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Property management company- responsibilities

Property management company- responsibilities
Property management company- responsibilities

What does exactly property management mean?

Property management:

is the operation, control, maintenance, and oversight of and physical property. This can include residential, commercial, and land real estate. Management indicates the need for real estate to be cared for and monitored, with accountability for and attention to its useful life and condition considered. This is much akin to the role.

Property management is also the management of personal property, equipment, tooling, and physical capital assets that are acquired and used to build, repair, and maintain end item deliverables. Property management involves the processes, systems, and manpower required to manage all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.

An owner of a single-family home, condominium, or multi-family building may engage the services of a professional property management company. The company will then advertise the rental property, handle tenant inquiries, screen applicants, select suitable candidates, draw up a lease agreement, conduct a move-in inspection, move the tenant(s) into the property and collect rental income. The company will then coordinate any maintenance issues, supply the owner(s) with financial statements and any relevant information regarding the property, etc.

also read: Best Health Insurance Companies in India

In India, there is no statutory regulation of property management companies, real estate agents, or developers. In 2013, a Real Estate Regulation and Development Bill was passed by the Union Cabinet but has yet to take effect. The bill seeks to set up 3 regulatory bodies in the country. The Real Estate Regulation and Development Bill was passed by the Union Cabinet in early 2016 and this is expected to bring about a sea change in the management of the real estate in India.

What is meant by a property management company?

It basically means a company that is set up to manage a group of properties, a unit trust, an investment fund, and many more. It is also known as a management company is an organization set up to handle a certain pool of resources owned by a given fund, normally managed by a team of experts. These companies provide many services for the fund like accounting, business valuation, market research or investment, and tax advice, among others.

A Management Company is a party to certain leases or transfer documents. The company’s role is to be responsible for the management of the service charge and the delivery of management and maintenance services at the development.

Asset management companies are colloquially referred to as money managers or money management firms. Those that offer public mutual funds or exchange-traded funds (ETFs) are also known as investment companies or mutual fund companies. Such businesses include Vanguard Group, Fidelity Investments.

Management companies deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.

Asset Management companies manage multiple mutual fund schemes where investors invest their money in order to earn returns. This money is invested in various financial instruments such as equity securities or debt securities. The formulation of the investment portfolio is done by the AMC.

Duties of property management companies

The services noted in the will determine the services your property manager will carry out on your behalf. In general, usually, a property manager’s duties and responsibilities cover aspects such as marketing your property, screening suitable tenants, and handling your rental income and maintenance expenditure.

Responsibilities of property management companies

our property management agency’s responsibility, at the most basic level, is to prioritize your best interest when making decisions for your house or apartment. More specifically, the roles and responsibilities of property managers include:

1.Setting the rent

One of your property manager’s main responsibilities lies in helping you earn the best return on your real estate – by maximizing your rental yield, you’ll be able to enjoy higher cash inflows.

To do this, a property manager will carry out and analyze the rental rates in the market. This will prevent you from charging inflated rates that reduce the appeal of your property among potential tenants. If you set the rent too high, your property is more likely to remain vacant, which means that you’ll potentially be losing out on weeks’ worth of rental income. Of course, charging too little is also unideal.

The benefit of having a property manager is that they’ll save you the trouble of setting inappropriate rental rates. They constantly monitor market conditions and offer you timely advice on raising and lowering rental rates.

2.Collecting rent and chasing any arrears

A property manager will ensure that an efficient system is in place to collect the rent from tenants. If the tenant is late on payments, the property manager will also follow up to ensure your rental income isn’t unnecessarily delayed.

3.Finding good tenants and long-term lease agreements

While chasing up arrears is part of a property manager’s job, the key is to solve the problem before it becomes a problem. A great property manager will have a rigorous in place to find you, reliable tenants, from the outset.

In a survey we conducted with 200 investment property owners, we found that 21% of owners listed “finding good tenants” as one of their top three challenges. Interestingly, an additional 11% of property owners were dissatisfied due to low-quality tenants.

However, as specialists in the industry, property managers have the resources to find you high-quality tenants who both respect your property and pay rent on time. We’ll cover this in more depth in section 2 of this article.

4.Property maintenance

Part of owning an investment property involves ongoing and repairs to ensure that your property is in tip-top shape and your tenants are happy. A great property manager will not only maintain efficient communication with your tenant to make sure they’re on top of these issues but also liaise with a network of trusted technicians and tradies to ensure you’re getting the most competitive.

5.Conducting routine inspections

A property manager will inspect your property on a regular basis and keep you up-to-date. These can help you identify any upcoming short-term repairs and long-term capital expenses that need to be addressed, which is incredibly helpful when you’re

6. Paying your bills

All your property-related payments can be handled by a property manager. This includes settling utility and water bills, along with council rates and strata levies. The payment of these bills is often adjusted from your rental income.

7.Administration

Being organized is key to staying ahead in all your property affairs. This can take a great chunk of your time, but a property manager documents all the information relevant to your rental property for you. This includes record-keeping, maintaining leasing agreements, postage, handing over the key to tenants, and preparing annual statements.

8.Communication

No property owner enjoys receiving text messages from tenants about 8 pm on a Sunday night. Maintaining these kinds of communications can be a pain for owners, but it’s something that a property manager can help with.

A great property manager will maintain efficient communication and is responsive to both tenants’ and owners’ requests. They will ensure that tenants are happy by looking into their complaints and concerns.

9.Prepare for tribunal proceedings

A property manager can represent you at the tribunal if there are disputes with the tenants that cannot be resolved with non-legal mediation. They’ll support your case with evidence such as records of late payments, photographs of any damages to property, receipts, and copies of letters, and any other correspondence. This will help you to present a better case at the tribunal hearings.

10. Stay up-to-date with tenancy laws

It’s important to know the current laws and regulations related to rental property, in case either party outsteps the legal boundaries expected from a landlord-tenant relationship. For this reason, a property manager will stay on top of legal tenancy developments while keeping the owner up-to-date.

also read: The Project Management Life Cyclehttps://waytohunt.org/the-project-management-life-cycle/

11. Give you confidence in the quality of their service

While this isn’t something that all property managers can provide, it’s no doubt something that the best property managers treat as part of their duties and responsibilities. A great property manager will make sure to keep you in the loop about everything that’s going on with your property – not just if something has gone wrong.

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