Why Property Management is Such a Good Idea

Why Property Management is Such a Good Idea

The term property management refers to an agreement between a landlord and a property management company. It is the operation of commercial, industrial and residential real estate. It is important to the development of investment real estate and anyone who has purchased property with the intention of renting it on to a third party should seriously consider the help that is on offer from a property management team.

A property management team performs duties on behalf of a landlord to aid the needs of tenants. More and more landlords are now turning to the help of a property management team to perform many duties on their behalf; this allows landlords to create a fully functioning and successful business.

The duties that are performed by a property management team include; accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords and doing credit and background checks on tenants. They also manage the construction and development of properties for landlords and help with evictions, non-payment and harassment but just who are these property managers?

Property managers are one of the greatest resources that are on offer to landlords and anyone who is interested in getting involved in property investment. Property management cannot however just be performed by anyone. In many states property management teams need to be licensed real estate brokers; this is especially true if the duties undertaken by the property management team include collecting rent and listing properties for rent or helping negotiate leases. A property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker. This is easy to check too due to the fact that most states have a public license check system online. If you do not decide to use the help of a property management team then it should be noted that you don’t have to hold a real estate license.

By using the help that is on offer to you from a property management team you are ensuring that the construction, development, repair and maintenance on a property is taken care of. Everything and anything that needs to be done on the property will be taken care of by the property management team. They will be the face of your rental business as they will be the ones who will deal face to face with your clients. A property management team will handle relations with tenants, giving a face to you, the landlord, which provides a buffer if you desire to distance yourself from tenant constituency.

So for all of the work that a property management team delivers, what do they want in return? A property management team will simply charge you a percentage of the gross amount of rent that is collected every month. This percentage is generally between three to ten percent.

A property management team will ensure that you are successful when it comes to renting your property out to a third party. So to gain and keep your tenants get in touch with a property management team today.

Watch the video related to property management

Help answer the question about property management

What percentage of the rent roll is a property management company normally valued at ?
Looking at buying a property management company with monthly rent roll of 20 K, how much would this company be valued at?

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18 Responses to “Why Property Management is Such a Good Idea”

  1. PivotStorm says:

    fantastic!

  2. kgaara134 says:

    Amazing painting, and love your song also.

  3. Aimee says:

    I always recommend rent. The economy does not need one more house on the market. There's plenty already.

    Hire a management company, and make sure they are competent. Interview a few of them and get an idea how they operate. I usually charge $35/mnth for managing a property in Houston.

    As a landlord, eventually you will realize a small profit and home equity. All you have to do is review management company reports.

  4. mizemathis says:

    do not get a sub prime loan..

  5. gamma1 says:

    You have followed all the rules and been reasonable. Your only remaining option is to call the police and have it towed the next time. I can certainly understand your reluctance to take this step, but if you don't, the problem will most likely continue indefinitely. There is a remote chance that your worst fears could be realized and the person could confront you. Can live with that possibility?

  6. ravensfanandrea19962 says:

    AMAZING!! love it!
    its like u took a picture@@

  7. Lincoln Lady says:

    I will answer this in a plumbing way and legal way. You might not like this though.
    1st I have been in the field for 20years and this has happened ALOT over the years to customer's of mine and apartment's I deal with.
    In a plumbers point of view. This would be correct that the pipe was split in half as you say. It was a very bad design that was used in the days. In newer homes you will not find this due to the fact of problems just like yours.
    Now in a legal way. 95% of the time the bill is yours to pay. (SORRY)
    If you read the contract you singed when you rented im sure its in there somewhere. But for the most part. The company will pay for a cloged sink/tub etc as long as it is due to normal build up of sludge over time. Meaning if the unit is 30yrs old and you have lived there for 5 yrs there is 25yrs of use in the pipes already. They cant make you pay for other peoples build up. Now if you cause a clog thats a different story. When the pipes were put in under your sink they were up to code. It was inspected and so on. Most people think if new things come out or a new set of rules that everything must be done the new way. THIS IS NOT TRUE. It only needs to be updated if you work on that section and so on.
    Now even though it is really not your fault cuz im sure the pipes were split inside and the disposer is probley not the best. You still should give it your best shot to avoid the bill.
    I would call the plumber who did the job and ask him to write why he used a different kind of pipe verse the old one. Point out to him. Am I correct to say with this pipe there is a much better chance of the unit clogging due to the pipe it self rather then me. Then i would let the company know. That you dont have a problem useing the disposer as directed and you would not use it in any other way. (Get online and go to the web site of the disposer and print the spec sheet along with other info regarding what and what not you should put into the disposer.) Even if you put 1 or 100 carrots into the unit it can only grind so much at a time. Therfor it is not going to put 100% more of the carrot down the drain at one time.
    With all this tell the company and give it your best shot.
    This is the only thing that might help you. But like I said they will pay for things that go wrong over time and use but they wont pay for something that happened in 5 minutes wheter you knew about the pipe or not unless you were told..
    goodluck

  8. BAGHEADSproduction says:

    GOOD JOB! I Will Susrcibe!

  9. Karen-619 says:

    I think your topic sentence should kind of hint at least why your telling me this. Beause they are a good idea or a bad idea.
    Should I get one or stay away.
    Because most lay people that try to manage a property are under prepared.
    I don't take this for a paragraph designed to persuade but they should know what to get out of it.
    I see a lot of this and that -does- this and that.
    Also, the last sentence dose not fit the in the paragraph.
    One other thing I saw, –Community association managers manage property (redundant) Like saying Baseball players play baseball and sign autographs . . .
    There is a lot of "They(s) in the paragraph. Since there are two types of managers introduced in the topic sentence I thought this would be a compare and contrast paragraph. The reader can get lost as to which one They refers to. If they both refer to management agencies, maybe use that term in your TS.
    Some of your helpers are going to rewrite your paragraph for you. Hhhmmm, dubious help at best. Writing a good paragraph is a skill you will need in life unless you're a laborer or want to get paid by the hour all your life. Take some time to get good at it.

  10. RichelleSan says:

    wow, amazing. Deep is my favorite actor too.
    (Brasil)

  11. happyanimeproduction says:

    AMAZINGGG

  12. chainsawXmassacre says:

    you, sir, are freakishly talented. congratulations. :D

  13. serilopr says:

    my favorite actor! too!
    Johnny Depp! best movie Edward Scissorhands! your Awsom! artist!

  14. zackoman123 says:

    amazing, how is that possible!? !?

  15. Jennifer says:

    Jen…not again.

    Anyhow. Yes I still believe that credit reports are a useful tool for landlords. It may not guarantee that the tenant will pay rent on time or pay at all, but it does give the landlord some idea of the characture of the tenant.

    Perfect example is my sister. She and her loser BF and their 3 kids purposly rent from landlords who don't run credit checks (usually these are private landlords just trying to get help with their mortgage payments and taxes). Sis and her BF get their lazy booties in, pay the first month and then stop. Here in NY it takes anywhere from 3-6 months to evict a deadbeat. She has done this over 10 times in the past 5 years. 2 of her previous landlords lost their homes because of her. If any of these landlords had run a credit check…they would of seen the many evictions she has on her report. They would have also seen that she never pays her bills..puts her utility bills in her 3 year olds name…and has never held a job for more that 6 months.

    I know what your going to say…."well these landlords should of asked for references"…right? Well they do. My sister gives a friends name and number…this friend claims to be her previous landlord and they then give her rave reviews. She has even asked me to pose as her past landlord.

    People like my sis know the laws and how easy it can be to milk a landlord/apartment for as much as they can. She's become a professional at it. I will not give up my right to run a credit report on my tenants without a fight…sorry.

  16. John Sardias Vottaro says:

    With the exception of alcohol, and pot, and your willingness to accept and encourage free-market capitalism, it seems fairly good, especially from an environmental standpoint.

  17. Lincoln Lady says:

    This is absolutely the management's responsibility, and any respectable landlord should take steps to ensure that the infrastructure of their property is in good working order. Garbage disposal issues have a long history of falling to the tenant, however, because many people misuse them. It is possible that damage from a garbage disposal could result in needing to replace the piping, but if you used it correctly like you said, the repairs should fall to the landlord.

    Check your lease. Many times this very issue is written in to the lease terms.

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