Hiring a qualified property manager to help you run the day-to-day operations of your rental property is the best way to earn good returns, especially if you lack sufficient time to oversee the work yourself. Fundamentally, the role of the property manager is to link the property owner to bankable tenants and ensure the property is maintained in good condition to continue attracting tenants.
If you want to pursue a career in property management, it helps to know who is a property manager and the work they are expected to do. We have written this article to briefly explain the meaning of property management, the need for a property management license, and the different everyday responsibilities of the property manager in real estate investment.
Property Management Definition
Property management is the supervision and management of residential and commercial properties to ensure they operate at their best. This means the property manager must take the lead on everyday professional tasks such as rent collection, maintenance, and repair work, and handling all tenant issues, among other responsibilities. However, the scope of property management duties is determined by the contract terms between the landlord and the property management firm.
For instance, the property owner may require the property manager to take care of rent collection only or may include extra duties such as handling all the operations to keep the property in marketable condition.
Property Management License Definition
Like many others, property management is a regulated profession. Property managers must have a valid property management license or a real estate broker’s license to work in this field. The qualification criteria for this license depend on the state you live in or work in. A license helps you to abide by the law and boosts your professional credibility significantly.
You can apply for a property management license at the state government, local authority, or real estate professional registration boards. To qualify for this license, you must be 18 or older and possess a high school diploma. Many companies will ask you for a bachelor’s degree in business, real estate, or a similar career line.
Property Management Company Definition
A property management firm is a legal entity where property managers execute their functions. If a property owner lacks enough time, skills, or experience to manage their property, their best option would be to hire a property management firm. Numerous property management companies operating in the United States are willing to offer the professional solutions you need.
The Functions Of Property Management
To determine the scope of the duties of a property manager, you need to read the contract between the property manager and the property owner. Some property owners only ask the property manager to collect the rent, while others delegate all property management duties to the professional.
Below is a list of the typical duties of property management:
- Knowing the laws and procedures delimiting the landlord-tenant relationship
- Taking care of the repair and maintenance needs of the building
- Marketing the vacant spaces to potential tenants
- Managing the tenant roll
- Collection and management of rent
- Supervision of staff
- Managing the property’s budget
- Remittance of property tax
How To Be A Good Property Manager
1. Understand the rules and guidelines that govern the relationship between the landlord and the tenant.
The best property manager understands the state and national laws affecting the landlord-tenant professional relationship. The property manager should know how to evaluate, evict bad tenants, mortgage calculator, and terminate leases, among other duties. A good grasp of these rules and guidelines is the best way to execute your work as a property manager.
2. Taking Care of Repair And Maintenance Work
Ensuring the property is maintained in good condition is perhaps the most essential work of a property manager. To ensure the property remains habitable and safe for living, the property manager must attend to requests for repair or maintenance work within the required time. Everyday repair tasks include repairing leaking water pipes, removing garbage, and managing and exterminating pests or rodents on the property.