The property manager has many responsibilities. This specialty involves the management of homes, duplexes, office complexes, industrial complexes, full shopping centers, apartments, condominiums, and other structures by brokers in the real estate industry.
A comprehensive understanding of the knowledge and principles associated with the field is essential for all that elect to work within the profession.
Whether you are just starting out in the property management field, have been conducting work in this field, or are simply intrigued by this field, you will benefit from the information contained within this guide. Continue reading to learn about the roles and responsibilities of those that specialize in property management.
General Knowledge
To be an effective property management professional, one must have a level of knowledge in several distinct areas. The first – of course – pertains to rules, policies, and laws that involve fair housing and rental units. This type of specialist should also understand contracts, leases, and agreements and know how to incorporate these legally in their business dealings.
It is equally important to be well-versed in basic business administration, advertising and marketing, credit and financing, maintenance, repairs, real estate taxation, and equal opportunity laws. There are many organizations that specialize in assisting those with their property management endeavors. These include Residential Property Managers and The Institute of Real Estate Management.
Property Manager Types
There are three distinct types of property managers – resident manager, individual property manager, and the individual building manager. The following provides a brief description of each of these property management types:
- The Resident Manager – This property management professional is typically employed by a broker that specializes in real estate, an agent manager, or an owner of a property. Their job is to oversee the management operations of an apartment building either on a part-time or full-time basis.
- The Individual Property Manager – This property management professional is a specialized broken in real estate that is required to manage one or even more than one property for an owner. These professionals may be self-employed, part of a firm, or part of an organization in the real estate industry. In some instances, the individual property manager may also act as an asset manager.
- The Individual Building Manager – This property management specialist typically manages only a single property. The professional is typically hired directly by an owner, but, may also be employed by a real estate firm or another property manager.
Specific Functions
There are several different functions of a property manager. In some instances, the individual may act as a salesperson or a business administrator. In other instances, they may be required to engage in decorating a property, bookkeeping tasks, key keeping, conduct security tasks, operator telephones, or collect monies from tenants.
It is common for these professionals to act as maintenance officers, take complaints, organize projects, and communicate via verbally, written, and electronically.
We would like to share the very specific responsibilities that nearly all property managers engage in. They are as follows:
- Advertising and Marketing Rentals
- Establishment of Rent Schedules Consistent with Economy
- Creating and Completing Maintenance Schedules
- Ensuring Completion of Necessary Repairs
- Obtaining Appropriate and Required Licensure
- Merchandising and/or Decorating Rental Units
- Organizing and Implementing Payroll System, If Required
- Developing and Implementing Relations Policies
- Record Maintenance
- Conducting Credit Reports
- Conducting Background Checks – Civil and Criminal
- Preparation and Proper Execution of Agreements and Leases
- Auditing
- Bill Paying
- Modernization and Alterations of Property
- Inspections
- Analyzation of Market Conditions
- Insurance Payments
- Compliance with Laws – Local, State, and Federal
Rent Scheduling and Implementation
One of the most important tasks associated with property managers is the scheduling and implementation of rent. This is a process that may prove to be a bit challenging as it requires a comprehensive analysis of the neighborhood where the property is located. In essence, it also compares the building in the region in order to obtain realistic values for that specific economy. All values associated with setting rent must be assessed in an objective fashion. Immediately following these assessments, the following analyzations must also be considered:
- Neighborhood Character
- Amenities of Location
- Population
- Transportation Availability and Methods
- Evaluation of Recreational Activities, Religious Practices, Shopping Venues, and Educational Facilities
- Local Industries
- Job Availability
- Trends in Growth
- Income Range of Potential Tenants
- Community Growth
- Housing Market Conditions
Potential Earnings of Property Managers
Property management professionals may charge a flat fee for their services, a percentage of the amount of rent that is charged each month, or even a unique collaboration of both of these.
In most instances, percentage rates run anywhere from 3% to 20% of total tent obtained by the property owner – depending on the type of property that is involved.
For example, on large duplexes, a property manager may elect to charge 3%. On residential units, the property manager may elect to charge up to 20%. If the individual manages large industrial and/or commercial units or even units that specialize in short-term occupancies, they may elect to charge in the range of 50%.
Many earn money by engaging in special tasks and activities such as renewing leases, supervising major repairs, and/or conducting legal activities on behalf of the property owner. The earning potential for property management professionals is extremely high due to the immense demands of this real estate professional.
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