Property Management

If you have limited knowledge of real estate or have owned one for so long, property management is the key to increasing your expertise. It allows you work with other owners like you who want to go into this business and rent out their properties for a period of time. Property managers build or solidify existing relationships with stakeholders in the industry and these include other real estate owners, investors and individuals interested in these kinds of property. Property managers also look for clients who will buy and sell these properties in the present or in the future. They also understand the local laws and finances when it comes to real estate within a particular area.

Roles and Responsibilities of a Property Manager

A property manager is one who acts as an intermediary between the owner of a property (landlord) and those who wish to lease (tenant). If you decide to be a property manager, these are some of the roles and responsibilities to be carried out when doing a real estate transaction for rental properties:

• Vacancies in the marketing sector
• Showing properties to interested/proposed tenants
• Sorting, collating, collecting and processing rental applications
• Tenant screening and approving prospects
• Signing Lease(s)
• Move-in and move-out procedures
• Maintenance management
• Tenant relations management
• Collecting Rent
• Procuring and processing security deposits
• Observing Federal, State and local real estate and landlord-tenant laws

Getting a Property Management License

Before getting your property management license, there are several things you need to know. The first thing is understanding the laws of the state in which you own your real estate property or want to operate your real estate or property management business. If you must manage rental property, it must be within the confines of these laws and requirements. Laws vary from state to state and there are heavy consequences when these rules are broken. Some laws take a Federal stance and you may want to look that up before procuring your license.

For most states, a property manager must operate a real estate business with a broker’s or property management license. This license must be operated under a licensed real estate brokerage firm. It is not unusual to see property managers doubling as real estate brokers or owners. To obtain this license as a property manager or a real estate broker, you must obtain a license from the state governments or real estate boards. A license is important because it separates the real brokers from the inexperienced and gives credence to the business. It also gives you the authority to engage in property management. In addition, a broker’s license is important for property managers because it helps them understand the way to handle trust funds.

Pros of Property Management Services

• Increases Income

Property management is another avenue to make an additional income. The income potential of the business is enormous. Property managers charge monthly management fees that range between 7-10% of the total income gotten from the rental income. Since it is a business of numbers, you earn more when you manage more properties. The more you manage, the more your income increases. However, the price you take home at the end of the day depends on the number of people in your team. It might be a big leap moving from ownership to management but it can be done.

Value-Added Services

The Real Estate business comes with a lot of value added services that you can offer to your clients after a sale. Client relations is thereby improved through these acts. If you sell a property to an investor or client and he enjoyed your customer relations, you can make additional income by providing value added services. This can also lead to recommendations. This will earn you extra money while you keep doing the things you love. There are high chances that if you work with investors, you can help them grow their portfolio and help them acquire additional properties. If you create a strong relationship with them, your firm will be top of mind if they decide to more real estate business decisions.

• Market Stability

Real Estate rental or property management services is one of the businesses that enjoy market stability. The housing market rotates but even at times when sales are slow, the market will remain stable and solid. The rental market is another solid sector that keeps on waxing strong. As a broker-owner, your income is continuous of the percentage you earn from rent. Hence, market stability ensures that you have some sort of income no matter what happens.

Cons of Property Management

Like everything with advantages, property management has its cons. While adding property management to your real estate business, consider the following cons:

• Tenant relations

Some tenants can display bad manners, ill tendencies and as a property manager/owner, you have to deal with it in the best way you know how to. This can lead to severed relations that can cost you tenants, referrals and more deals. In addition, tracking down defaulting tenants, due rents and maintenance crises are some of the things you have to worry about.

• Landlord-tenant laws of your state

Property managers need to be versed in all the federal, state, and local landlord-tenant laws. These laws can be learnt before you obtain your license but you need to keep abreast of them. They can change anytime.  You need to be updated in other to protect your business interests and that of your clients.

• Multi-tasking may be difficult

Managing multiple rental properties may be tasking if you do not have an efficient team. You might be involved in too many things thereby reducing your productivity and efficiency. In the bid to manage a lot of properties, you may also end up taking on more clients than you can handle thereby causing dissatisfaction. To surmount this problem, you will need an experience agent or property manager to hire a team and put you through on how to juggle multiple clients.

This is where our experienced agents come in.

After years of providing successful property management services to several real estate businesses, we are ready to help you diversify your income and grow your client base. Our experience team of expert agents are professionally licensed with the technical know-how to deliver quality service.

We aim to help you get the very best from your properties. We are good at our job and we treat each client with a personalised and customized approach. Whether you plan to buy, rent or invest in a property or engage in the management of your properties, talk to us. These are big decisions that need the touch of experts.