Property Management – Definition

Cite this article as:"Property Management – Definition," in The Business Professor, updated October 11, 2019, last accessed October 25, 2020, https://thebusinessprofessor.com/lesson/property-management-definition/.

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Property Management Definition

Property management refers to a process of monitoring and overseeing the operations of a real estate. The administration of of a real estate whether it is a residential, commercial or industrial real estate is property management. Oftentimes, property management is done on behalf of the real owner of the property, which means managing a property owned by a third party.

Property managers are hired by landlords or property owners who need help with managing their properties. The property manager in charge of a house, an apartment or shopping facilities is responsible for managing and overseeing daily activities related to the properties.

A Little More on What is Property Management

There are core skills or areas of specialization that are required for property management, the most important ones are administration and marketing. The property manager is accountable to the real owner of the property, usually a third person. Time to time reports on the activities related to the property as well as the conditions and status of the property are given to the owner.

In some cases, real estate brokers function as property managers, especially when the real estate broker has diversified services they offer to clients. Property managers are responsible for the collection of rent, rental of the property, general upkeep and repairs, cleaning and maintenance of the property.

Reasons for Hiring Property Management Firms

Owners of real estate property hire property managers for several reasons, the major reason is the lack of skills required to manage and administer a property on the part of the owners. Property owners who are not resident in states where they have properties might also need to hire a property manager or property management firm for effective administration and monitoring. Furthermore, property owners who want to put up their properties for lease or rent need the help of property managers.

Property managers render their specialized services in exchange for a fee, there is a payment agreement that often exist between the property owner and the manager, this might be a percentage of the rent received or an agreed sum of money.

Property Management Credentials

Not just anyone can function as a property manager or establish a property management firm. In many states, there are regulations and requirements that guide who can be a property manager. One of the requirements is a license from the state in which the manager operates. A property is required to have a real estate broker’s license in some states while other states require a professional designation in property management.

Depending on the state, there are agents that serve as oversight bodies to property management firms and ensure total compliance with the regulations and requirements of property management.

References for “Property Management

www.businessdictionary.com/definition/property-management.html

https://www.investopedia.com › Investing › Alternative Investments

https://en.wikipedia.org/wiki/Property_management

https://www.ukessays.com/essays/property/examination-of-property-management.php

https://legaldictionary.net/property-management/

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