Wednesday, August 20, 2014

Property Management: Learning the Basics

There’s more to being a landlord than just earning money off your properties. Apart from collecting rent, your responsibility as a landlord is to handle repair and maintenance of the property as well as advertising your property to potential tenants. Sound like hard work? It certainly is, but there is a better way to manage your property.

What is Property Management?

Propertymanagement is defined by Investopedia as the “administration of residential, commercial and/or industrial real estate”.  Property management usually involves managing of properties owned by another party or entity. Managed properties can either be a residential, commercial or industrial.

What does a Property Management company do?

Property management companies are responsible for all aspects of managing one’s property from advertising to tenant placement. They also handle rent collection, property maintenance and repairs, tenant complaints, and even evictions. The goal of the property managers is to increase the property value while generating income.

When should you hire a Property Manager?

Although there are several advantages of hiring property managers, it is an investment that should not be taken lightly. There are several factors you need to consider before you dive into it. One factor is the number of properties you manage/lease. Imagine managing more than properties on your own compared to having a group of property managers handling them. This means that you can earn from all of your properties all at the same time. Other factors to consider include your proximity to the properties, time availability and experience in managing properties.

How to choose a Property Management company

Hiring a property manager requires due diligence and research. You can check online for different companies available in your area. You can also ask your friends and family for any recommendations. Regardless of what your method for finding one, make sure that you choose a company with enough experience in the field and the right credentials. Be sure to check their website, if available, and contact them directly to know more about their services. 

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