Property Management

Property management pertains to the processes applied to maximize returns by effective administration of property--one of the major assets of most organizations. It also comprises the disciplines implemented on property rules and rental policies.

Property Management is a career profession that is a part of our growing business industry. A property manager's employment can either be directly under the supervision of a real estate property owner, or for a property management company, hired by an owner or legal entity to look after the real estate over a particular span of time.

A property management company is tasked with the responsibility of managing the multiple aspects which come along with the ownership of real estate. This is akin to the role of management in any business.

One of the important roles property management companies play is that of acting as liaison between the landlord and tenant. Their duties include posing appropriate gross rent, accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants.

In exchange for the service provided, property management companies charge landlords a percentage of the gross rent collected each month, in addition to lease commissions.

In addition to managing income and expense related activity, property managers may also manage construction, development, repair and maintenance on a property. The direction of repair and maintenance is quite a large part of a property manager's function.

Property managers should develop a relationship with the management company, property owner and tenants that is based on a mutual trust and complete confidence in one another. His alliance with tenants gives an advantage to the landlord and provides them the necessary buffer servicing their desire to profit and distance themselves from their tenant constituency.

There are many aspects to this profession, including participating in and/or initiating litigation with tenants, contractors and insurance agencies. Litigation alone is at times considered an entirely separate function, set aside for trained attorneys. Although a person or persons will be responsible for this in their job description, there may or may not be an attorney working under a property manager.

Special attention is given to Landlord/Tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with new laws and practices in their given localities, cities and states.

Excellent property management can only achieved by top-notch managers. To be the best in this field, one must know and stay updated on local ordinances and state laws; be highly honest and ethical in enforcing property rules and rental policies; be detail oriented and organized with paper works; have good communication and computer skills; like working with the public; have a strong sense of duty and commitment; and be an exceptional follow-up person.

Copyright 2007 Ismael D. Tabije

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Top 5 Questions For Property Management Companies

Insiders Tips to Operating a Successful Property Management Company

Property management companies are an excellent resource to have on your side as a Dallas real estate investor. Most investors have numerous investment properties and not enough time to manage and maintain all of them on their own. This is where property managers step in and get the job done.
Word of mouth is a great way to find an excellent property management company. If you are an investor with a few contacts in the area, ask them for referrals and opinions on local companies. As an additional resource, I have compiled a list of the top 5 questions property management companies are frequently asked.
1) What kinds of properties do you manage?
There are all kinds of management companies out there, serving various markets. There are those that manage residential properties, single family properties, multi-family properties, commercial properties, etc. You'll want to make sure to use a company that manages the type of properties you own.
2) What types of services do you provide?
Some property management companies only offer one kind of service, while others offer many. An example of the types of services would be lawn maintenance, screening tenants, overseeing repairs (from bid process through completion) and even managing your accounts. To determine the types of services you will need from your property manager, you must first decide how involved you wish to be in personally managing your own property.

3) Is there a contract?
It's not uncommon for management companies to have their own contracts for owners to sign. You want to pay attention to the fine print and any fees that may be charged. Contract length and early termination fees are two of the most important things you should review and consider prior to signing anything.
4) What is the owner's level of involvement?
As previously mentioned, some management companies handle it all and some handle minor issues - HOW they handle these tasks can be a big issue. Some owners have no qualms about literally handing everything over to the property manager and letting them make big and small decisions without their approval. Others like to be updated on a frequent basis. Others do not want to be involved in the minutiae and only wish to be contacted in regards to bigger issues, such as tenant placement or large repairs. Ask the management company what their policy is in regards to keeping the owner updated on the property status.
5) How can I contact you?
It's important that your property manager has a way to be contacted at all times. Most managers have cell phones and an email address, which makes them easy to reach and gives them the ability to respond quickly. Others prefer to use landlines and voicemail. Whichever methods they prefer to use, it's important that they keep their numbers updated and check their messages frequently.
Be sure to do as much research as you can before choosing a property management company. Remember that these property managers are working with your Dallas investment property (a.k.a., your money), so you want someone you can trust and rely on. You want managers that have initiative, are self-motivated, trustworthy, reliable and responsible - all important traits that are needed to manage your properties well, keep them filled with good, qualified tenants and get repairs done as quickly, and reasonably priced, as possible.

Karissa is a real estate investing enthusiast and loves sharing the knowledge she has of this field with others. She is also a member of MyHouseDeals.com, which is where she gains access to investment property listings.

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