Property management is the day-to-day administration of industrial, commercial, or residential property by a third party. The property manager assumes the role of daily repairs, security, maintenance of properties. They are hired by residential, commercial or industrial property owners such as apartments, condominium complexes, private home communities, industrial parks and shopping centres. Their responsibility is to maintain the value of the property as they generate income. We spoke with Bristol-based property management specialists JBS Lettings about what exactly a business of their kind does to help landlords.
Roles of a property management company
Given the nature of their work, property management companies’ duties range from financial services to management functions. The following are the general roles of property management companies.
Property Evaluation and Valuation
The property manager conducts an in-depth assessment and generates a detailed report on the property’s general state. This report entails photographs, dates and thorough notes. It highlights any refurbishment or cosmetic work recommendation that could enhance the property’s value. By gathering information regarding the local rental market and comparing it with similar properties, the property management company can set the property’s best rent rate. They also review other social issues with the owner, such as security and the types of tenants acceptable on the property and advice accordingly.
Rent collection can be challenging, especially if your tenants do not pay their leases upfront. Property management can help ensure that rent payments are made in due time to avoid inconveniences. By implementing fines on late payments, property managers ensure a steady income stream to sustain a profitable business. Most importantly, this is done professionally hence avoiding any legal trouble.
Property management companies act as a go-between for the tenant and property owners. They are the ones who deal with all affairs throughout the renting cycle. Therefore, they will ensure that the property does not remain vacant for extended periods. Property managers conduct a background check on the tenant and tenant referencing before they move into the property. The referencing process results are then forwarded to the landlord to make the final decision on whether the tenant is legible to rent.
Property Inspection and Maintenance
Real estate properties require frequent maintenance, which can otherwise become expensive if neglected for long. Property management companies will inspect from time to time and point out the issues that require attention. They will then compose these issues and any quotes for repairs in a report and send it to the property owner. They will also find and recommend the most qualified personnel to handle the repairs and facilitate the payment process. They will also oversee any refurbishment of the property and handle day-to-day maintenance concerns such as emergency repairs and tenant complaints.
Advertising the Property
It is the property management firm’s role to advertise the property to prospective tenants. The advertising process includes preparing the property for marketing, placing adverts on various mass media platforms, and taking professional photographs of the property to be used in the adverts. When advertising yields and prospective tenants start making inquiries, the company then assumes the role of booking and viewing the property to secure new tenants.
Financial Management Services
Property management companies are also in charge of conducting financial services such as mortgage and insurance payments on behalf of the property owner. Additionally, they prepare and supply the landlord with an annual rental income and expenditure report. This report indicates the cash inflow for each property as well as any outflow throughout a given period. These reports are necessary for tax. The management company can also advise the owner on the best tax set-up.
Facilitating the Tenant Move-In Process
The process of moving into the property commences once a new tenant is impressed with the property and agrees to the terms of leasing it. This process involves drafting the tenancy agreement, inventory checking, deposit collection and house preparation. The property management company will confirm the move-in dates and ensure that both the landlord and tenant have signed the tenancy agreement upon drafting it. Additionally, the company sees that the tenant’s deposit is reserved in a tenancy deposit scheme that the relevant authorities have approved.
Provision of Legal Advice
A property manager must give the property owner the appropriate legal advice whenever necessary. For instance, in case of a dispute between the tenants or between the tenant and the landlord, the property management company should give the landlord guidance on the best course of action. They can also recommend a qualified lawyer to help. They ensure the landlord is up to date with the current legal legislations and that he complies with the legal requirement of owning and letting property.
Overseeing the Eviction Process
Evicting a bad tenant property can be imperative when the landlord has to do it personally. Real estate management companies come in handy in such situations. They will prepare the necessary paperwork, such as the eviction notice, and promptly deliver it to the tenant. Also, they can alert the law enforcement authorities if need be, saving the landlord all the hassle.