Managing the rental property is daunting, especially when you have multiple. You buy a property, rent it out to tenants, and pocket their rent payment as income. It sounds like a fantastic deal. Right?
Unfortunately, it’s more complicated. A rental property, no matter the area and size of the building, is a serious time commitment. You have to stay on top of general maintenance, listing to find tenants, advertising the property, and many more. However, it seems pretty tough to manage with numerous properties and regular jobs.
In this post, you’ll learn how rental property management companies can help you deal with this problem.
What is Rental Property Management?
Rental Property Management is a group of professionals that undertakes all the responsibilities of the landlord’s property. The company takes charge of the constant maintenance of the property to upkeep its worth and rents it to generate income. Property Management companies are responsible for overseeing and managing different industrial, commercial, and residential real estate properties on behalf of the owners. Generally, the property managers are the ones who take on all the day-to-day responsibilities, including security, upkeep of the property, and maintenance issues.
Types of Rental Management
As everybody knows, property comes in different types, and so do property management companies. The selection of rental property management companies can differ on the basis that some of them deal specifically with a particular property type. In contrast, others have specialized in different property types.
Here are the types of rental property management:
- Residential Property Management
- Commercial Property Management
- Industrial Property Management
- Special Purpose Property Management
Residential Property Management
This type of property management company is hired for real estate that has long-term residents. Rental companies essentially role-play for managing single-family apartments, detached homes, vacation rentals, manufactured housing, multi-family homes, townhomes, and condominiums.
Commercial Property Management
Whereas commercial property owners have different needs from those, who own residential property. These concern real estate owned by businesses or real estate rented. Mostly the clients are business owners looking to move their company into an available unit. It can apply to public accommodations like hotels, office properties like real estate brokerages or doctor’s offices, co-working spaces, hotels, malls, or shopping centers.
Industrial Property Management
Industrial property management includes industrial facilities and manufacturing. These need you to manage strict building regulations and codes. The properties that come under this category are automotive assembly, steel mills, food packaging facilities, and warehouses.
Special Purpose Property Management
Various property types don’t fit neatly into the above mentioned categories but require management nonetheless. These include sports arenas, resorts, worship places, senior care facilities, theaters, and resorts.
Roles and Responsibilities of Rental Management
Generally, rental property management companies are hired when the landlords or real estate investor wants to outsource some of their rental property’s daily responsibilities.
Here are some tasks of property management companies:
- Marketing Rental Properties
- Supervising Employees
- Undertaking Property Maintenance
- Managing Tenants
- Collecting Rent from Tenants
- Responding to Tenant Complaints and Disputes
Marketing Rental Properties
Marketing the rental property is one of the primary responsibilities of the property management company to handle the marketing side of the rental properties. It includes clicking internal and external pictures of the property, posting, and advertising them on various social media/marketplace sites. Additionally, it includes writing a detailed description explaining property features, advantages, and proximities of public facilities like shops, schools, and hospitals.
Many companies hire regular employees like cleaners, security guards, and gardeners. The property managers/companies are responsible for hiring and supervising them. They may advertise the available positions, interview applicants, and check their backgrounds. The property manager regularly observes the employees at the site, and their performance is the ultimate decision to continue them at work or get them terminated.
Undertaking Property Maintenance
The most crucial thing a property management company does is upkeep the property. They check the property on a daily basis and ensure that all the necessary maintenance and repair work gets done on time. It includes removing trash, repairing pests, water leakage issues, cleaning places, exterminating pests, and weather-related damage.
Along with the marketing, the property management company is also responsible for showing forthcoming tenants and screening them to ensure they are the right people for the property. This process includes clients’ details and financial information like work address, phone number, and bank statement. Moreover, the property management company handles tenant move-out and evictions.
Collecting Rent from Tenants
Being a pro in their industry, the property manager can help you get the best rental value for your property comparatively. They set the rental amount, which flexes concerning the property owner’s demands, the current market rate, the property location, and the property’s key benefits and features. Companies decide whether the rent amount is negotiable or fixed and state it clearly in the rental lease agreement and payment terms.
Responding to Tenant Complaints and Disputes
Managing the property involves handling and resolving tenants’ complaints as much as possible. Property management is meant to address the concerns within a set timeframe and take the necessary action.
In conclusion, it depends upon you to make a decision regarding managing your property that fits your lifestyle and needs. You can manage the property on your own or choose rental property management companies to assist you in managing your day-to-day property task.