Which involves all the duties required in taking care of all the activities of overseeing, regulating, controlling, and taking financial records of a real estate property such as a commercial, industrial, residential property. The responsibilities of real property management can be overwhelming for property owners, especially since they may not be real estate experts and have a personal business they manage. Whereas, managing real property is not a child’s play, as it has its legislation, regulations, and professional requirements. Because of this, property owners undoubtedly need to hire real estate experts for the management of their properties.
What Is a Real Property Manager?
Real property manager is a person or company hired by real estate property owners to control, oversee, and regulate everyday activities of their properties. A real property manager is a real estate expert with specialized training, experience, and license in managing real estate properties.
Property owners and real estate investors rely on the expertise and experience of a real property manager to act on their behalves when they cannot manage their properties themselves. It is more beneficial to hire professionals to manage a real estate property than getting caught up with intricacies of real property management. Besides, the cost of hiring a real property manager is tax-deductible on the income earned from the proper. So, what’s not to like it hiring a professional manager?
As experienced stakeholders in the team estate industry, real property managers provide viable solutions for real estate investors who live far away from their rental properties or do not like to deal with tenants and managing the properties personally. Property managers help them to oversee their retail malls, apartment complexes, and business offices.
Responsibilities of Real Property Managers
A real property manager undertakes the following tasks on behalf of property owners and real estate investors:
- Advertising of Vacant Properties
A real property manager acts as the agent for property owners and advertises vacant properties on online platforms, flyers, etc. to reach prospective tenants.
- Leasing Vacant Units
The manager leases vacant properties to tenants and ensures that only suitable tenants that indicated an interest in the vacant property.
- Collection and Deposit of Rent
A real property manager collects and deposits rent from tenants to the property owner’s account.
- Ensures Regular Payment of Rent
This is one of the essential responsibilities of a real property manager – ensuring that rent is paid correctly and on time.
- Tenant Management
Besides leasing vacant properties to tenants, the manager also sees to the eviction of defaulting tenants according to law.
- Maintenance of the Building
The real property manager also ensures to keeping the building in the best condition through cleaning and undertaking necessary repairs.
- Proper Documentation
Real property managers ensure appropriate documentation of property records, tenants’ records, rent collected, taxes paid, etc.
What Is a Typical Property Management Fee?
The typical real property management fee can be broken down into different categories, based on the functions to be undertaken by the real property manager. Here is the breakdown of the fees.
- Initial Setup Fee
This fee is charged by a real property manager to cater to the inspection of the property. It is usually not more than $500.
- Monthly Management Fee
Many real property managers charge this fee for managing the property. This fee is usually declared in the form of engagement when signing the contract. The fee may be a flat fee or percentage of rent.
- Tenant Replacement Fee
A real property manager may charge a separate fee for getting tenants into your property. It may be a flat fee or a percentage of the rent payable by the new tenant. The fee usually covers the cost of advertising, screening, documentation (lease agreement), and move-in procedures.
- Vacancy Fee
A real property management contract can contain a vacancy fee. It could be charged per vacant unit or a one-time fee of one month’s rent. It could $50 per vacant unit.
- Maintenance Fee
This fee is usually included in the monthly management fee. It often consists of the cost of cleaning the building, refuse disposal, and snow removal.
- Eviction Fee
When the property owner wants the real property manager to evict a tenant, an eviction fee will be paid.
- Early Termination Fee
When a property owner is terminating the contract with a real property management company before the due date, the fee that will be paid is called the early termination fee.
What Is Required to Become a Property Manager?
Are you planning to have a new career? Do you want to know how to become a real property manager? Do not stress out; here are the steps involved.
Step 1: Learn the Legal Requirements
Each state has different sets of rules for becoming a licensed real property manager. The type of properties you manage will determine the laws that apply to you. As a result, learn about the rules for becoming a property manager in your city. You should, however, start from obtaining the right license by complying with the legal requirements.
Step 2: Real Property Education
It would be helpful if you registered for specialized education on real property management, where you will learn real estate management, real estate finance, real estate development, urban planning, property management, etc.
Step 3: Specialized Certifications
Try as much as possible to obtain certifications in real property management as it shows your level of professionalism. Also, get the necessary licenses to improve your chances of being employed.