Property management

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Property management is the operation of commercial, industrial and/or residential real estate. This is much akin to the role of management in any business.

Contents

Roles

One important role is that of liaison between the landlord and/or the management firm operating on the landlord's behalf and tenant. Duties of property management include accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants. In exchange for the service they provide, property management companies charge landlords a percentage of the gross rent collected each month.

Property managers may manage construction, development, repair and maintenance on a property. Property manager relations with tenants gives a face to the landlord and provides a buffer for those landlords desiring to distance themselves from their tenant constituency.

There are many facets to this profession, including participating in or initiating litigation with tenants, contractors and insurance agencies. Litigation is at times considered a separate function, set aside for trained attorneys. Although a person will be responsible for this in his/her job description, there may be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with applicable municipal, county and state laws and practices.

Property management, like facility management, is increasingly facilitated by computer aided facility management (CAFM).

Licensing

United States

Most states require property management companies to be licensed real estate brokers if they are collecting rent, listing properties for rent or helping negotiate leases[1]. A property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker. Most states have a public license check system on-line for anyone holding a real estate salesperson or real estate broker's license. A few states, such aa Idaho and Maine, do not require property managers to have real estate licenses. Washington State requires Property Managers to have a State Real Estate License if they do not own the property. Owners who manage their own property are not required to have a real estate license, See the State Laws [2] however they must at least have a business license to even rent out their own home.

Generally, property managers who engage in only association management need not be licensed real estate brokers. In Connecticut, however, a broker's license is required. Some states, while not requiring a real estate license, do require association managers to register with the state.

Australia

Every state of Australia has different licensing requirements. To be able to trade as property management company the company has to be licensed with a principal or licensee in charge. Each staff member of the company has to have a certificate of registration.

Commercial Property Management Services

"A property management service handles the day-to-day needs of your property, minimizing vacancies and maximizing your bottom line. They will market your property, make your property accessible through websites, thorough screen potential tenants so ones gets a quality tenant to fill their vacancy.

Property managers have the knowledge to help the customer optimize their investment. They are familiar with state and local laws and Homeowner's Association guidelines. Help can also be provided to evict a problem tenant."

Professional Designations

Building Owners & Managers Institute International (BOMI) offers industry-standard designations that certify the training associated with Property Management:

  • the Real Property Administrator (RPA)
  • the Facilities Management Administrator (FMA)
  • the Systems Maintenance Administrator (SMA)
  • the Systems Maintenance Technician (SMT)

The Institute of Real Estate Management (IREM)

  • Certified Property Manager (CPM)
  • Accredited Residential Manager (ARM)
  • Accredited Management Organization (AMO)

The National Association of Residential Property Managers (NARPM) has the following designations:

  • Residential Management Professional (RMP)
  • Master Property Manager (MPM)
  • Certified Residential Management Company (CRMC)
  • Certified Support Staff (CSS)

National Apartment Association (NAA) has the following designations:

  • Certified Apartment Manager
  • Certified Apartment Property Supervisor (CAPS)

State recognized and (sometimes) required licenses: Florida - Community Association Manager (CAM)

Software

Property Management Software continues to grow in popularity and importance. As it decreases in price, smaller companies and amateur property managers are able to function with the same best practices and efficiency as larger companies. Online Asset Management Software (OAMS aka Online Property Management Software) is a major cause of the crash in the price.

Other uses

The term property management is used to describe the practise of managing capitalized assets that are not real estate in nature, such as equipment and consumables. This is particularly the case in some post-secondary institutions, federal agencies and organizations that must manage government-furnished property, such as government contractors.


References

Property Management Services http://www.renttoday.us

Further reading

  • Rhodes, Trevor. American Landlord: Everything U Need to Know... about Property Management. 384 pages. McGraw-Hill, January, 2008. ISBN 0-07-154517-4.

External links

Retrieved from "http://www.wikinvestor.com/wiki/Property_management"
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