Property Management is the administration of residential, commercial retail space and industrial warehouse space. It involves functions like control, utilization, repair, and maintenance, rent collection etc. Property Management is a continuous process and hence involves daily operations that are needed to manage a property.
The term property refers to the possession, which is of great monetary value. It generally refers to an asset of status to an individual. Managing a property is the concern which everyone faces. Managing all sorts of resources is not an easy task. It comprises the need for planning,organizing and control of one’s property. It calls for the need to be accountable and responsible for the property one owns.
Let us look into some points which are necessary for property management:
- Setting up of rules: The first step to property management is to understand the ground rules of the property. It is important to understand what the property offers and what is the rent to be charged for it. Keeping the rule clear which is always to maximize the profits and minimize the vacancy rate.
- Market Positioning: It is important to position your property in the minds of the customers in order to get the desired customer. Strategies like advertising, newspaper advertisement; billboards, etc. should be adopted.
- Right Selection of Tenant: Selecting the right tenant is of great importance. If a tenant background history is not checked, there can be a situation that you may give your property into risky hands. Hence, a proper tenant check must be done, in terms of last rental records, payments, credits etc. associated with the occupant.
- Property Details: Make a note of the items that are to be included with the property and given to the tenant to use. This could range from the equipment’s to furniture and to other minute details.
- The Agreement: The most crucial steps would be to sign the tenancy agreement. Once this agreement is signed, it becomes a record for both the parties that would be involved in this transaction. The agreement would contain every small detail that has been discussed between the property owner and the buyer.
- Advance & Rent Collection: Collect the rent for a fixed period of months in advance. This serves as a security for the property owner, which ensures him a guarantee of the tenant. Timely collection of rent from the tenants and review the rents when required. This would help detect the rent payment trends and identify defaulters.
- Repair & Maintenance: This involves providing timely repairs and maintenance that has been promised in the agreement with the buyer.
- Completion of Tenure: Once the tenant expresses his willingness to vacate the property, all the necessary steps needed to ensure a smooth vacancy are taken. This would also include completion of any remaining dues.
A property manager forms an integral part of Property Management. It is the job of the property manager to look after the property to both the tenant and the owner. The general reasons for hiring a property manager are: limited time, the owner is situated far from the property and other priorities of the owner. They would ensure shorter or reduced vacancy cycles, tenant retention, timely rental collection and fewer problems to deal with.
Property Management is not restricted to one direction and can take any course of action in the long run. It includes various aspects, concerns, roles, responsibilities and role players. It is important to continuously monitor and have constant checks to ensure effective property management.