financing and income tax accounting are executed by them and reported to you.
An important task of these companies is to act as liaison. They must liaise with your tenants, insurance firms, repair companies, and attorneys who are available when litigation is required. The company must be well versed in the municipal, county, or state regulations and practices. As many landlords do not want to address issues directly they rely on their management company to act as a buffer for them.
Should you be in the position to require the services of a management firm be sure to have your priorities in hand when interviewing them. They are in fact your employee and must report back to you. It is your responsibility to choose the right one.