Top 11 Responsibilities of a Property Management Company
1) Financial and Accounting Reports – Owners want to view financial reports, which include accounting and expenses for a specific time period. Management companies typically issue financial reports and “owners’ withdrawals” (owners’ earnings) to their clients on a monthly basis. Throughout the month, various expenses may crop up, such as paying a plumbing company that fixed a tenant’s sink or a painter who painted a vacant unit. Each expense should be clearly itemized for the property owner to see on a regular basis. 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 removing the burdens and complications 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 landlords and tenants, but also between neighboring tenants. For example, a tenant can report to the management of a neighbor, who organizes noisy 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. In general, these issues can be resolved through civil discussion and compromise. 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, and that’s why a competent property management team will have staff on duty to answer these calls on a regular basis. Nothing is built forever and things inevitably break; That’s why top-tier property management companies have a professional, formidable, and knowledgeable 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 job appropriately. Management companies must 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 hire accordingly. It is important to hire trusted providers, who have experience and references available for your work. Hiring an incompetent provider will inevitably cause a tremendous cost to homeowners. Therefore, it is important that the management team evaluate multiple providers and choose wisely to minimize costs while maintaining an optimal level of service.
5) Optimize vacancies – When a tenant moves out of a unit, the owner wants a new tenant to move in as soon as possible. Therefore, immediately after the tenant moves out, the management team will make any and all repairs to the unit, as well as 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 apartment marketing and advertising 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 modes of advertising, such as putting up visually appealing signs for people who are driving by, exploring the neighborhood for apartments.
7) Tenant Screening: Once the apartment is shown, those interested in renting it fill out a form that allows the management team to understand and learn who the prospective tenant is. Factors considered in the tenant screening process include: 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 who wants 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, which precisely spells out the agreement and the 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 the specifications and ensures that a reputable supplier is contracted to make the improvements.
10) Post Notices: Notices are issued to inform tenants of important issues or emergencies. Sometimes tenants must 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 the legalities can cause major legal repercussions, so it is imperative to have a management company that is knowledgeable and familiar with real estate law.
11) 24-Hour Maintenance Phone Line – Because various issues can arise after normal business hours, it is important to have a member of the maintenance team responsible for incoming calls 24 hours a day. A dedicated maintenance team will take calls at 3am and, in the event of an emergency, will come to the property to make repairs.