Property management

From ArticleWorld


Property management is the term used for the management of real estate, including collection of rent, maintenance of the property and keeping accounts for a commission. This commission is usually a percentage of the gross rent collected from the premises, in addition to marked-up repair costs. The gamut of duties attached to property management include - besides the above - payment of expenses and provision of services.

Liaison

Property management acts as a bridge between the landlord and the tenant. The extent of management and responsibility for management between landlord and tenant depends on managers since landlords may delegate many of their duties to managing agents.

Work of Management

The basic aim of property management is to make profits out of investment in real estate. Its other functions include managing land and storage as well as living spaces within premises, and acquiring new facilities or carrying out constructions and alterations. Property management also involves supervision of staff employed for services as well as negotiations with tenants or prospective clients. It also includes the functions of managing, maintaining and protecting the property of the landlord.

Subject to limits placed by state jurisdictions and the nature of contract, property management may extend to advertising the properties or disposing of them on behalf of the landlord, and even taking care of any litigation with the tenant. Thus, property management also takes care of all the aspects that might have a negative impact on the gains of the landlord.