Updated on October 11, 2021
Real Estate Property Management
Commercial real estate property is either owned by an individual or an entity, such as a business. Most owners hire a property management firm to oversee all aspects of the property. These firms have specialized knowledge in residential and commercial Property Management. Most residential property managers work in conjunction with property owners, conducting market surveys and interviewing tenants to obtain demographic information about the neighborhood and other property features.
Residential property management usually works in phases. During the introductory phase, a property manager will conduct walkthroughs of properties to be reviewed. They will observe day-to-day activities at the properties, check for existing conditions that need improvement, and speak with tenants to discover any issues that may concern them. This initial phase is crucial because it provides the property managers an initial look at the property and establishes a rapport with tenants.
After the walkthrough, the property manager will review all repair needs and make necessary repairs. The property manager will also speak with landlords to ascertain if the rent is being paid on time. If rent is being paid on time, the property manager may enter into a contract with the landlord to maintain vacant units and rent to future tenants. Once all repairs are completed, the property manager will make sure all signs pointing to vacant units are removed, such as broken doors, landscaping, and fencing. Vacant rental properties pose a significant problem because they waste rental revenue.
Many landlords, realizing that their vacancy period is quickly approaching, will try to sell their properties quickly to minimize expense. Unfortunately, many of these short sales do not go through the required legal channels, and therefore the sellers are left with unpaid property taxes and lease arrears. Short sales have a negative impact on the credit of both the seller and the buyer. In addition, residential property management companies can help buyers by acting as a go-between for the buyer and the real estate agent.
Most real estate agents locate and list properties, but sometimes problems arise between the buyers and the sellers. For example, a tenant may move out of the premises while the landlord cleans up for the next season. Before a new tenant moves in, the real estate agents must review all rent documentation and reconcile discrepancies between the name of the landlord and that of the tenant. The landlord may be listed on the lease as the Tenant’s Property Manager. In this situation, the tenant is legally permitted to apply for possession of the premises, but without the consent of the owner. Once possession is taken, the tenant is responsible to pay for any outstanding balance.
Property owners have a legal obligation to maintain and repair the premises and to notify the tenants of any problems which arise. Property owners may also be held liable for damage that is caused by tenants, or which is not the responsibility of the landlord. Real estate property managers can assist landlords with these matters and ensure that proper procedures are followed. When a tenant moves out, they must move their personal items and any furniture to the address provided by the property manager. If a tenant does not pay rent for three months, the landlord has the right to enter the premises and recover unpaid rent.
Property Management involves a variety of processes and responsibilities, and landlords should be familiar with them in order to provide the best service to their tenants. A real estate property management company can advise a landlord on the right processes to take in order to protect their investment and give the tenant peace of mind. Property management can be a daunting task, but many landlords find that when they are prepared, it increases their chances for success. This makes good business sense for any real estate property owner.