In simple terms, property management is the process of running a property. It is the responsibility of a property manager to maintain the property, produce income, and keep it in good condition.
The property in question can be residential, industrial or commercial real estate.Efficient property managers administer and supervise all the apartments for rent Richardson TX.
A property manager’s task is challenging and calls for an able-minded person with the capability to multitask at ease. Usually the landlord or a third party is a property manager.
Roles of a property manager
The key functions of a property manager revolve around:
- Occupancy of property: It is the responsibility of theasset manager to secure tenants for a real estate. He should market the property in the first place, interview potential tenants, conduct background checks, negotiate the terms of lease with the tenants, and obtain the signed rental agreement deed.
- Tenancy: Once a tenant occupies a property, it is the task of the asset manager to monitor the residents. He is in charge of promptrent collection, eviction if the tenant defaults over a long time and solvingtenant grievances.
- Property maintenance: Any repair or renovation in plumbing, wiring, landscaping, and any form of construction problem and cleaning is administered by the property manager. He must conduct periodical property inspections and have a team of repair contractors, sketch out possible expenses, and handle the property budget efficiently.
- Record-keeping: A property manager must keep track of all assetsrecords. In essence, this involves tax records, property expenditures, tenant history, rental records, repair contracts, and warranties.All these components should be carefully tracked as it is used as supporting data in the event of any legal issues.
Some investors deem it their responsibility to be the property manager of their real estate. Others shirk from the task and prefer hiring a third party property manager.
Here are the pros of hiring:
- It saves a lot of time to investors who hold high positions in a corporation.
- It is especially a wise option if the investor lacks any interest or does not have management capabilities.
- It is good to get the service of an experienced property manager as he is sure to have extensive knowledge of rights laws and tenant handling experience.
- It is a convenient option if the owner resides far from the property.
Nevertheless, hiring has two major cons:
- Property managers come with a cost: they require a percentage of the rental income.
- Some are prone to cheat by collecting extra money from tenants.
Things for the owner to consider
Owners have to be very cautious when it comes to hiring a third party property manager. It is implicit that the owner does exhaustive research on prospective candidates, is honest about rental percentages, and establishes a good professional relationship with the hired candidate. A good source from which to hire property managers is a reputed property management firm with stellar property practitioners.