Management Facts

Management Facts

This article contains several essential basic management facts. Enjoy!

Ever since the concept of property management has emerged it has consisted of three objectives which were:

• securing the tenants
• collecting rent
• the maintenance of the building

Formerly, properties could be easily managed by an individual without the need for an external party. With changing times came dynamic environment which required this practice to change. Now the needs of tenants have changed and the property managers need to adapt as per this. The Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) manages/ regulates the properties that fall under the commercial, residential and industrial building categories. Property management is now regarded as a professional career and a business opportunity.

The flow of management follows a three-step process:

• advising,
• planning,
• execution

Property Manager

A property manager is a third party who is hired by a landlord or property investor to manage the day-to-day operations at rental property. Their exact responsibilities will vary based on the type of property they are managing, the amount they are getting paid and the terms of the management contract.

Responsibilities of a Property Manager

There are seven of the most common tasks a property manager is responsible for which are:

• Rent Responsibilities
• Tenant Responsibilities
• Maintenance and Repairs
• Knowledge of Landlord-Tenant Law
• Supervising Responsibilities
• Responsible for Managing the Budget/Maintaining Records
• Responsible for Taxes

Scope for Property Manager

The four main scopes for a property manager:

• Resident management
• Building maintenance
• Facility maintenance
• Accounting and human resources

As per resident management, the manager is accountable for selecting a security firm to guard the property. The selection is made on the basis of the most trustworthy and notable security firms. Typically, property managers are tasked with talent management and they are required to find the most efficient and qualified person for the job. It is to ensure that residents are getting the optimal amount of services that they have paid for. Property managers are usually in charge of managing the collection of maintenance fees along with the accounting and reporting the aspects of rental.

Maintenance

Property managers also govern the upkeep of buildings and the general repair of facilities, adding that there are those who ensure that lifts and stairs are rationally placed to maximise movement.

The maintenance of the property can be majorly divided in three broad categories viz. Routine, Scheduled and Curative. Routine maintenance involves time bound check of different portions and appliances etc on the property. It is generally a regular process in order to ensure that any problem is detected in initial stages so as to avoid to at-least minimise the damages. Scheduled maintenance is long temporal check of property especially based on seasons like winters, rains etc or after a major natural event like a storm or tornado etc. Curative, on the other hand, is specific to repairing the damages to the property by any reason.

Professional and well managed Routine Maintenance minimizes the requirement of Curative actions thus helping in reducing the maintenance cost and effort of the managers.