Real estate property management has evolved over the years and keeps on getting better and better. With the innovation of technology and infusion of the same into marketing, advertisement and management, the work of a real estate property manager has been simplified and is even more enjoyable. Big real estate companies implement the use of technology to manage multiple properties and thus makes it easier to perform their duties with due diligence. Real estate management can be described as the oversight of the operations and control of property whether private or public. A real estate manager cares for and monitors a property and is accountable for the day to day activities of the property.
In short, real estate management is the management in the totality of the life cycle of property. For instance, management of a property begins the moment the property is acquired, how it is controlled, managed, maintained, utilized to how it returns a profit to the owner and lastly how it is disposed of.
What do Property Managers do?
Property managers really have their work cut out for them. All they have to do is to oversee all the functions of the property and be accountable to the sustainability of the property. The scope at which the real estate property managers operate in is extensive; this can range from simple tasks like advertising vacant property to reaching agreements with tenants, contractors and insurance agencies. They have to make sure that the day to day functions of a particular real estate property run as expected to the satisfaction of the property owner and the tenants. For example, most properties require tenants, maintenance on a regular basis, repairs and reorganization of equipment like drainage tools etc. And such work will always need professionals like plumbers, electricians, security personnel and the like. Therefore it is the real estate manager’s responsibility to supervise and hire the personnel for the successful running of a property. An excellent property manager will organize their work schedule to meet all the needs of the property. The following are quick examples of the responsibilities of a real estate property manager.
Rent Collection and Allocation
Property managers are responsible for the rent. This is the amount agreed upon by the tenant and the property owner that the tenant must pay after a certain agreed period of time. It is the property manager’s responsibility to allocate the amount of rent to be paid, to enforce the rent payment policy. The rent allocation depends on specific factors that the manager should be aware of; like area codes, state, proximity to certain amenities like the beach, etc. The amount of rent, terms of rent increments and terms of all the rent-related issues are primarily addressed on the tenant agreement. This agreement is the written contract between the tenant and the landowner to have a friendly and conducive living environment.
Responsible for tenants
Real estate property managers are responsible for finding tenants. Acquiring tenants can be accomplished through advertising. The property manager also carries out the screening process for the tenants. This is to ascertain that the rental property suits the tenant, checks the criminal records of the tenants to ensure a safe environment, for example, a registered sex offender living in a residential area near a school. It is better being safe than sorry.
In charge of maintenance and repairs
Real estate managers are responsible for all the repairs, maintenances and replacements. It doesn’t matter if the property is new or of age. This includes assessing the property for damages, malfunctions, regular upkeep etcetera. All these functions require contractual labour of which a real estate manager is responsible. This is the physical management part of his or her work.
Management of employees
With the requirement of physical management of the property, the manager is expected to manage all the employees and the contractors. Employees like the security personnel, genitors, the plumbing company etc. it is upon the real estate manager to hire these people for purposes of maintenance and repairs, negotiate their contracts and salaries and implement the agreements once the work is successfully completed.
The property manager can assist the owner of the property in filling up their tax compliance forms or simply take it up themselves and fill in the tax returns forms and make sure that the property complies with the laws of the state.
It is up to the property manager to make sure that the landlord-tenant laws are adhered to. These are the laws and regulations that govern the rental of commercial and residential property. These laws are primarily of the state statutes and common law. A real estate property must be conversant with these laws to ensure equality and prevent discrimination. The landlord-tenant laws take care of evictions, harassment, reduction of prearranged services, public nuisance etc. most of these issues are legal issues that are prioritized by the real estate manager; therefore he or she should make an effort to learn more about these laws as applicable to the state and housing laws.
A property manager is responsible for managing the budget of a set property. Each real estate property runs on a budget that is sufficient for all the operations of the property; maintenance, repairs, employee salaries and general upkeep. As a property manager this budget should be run with thorough accountability, and resourcefulness while keeping the tenants and the landlord happy.
How Much Do Property Managers make?
Many people in the world continue making a living out of real estate property management businesses. It’s a very lucrative industry with ready markets all over with a sustainable income. Most property managers incomes vary with several factors like size of the property, the location of the property, the needs of the property, for example, residential apartment’s needs are very different from hostels. In the US, the average salary of a real estate property manager varies between $100,955 - $139,228 per annum. With such income grossing, a real estate property manager can afford quite a very comfortable lifestyle.
A real estate companies have different business models, each aimed at profit generation. Most of them benefit from a percentage of rent. If the landlord , in this case,agrees with a real estate property management company giving them allowing them to rent out to new tenants and collects the rent keeping up to 15 % of the rent and sharing the rest with the landowner. This way the company benefits a lot and can pay their employees, pay their bills and be able to acquire more property.
How to become a real estate manager
To become a real estate manager of a property manager one must first develop the interest or liking of the profession. Secondly, they must acquire a formal education towards the course, like a bachelor’s degree in real estate.
According to the late great Jim Rohn, “you can choose to suffer the pain of discipline or the pain of regret and disappointment” therefore for the aspirant to become successful they must first understand the real estate management and acquire skills in becoming the best in property administration and management.
After the completion of the formal education towards becoming a real estate property manager, licensing becomes the next step. Licensing is important because real estate is a very sensitive investment platform that requires pure authenticity. One becomes licensed in their state by completing specific requirements by the state. Candidates must complete a certificate of registration or a licensing program.
Real estate property management can be very lucrative business. It is a business that a person can get involved in as an individual or even an employee of a real estate company. It requires minimum qualifications of just a degree and as time progresses the essential experience makes the person better at it. Many people in today’s world are committing to real estate as it is one of the best investment and employment platforms currently available.
Technology has dramatically motivated this industry such that most of the things that were being done manually are today being performed virtually. Tasks like management of employees, supervising of labour, salary disbursement can easily be done virtually. Because of this real estate management is an industry that is potential to grow and is prone to technological advances.
The functions of a real estate manager are simple tasks that have to be managed with a lot of prowess and expertise. Lack of these services will lead to unsatisfied tenants and landlord. A good real estate property manager will strive for excellence in all their duties; they will work with people of the same work discipline as them to ensure total customer satisfaction.
It is also very essential for real estate managers to be conversant with the property laws, housing laws, landlord-tenant laws etc. This is because these laws will safeguard the real estate agent fist, the tenant, and the landowner, as long as the manager adheres to the law.
Most real estate management companies begin as small-scale companies or only as individuals who venture out and seek for the opportunity. Whether someone takes on this business as an individual or as a company, they are guaranteed a steady income, as long as they give it its due diligence.