Property Management - Explained
What is Property Management?
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What is Property Management?
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.
How Does Property Management Work?
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.
- Bundle of Rights
- Absorption Rate
- Fair Housing Act
- Federal Housing Administration (FHA)
- Housing and Urban Development (HUD)
- Design Build Contract
- Building Permits
- Construction Surety Bond
- Acquisition, Development, and Construction Loan (ADC)
- Flipping (Real Property)
- Homeowner Affordability and Stability Plan
- Building Residual Method
- Accessory Dwelling Unit
- Cost-Plus Contract
- Real Estate Investment Fund
Zoning, accessory dwelling units, and family caregiving: Issues, trends, and recommendations, Liebig, P. S., Koenig, T., & Pynoos, J. (2006). Journal of aging & social policy, 18(3-4), 155-172. The connection between zoning regulations and co-residential family caregiving in the United States is explored in this article. Firstly, an overview of U.S. housing policies like zoning is provided. We describe the significant variations in family composition and structures in the United States and how they affect caregiving. We also discuss family caregiving support provided by multigenerational housing options like the accessory dwelling units(ADUs) in single-family units. The study documents current trends, add information from a minute non-random study of ADU project carried out in 2004. Recommendations for enhancing more multigenerational housing are provided. Housing changing households: Regulatory challenges for micro-units and accessory dwelling units, Infranca, J. (2014). Stan. L. & Pol'y Rev., 25, 53. There has been a reduction in the sizes of household with more people isolated in recent times. Notwithstanding, people are experiencing longevity with a significant rise in the number of multigenerational households which were popular in the previous generation. Available housing units and the city's evolving households units remain in a state of disequilibrium. Understanding and Appraising Properties with Accessory Dwelling Units., John Brown, M., & Watkins, T. (2012). Appraisal Journal, 80(4). Some municipalities for social and environmental factors enhance Accessory dwelling units(ADUs). Nevertheless, complications could arise from appraising of properties, as well as, lending on them that feature ADUs. This complication is facilitated by undervaluing of these properties and some other institutional frameworks. Provision on primer on ADUs and evaluation on an income-based method to valuation was provided by this article. An income capitalization method was adopted to show correlations between valuations and actual; sale prices; and the contribution of ADUS on a property appraised value given the formula adopted. An income-based valuation can enhance the insight of the appraisal. The flex-nest: The accessory dwelling unit as adaptable housing for the life span, Nichols, J. L., & Adams, E. (2013). Interiors, 4(1), 31-52. There have been changes in American families in the past six decades, while the single-family home housing them has hardly experienced changes. Indication from statistics shows a reduction in household numbers in the past decades, while house sizes have experienced significant enlargement. Slight variations exist in housing types, while building firms and clients support the private single-family home as the emblem of American success. The pressure from an overburdening recession on American housing has been profound. The collapse in the market has masterminded a lot of foreclosures and vacant single-family homes while facilitating scarcity concurrently in the rental market. Grandparents and Accessory Dwelling Units: Preserving Intimacy and Independence, Brinig, M. F. (2014). Elder LJ, 22, 381. ADU has the potentialities to solve a lot of social problems as it helps elders to live at homes while having a close relationship with their children. Professor Margaret Brinig looks at the potentialities of an accessory dwelling unit as a zoning device from both a legal and public policy angle.