While the duties of a property management company will vary depending on the specific terms of the contract they have with the property owner, they do more than collect rent from tenants. Property managers in Angwin as well as other areas know exactly what’s involved in the process, and they’ll help you understand as well. Do you want to know what is Property Management? We will answer this questions in this post.
What is Property Management?
In broad terms, the management of property means to operate and control real estate whether there are tenants or not. When you add in the fact that you’re controlling the home of other human beings, it becomes a lot more complicated.
Maintenance and Repairs
A property management company will have its own workers who are employed to inspect and make note of all the maintenance issues that arise daily as well as make repairs. In some buildings, inspections can take the bulk of the day especially when there are multiple units and buildings. maintenance might include exterminating, checking for water leaks, removing trash from the common areas, painting touch ups and landscaping upkeep on the grounds.
Repairs are an issue when tenants call in to report them or a worker sees a repair while they’re surveying the building and the grounds. Repairs could include broken railings, leaks in an apartment unit, a broken light in a hallway or a hole in the wall. Workers on the property manager’s payroll will fix the problem or they will bring in the right vendor to repair the issue promptly. Prompt repairs and maintenance of the building is what keeps tenants happy, so they’ll stay in the units.
Advertising and Screening for Tenants
One of the main reasons landlords hire a management company is because they’re able to advertise and screen for good tenants. Anyone can find tenants. It’s vital to find the best ones that will pay their rent on time and keep the apartment clean and well-maintained.
Along with advertising in the best places for the right tenant, they have the experience to know what the property needs to attract the very best tenants. In fact, they might suggest that the landlord makes some improvements to the property to bring in good candidates.
Screening tenants ensure that there are only responsible renters in the apartments. It’s more than doing a background check on the candidates. It includes credit checks, landlord verifications, criminal checks and a consistent process for screening. They’ve seen hundreds of candidates, so they’re able to quickly weed through all the applications to find the best potential tenants.
Budgeting and Maintenance Records
You should have a monthly budget for the repairs that are needed to the property. It should also include emergency funds for things like leaks and dangerous structural problems that can occur. The management company should be keeping good records to account for any money taken out of that budget. A landlord doesn’t want to be consulted on each small repair, but major ones might require a consultation.
Along with repair and maintenance records, the property management company in Angwin property management will keep meticulous records on inspections and maintenance requests. It will include complaints, insurance costs, vendor costs and records of all transactions.
Managing Relationships with Tenants
After bringing in tenants to rent the apartments, there still more to be done in the tenant relationship.
Every month, the management company will deal with collecting rents. This also means that they must stay on top of all the tenants in case any of them are late. They can apply late fees and other penalties on the tenant. They’re basically the enforcer of the landlord’s rules. Along with penalties, they might advise the landlord to reward the ones who are always early and cause no problems as a tenant.
It’s vital for tax and accounting purposes to have strict records kept about every transaction. It also helps when there are disputes with any of the tenants to have a record of every complaint and phone call between the company and the tenant.
They handle the leases and security deposits as well as evictions. This can be the toughest part for a landlord to deal with in their property. When a tenant doesn’t pay rent or is in violation of the lease, they must be removed from the property. There are certain procedures and laws that govern evictions, and they must be strictly followed.
When a tenant moves out of the property, there are certain tasks that the management company has to do. They must check the unit before determining the portion of the security deposit to be returned. After the tenant moves, the unit must be cleaned and repaired before it can be rented again. This turn over of the unit will cause supplies and money to be used out of the budget, which should be accounted for with paperwork.
While all of these things can be done by a management company, someone wondering “what is property management?” will find that the answer isn’t simple. A landlord might only want someone to find good tenants or turn over the units when a tenant has been evicted or moved. Property management has a massive list of tasks that can all be done by the landlord, the management company or a combination of the two.