Back To: Real Estate, Personal, & Intellectual Property

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.

Related Topics

• Property Law (Intro)
• Tangible and Intangible property?
• Knowledge Capital
  
• Calculated Intangible Value
• Real and Personal Property?
• Chattel
• Littoral Land
• Fixtures?
• Appurtenance
• Readily Removable Fixtures
• What is ownership?
• Role of Government in ownership of property?
• Allodial System
• Role of property rights in economic activity?
• What are the limitations on property ownership rights?
• What is nuisance?
• What is Zoning?
• What is Eminent Domain?
• Just Compensation
• What is Property Taxation?
• Assessment Ratio
• Millage Rate
• Homeowners Association (HOA)
• Accession?
• Rule of First Possession?
• Lost or Mislaid Items?
• Adverse Possession?
• Encroachment
• Contracts?
• Gift?
• Confusion?
• Establishing and transferring ownership in real property?
• Absolute Title
• Warranty Deed
• Register of Deeds
• Conveyance
• What is a fee simple interest in real property?
• Absolute Interest
• Restrictive Covenant
• What is a life estate in real property?
• What is a leasehold estate in real property?
• What are common types of co-ownership relationships in real property?
• Owning Real Estate Personally vs as LLC
• What if Co-Owners of Real Estate Want Out
• Community Property and Separate Marital Property?
• What is an easement interest in real property?
• What is a license of real or personal property?
• Bundle of Rights
• Absorption Rate
• Fair Housing Act
• Federal Housing Administration (FHA)
• Housing and Urban Development (HUD)
• National Housing Act
• Design Build Contract
• Building Permits
• Certificate of Acceptance
• Construction Surety Bond
• Acquisition, Development, and Construction Loan (ADC)
• Flipping (Real Property)
• Buy, Strip, and Flip
• Homeowner Affordability and Stability Plan
• Building Residual Method
• Accessory Dwelling Unit
• Property Management
• Cost-Plus Contract
• Real Estate Investment Fund
• Listing Agreement
• Property Lawyers
• Multiple Listing Service
• Home Equity
• Register of Deeds
• Title Search
• Opinion of Title
• Certificate of Title
• Abstract of Title
• Chain of Title
• Clear Title
• Cloud on Title
• Defective Title
• Defect of Record
• Action to Quiet Title
• Abeyance
• Encumbrance
• Affidavit of Title
• Warranty of Title
• Title Insurance
• American Land Title Association (ALTA)
• Earnest Money
• Private Mortgage Insurance
• Closing (Property)
• Settlement Statement
• Real Estate Settlement Procedure Act (RESPA)
• HUD-1 Form
• Closing Statement
• Closing Costs
• Buying Real Estate as an LLC
• What is a mortgage?
• What are the Rights of a Mortgage Holder?
• Deed of Trust or Security Deed?
• Trust Deed
• Certificate of Release
• Judicial Foreclosure
• Lis Pendens
• Deficiency Judgment
  
• Short Sale 
• Homeowners Protection Act
• Deed in Lieu of Foreclosure
• Tax Deed
• Tenancy at Will 
• Closed End Lease Definition
• One Percent Rule
  
• Net Lease
• Triple Net Lease (NNN)
• True Lease Definition
• Land Lease Option
• Hell or High Water Contract
• Habendum Clause
• Attornment
• Implied Warranty of Habitability
• Emblements Definition
• Co-Tenancy Clause
  
• What is a bailment?
• Consignment
• Unilateral-benefit and mutual benefit bailments?