Top 11 Responsibilities of a Property Management Company
1) Accounting and Financial Reports – Owners want to view financial reports, which include accounting and expenses for a specific time period. Typically, management companies issue financial reports and “owners’ withdrawals” (owners’ earnings) to their clients on a monthly basis. Throughout the month, various expenses may arise, such as paying a plumbing company that fixed a tenant’s sink or a painter that painted a vacant unit. Each expense should be clearly itemized for the property owner to see regularly. It is the duty of the property management team to monitor and optimize the financial productivity of its clients.
2) An integral component of a property management company is to eliminate the burdens and hassles that inevitably arise when owning an apartment building. Therefore, the mission of the property management team is to act as a liaison not only between owners and tenants, but also between neighboring tenants. For example, a tenant may report to management a neighbor who throws loud parties at night or causes other disturbances to the residents of the apartment. It is the responsibility of the management team to intervene and resolve matters in the most efficient and effective way possible. Generally, these issues can be resolved through civil discussion and can be compromised. However, if there is a tenant who refuses to cooperate, additional steps must be taken.
3) Apartment Maintenance: Tenants call the management team to notify them of any damage that has occurred and any repairs that may be needed. Landlords understandably don’t want to answer calls from tenants requesting repairs, which is why a competent property management team will have a staff charged with answering these calls on a regular basis. Nothing is built forever and things inevitably break; That’s why top-tier property management companies have a formidable, knowledgeable, and professional maintenance team.
4) Hire vendors for repairs: When looking for the right person to do maintenance work, managers need to assess specific needs and delegate the work appropriately. Management companies should assess whether the repair requires a handyman, licensed contractor, skilled electrician, industrial plumber, or other workers to handle the specific problem. Vendors submit bids, or cost estimates, to the management team, and the property management company uses its discretion and judgment to contract accordingly. It is important to hire trusted providers, who have experience and references available for their work. Hiring an incompetent vendor will inevitably cause tremendous cost to homeowners. Therefore, it is important for the management team to evaluate multiple vendors and choose wisely to minimize costs while maintaining an optimal service level.
5) Optimize vacancies – When a tenant moves out of a unit, the landlord wants a new tenant to move in as soon as possible. Therefore, immediately after the tenant moves in, the management team will make any and all repairs to the unit, as well as the surrounding and common areas of the building, in order to beautify and optimize the vacancy for tenants. new tenants.
6) Marketing: In today’s market, the most popular means of marketing and advertising apartments is generally online listings. Popular websites like http://www.craigslist.com or http://www.postlets.com are used regularly, especially in big cities like Los Angeles. There are still other ways to advertise, such as putting up visually appealing signs for people who are driving by, exploring the neighborhood for apartments.
7) Tenant Selection: Once the apartment is shown, people interested in renting it fill out a form that allows the management team to understand and know who the potential tenant is. Factors that are examined in the tenant selection process include: the applicant’s credit rating, criminal history, income and employment history, and previous residences.
8) Negotiate and sign leases: Once there is an interested and qualified party willing to move into the apartment, the management company provides a lease. A lease is a legally binding agreement between the property owner and the tenant, accurately detailing the agreement and expectations of both parties.
9) Periodic Inspections: It is imperative that your management company conduct periodic inspections of the property. During a property inspection, a trained member of the management company goes to the property with a checklist, which includes various elements of the building that must be maintained. When repairs are necessary, the inspector makes sure to document all specifications and makes sure a reputable vendor is contracted to make the improvements.
10) Post Notices: Notices are issued to inform tenants of important matters or emergencies. Sometimes tenants need to be informed of an upcoming building inspection or a scheduled two-hour “water shutoff” period. Depending on the region of the property, owners and managers must comply with various laws and regulations of the city, county, state, and federal government. Failure to comply with legalities can cause further legal repercussions, so it is imperative to have a management company that is knowledgeable and familiar with real estate law.
11) 24-Hour Maintenance Hotline – Because many issues can arise after normal business hours, it’s important to have a maintenance team member responsible for calls that come in 24 hours a day. A dedicated maintenance team will answer calls at three in the morning and, in an emergency, will come to the property to carry out repairs.