Responsibilities in Property Management
A property management company has four principle areas of responsibility which are:
Financial and Marketing
Occupancy and Tenancy
Administration and Risk Management
The property manager, as the owner’s representative is a stakeholder, and party to optimizing the return on the investment in the property by efficiently executing the four prime areas of responsibility.
The property management company is responsible for appropriate maintenance of the property, keeping it occupied, collecting rents, maintaining records, and carrying out improvements within the allotted budget.
Property management is a challenging assignment. Many real estate professionals have ventured into it and backed out swiftly after a more detailed appreciation of what it entailed.
Financial and Marketing: Property management requires a detailed understanding of financial accounting including budgeting and control of operating expenses. This forms the basis of setting an appropriate rental rate commensurate with the prevailing market. The manager must have a detailed knowledge of the area and comparative rentals. Advertising strategies and promotional programs may be recommended if they are likely to maximize rent and increase occupancy. Periodic financial reporting to the owner is critical to the relationship.
Occupancy and Tenancy: The manager must have a full appreciation of the tenant’s needs and respond to requests. Rents should be collected in a timely manner and tenants’ activities monitored to ensure that they do not violate the lease agreement. All amenities should be maintained and be commensurate with those of equivalent properties in the area. Part of the manager’s function is the eviction of tenants should they violate or transgress their boundaries or fall behind in the rent.
Administration and Risk Management: The manager is required to maintain all files and records related to the property and comply with reporting requirements as required by local, state, and federal governments. Records maintained should be meticulous which should include tenant activities and interaction for liability reasons.
Facility Management: This covers the management of outdoor areas and structures and also includes maintenance of plumbing and electrical, landscaping and the entire building and appliances it contains, in fact everything connected to the physical property. The property manager has to know local repair companies and contractors and be conversant with rates. The manager should ensure that all work is carried out to the desired standard. A budget should be made for short-term and long-term improvements to ensure the property does not decline and is able to maintain its rental value. A well-maintained property is an assurance of tenant-retention.
Anyone looking at property management as a business option should understand what is involved and be confident of being able to meet the challenges it poses. Property management is not for the faint hearted and far more demanding than selling real estate.
A Leading Rental Management Company
Talley Properties of Charlotte, NC, a well-established and much requested company has been in the real estate business for over three decades now. However, its true expertise lies in management of residential and commercial rental properties. The high level of professionalism and efficiency it has displayed has enabled it to expand geographically and it now manages rental homes and condos in and around the counties surrounding the Charlotte region.