All functions can be grouped into four primary spheres of responsibility: administration, finance and marketing, tenant and occupancy, and facilities operations. Here is the list of the tasks property managers commonly perform for owners of the rental real estate. Proprietors may need only some of these property management services.
PM companies evaluate the property to set an appropriate rental rate and prepare the object for rent. This process includes preparation of documents describing interior and exterior in details. As the primary task of any PM is to provide high ROI, PMC may recommend some improvements to maximize monthly rent. PM also provides the preliminary analysis of local rental rates. Comparison with the local market is a necessary step for evaluating any real estate object. Sometimes PM also helps in formulating policies concerning having pets, allowing smoking, etc.
The next step is marketing. This includes such activities as developing a marketing strategy, carrying out promotion campaigns, creating and placing ads in various media sources – specialized Internet portals, newspapers, TV, etc. PM company’s task is to maximise occupancy and rental rates, so PMs contact with realtors and leasing agents and provide detailed information about the property to potential tenants. PM organizes meetings with prospective tenants to show the object, provides them with rental applications and collects them back.
Preliminary work with tenants includes their screening and selection. PM company performs a background check to verify their identity, income, credit and rental history, etc. Property manager estimates potential tenants according to specific criteria and informs tenants whether their candidacy was approved or rejected.
When tenants are ready to move in, PM draws up leasing agreement. Rent collection (including first month’s rent and security deposit) is another part of property management services. This involves such delicate issue as violators and late payments.
If an eviction is needed, PM completes relevant documents to initiate the process and represents the owner’s interests in court. Managers usually assist officers of the law to remove the tenant from the property unit. PM company also provides legal support including advice in case of a legal dispute or litigation.
Regular inside and outside inspections also belong to PM’s duties. These inspections aim to check if any repair is needed, settle possible hazards or violations, etc. PMs then send periodic reports on the condition of the property based on their findings to the owner.
Financial services are one of the most important and requested ones. They include accounting, making payments on behalf of the owner, maintaining historical records, making regular reports, documentation, etc.
PM company performs physical management of the property – its overall maintenance and repair, including outdoor areas. Facilities operations include mechanical, electrical and plumbing works, landscaping, roof and walls maintenance, and much more. The manager should supervise the contractors and control the quality of all repair and maintenance activities.
When the contract is over, and tenants move out, PM should inspect the unit and make a report on the property’s condition. A copy of this paper (with estimated damages, if any) should be provided to the tenant.
This is just a suggested list of property management services. The scope of PM companies may include some other activities or exclude something – all depends on the specific terms of a particular management contract.
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