subject: Property Management - What You Should Know [print this page] The operation of real estate, be they residential, commercial or industrial is called Property Management. This would include taking care of the manpower, systems and processes needed to manage acquired properties from the acquisition to its maintenance, accountability, control, disposition and utilization. That is the definition for Property Management.
Some of the duties that are usually handled in Property Management would entail operating on the landlord's behalf and meeting the tenant to represent the landlord. Furthermore, a property manager would be collecting rent, handling maintenance of the real estate, and would be able to serve as buffer between the client and his tenant if the client so wishes.
Accounting and managing the finances of the real property and acting as the client's representative when dealing with contractors, insurance agencies and tenants are some of the responsibilities required of this profession. Issues with regards to litigation are also handled by the property manager, but are ideally dealt with an attorney with expertise in that area. This is why property managers normally have attorneys under them and since property managers most often deal with legal issues that would most commonly include non-payment, harassment, evictions, and other such occurrences that are commonplace in Property Management.
Property Management services will handle your real estate and they would work to maximize yours and their profit through a number of methods. Such services would also market your property and do thorough screenings on prospective tenants to mitigate the chances of a tenant being a problem in the future. This is especially ideal for those who indulge in foreign investment in real estate to take advantage of, since they would not have easy access to the properties they had purchased and would need someone else to do so for them. These services would usually charge a fee of about 10% of rental income for your property. This is a very reasonable fee, given that you are saved much time, effort and worry.
Just be sure that the Property Management service agency you choose to hire are actually reliable and fulfill the requirements for this profession of the state or country your property is located at. Licensing is usually required in most countries, but requirements to practice Property Management vary from state to state and country to country. You will have to do your research first before actually entrusting one with your property, since you may very well lose much of your investment and may even get your property in trouble.
To certify the training for Property Manager, the Building Owners and Management Association or BOMA have made a list of industry-standard designations. Real Property Administrator or RPA and Facilities Management Administrator or FMA are a few of these titles used to certify a trained property manager. Be sure to look for these credentials in the real estate agency or individual you will hire to do your Property Management for you and you will have further protected yourself from problems arising from an unreliable property manager.
by: Martin Sejas
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