One of the crucial decisions to make as a property owner could be whether to hire the services of a property management agency. While some investors cannot do without a property manager in place, others still struggle to free themselves from the ‘do-it-yourself’ mentality that hinders them from bigger accomplishments. As it turns out, one thing is for sure: the benefits of hiring a real property management firm far outweigh the shortfalls.
It is fair to argue that hiring a property management firm has associated costs that one has to absorb, but this is not a disadvantage, but rather a worthy investment. This is because their involvement can significantly grow your bottom line by maintaining and managing your properties.
Responsibilities of a property management company
While the roles of property management firms may vary widely, most tasks are standard across the numerous property types.
1. Rent responsibility
Property managers are charged with addressing rent issues. They understand the market in which your property is located as well as the ideal client to attract. Therefore, they can set the initial rent levels that tenants agree to. They also ensure optimal cash flow through firm collection dates and enforcement of late penalties.
Furthermore, it is common for managers to adjust rent amounts. They can increase the levels based on the year’s predetermined percentage or decrease the amount whenever it is deemed necessary.
2. Condo Syndicate Management
If you own a condominium, T.R.A.M.S will benefit you in many ways. Such as preparing budgets and monthly financial statements and planning the annual general meeting. They also collect the condominium fees, prepare all checks, and perform any syndicate obligation. In terms of maintenance, a site manager will be there to visit the property every week and answer tenants’ and co-owners’ concerns.
For first time homebuyers, boomers looking to downsize, millennials searching for a variety of amenities without the responsibility of upkeep, condominium buildings are your answer if you are looking out for an investment as the demand for land and housing increases and the prices are soaring. Have you ever enjoyed the feeling of living in a hotel loaded with amenities right from bells and whistles, indoor and outdoor pools, garages, social rooms, rooftop garden spaces for entertaining and everything in between? Would you want the same feeling in your home? As technology advances and innovative ways of doing business grows, developers keep surprising us with taller buildings that carry all the look and feel of exquisite hotels. Condo tower developers have especially mastered and bettered their craft in honing small spaces and making them a reality that combines intelligent living with luxury. Condominium living replicates that in every bit. It is now like living in a hotel, except you own your own space.
Condo living however, comes with its own share of maintenance of gardens and common areas. It also includes seasonal snow removal, cleaning and general upkeep.
A monthly fee allows a management company to take care of:
- Owners/residents’ relationship.
- Overall maintenance.
- All contract management.
- Accounting & bookkeeping.
- Collection of fees.
- Overall well-being of the building.
Purchasing a property of any size is a considerable investment. When you hire a property management company, you not only protect the condo owners’ investment, but you also increase the value of the building.
3. Rentals management
From increasing occupancy and lowering tenant turnover to identifying and qualifying tenants, a rental manager has a lot to offer. They are in charge of rent collection and facilitate resident screening. Furthermore, they are responsible for any repairs and maintenance, as well as the preparation of your property for lease. Property owners are also relieved from the role of enhancing tenant relations and communication planning.
4. Legal management service
During a dispute or eviction, the real property management company is always the first in line of contact. The same applies to the general legal functioning of your property. This is among their key roles since they understand all the legal processes involved when screening for tenants, terminating leases, dealing with security deposits, safety compliance, and eviction. A reliable property manager must have a vast understanding of the relevant laws and be able to handle their responsibilities in the best and legal methods.
5. Maintaining financial records and managing budget
A property management firm supervises the building’s daily activities, and they are responsible for the maintenance of the budget and keeping detailed records. After a yearly budget is confirmed, the management firm will negotiate prices for needed repairs and maintenance.
6. Supervising responsibilities
If the property has other employees, such as security personnel or landscapers, the property management firm will ensure that each employee performs their respective roles. In addition, they can set the appropriate salaries for each category and let go non-performers.
With a trustworthy management company that fits your property, you can increase your bottom line with no extra effort.