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WHAT IS PROPERTY MANAGEMENT?
The buying and selling of property is a common business that is carried out throughout the world by millions of people. Property management is a branch of property dealing and it includes the maneuvering, operation, organization and overlooking of property and real estate matters. The term management, in literal terms, means to care for something or someone. When one is responsible for the care of a particular person or thing, then roles and responsibilities also fall into place. These roles may include monitoring, accountability and liability of the things or people in question. Management of a business and management of a property are similar in nature.
Property management also refers to nurturing and administration of personal property, equipment, tools and assets that have to be used in order to build, renovate, maintain or refurbish the final product i.e. the real estate.
There are several types of properties that need to be managed. These are divided into commercial properties and residential properties. Both of these types are listed below:
- Commercial properties
- Office buildings
- Purpose built office building
- Malls and shopping centers
- Research parks
- Factories and warehouses
- Personal storage buildings
- Property for industrial use
2. Residential properties
- Flats and apartments
- Public housing
- Rental studio housing
- Trailers and mobile home parks
- Studio apartments
- Student housing
- Elderly and senior housing
- Military housing
- Property management business models:
When it comes to property management, there are several business models that are followed by property mangers around the globe. Some of these are mentioned below:
- Percentage of rent model
The percentage rent model is one of the most common models which are used by property management companies. Used in residential properties, specifically double and single family residences, the property managers in the percentage rent model sign an agreement with the company, allowing them to collect rent from the tenants.
- Fixed fee model
The free fixed model is a business model which is usually employed by companies when they are surveying vacant houses and land sites. In this, the companies make sure that the property in question is secure and safe.
- Guaranteed rent model
With the guaranteed rent model, houses that are in high demand locations are kept in the loop. The company gets into an agreement with the owner and agrees to pay a fixed rent on monthly basis. However, the company itself can rent out the property at a higher rent to another third party.
- Revenue share model
The revenue share model applies mostly to commercial developments and properties. In this case, the property developers and managers agree to invest in the owner’s property and convert it into a business that may generate revenues. With this set up, the company shares the revenues with the property owner.
HOW TO BECOME A PROPERTY MANAGER?
- Who qualifies?
In order for an individual to be a property manager, it is necessary to acquire knowledge of certain subjects and learn certain skills. As far as the knowledge aspect is concerned, property managers need to have sufficient knowledge and recognition of the roles and responsibilities that come with this role. Some of these include the knowledge of relevant building agencies, developing contracts, fair housing, leases, mortgages and rentals that go into the possession of a property by the deserved person. Moreover, individuals who aspire to be property managers need to study marketing, administration and management, purchases, taxation, accounting, mathematics, insurance, finance and public relations.
- Property managers: roles and responsibilities
Quite simply, a property manager must take care of each and every aspect that is related to property dealing and property development. The following are some of the specific roles and responsibilities of a property manager. The details of the same are mentioned below.
- The property manager is responsible of creating and establishing the rental schedule that will guarantee the maximum yield that is possible. When talking about rents and how the property manager is responsible for this particular aspect of property management, it must be noted that it is the responsibility of the property manager to carry out a thorough survey of the neighborhood and the surrounding areas before establishing the rent. As a general rule, rent amounts and schedules are developed, based on the values that are derived after a comparison has been made. Hence, competition must be taken into consideration when establishing the rent.
- The property manager is responsible for making sure that the space available for rent is merchandised. That is to say, people know that it is on the market. A property manager must make sure that the rental space is accurately furnished and merchandised. One of the most common ways of merchandising property is to let people know on the internet. With the advent of the internet, advertising property has become easier, faster and more convenient. Other conventional methods include advertising on the television, newspaper, radio etc. With the right amount of effort, tenants would notice the property and bid for occupation.
- He or she is responsible for any maintenance, repairs or renovations that have to be done on the real estate or property. Moreover, the maintenance schedules and calendars have to be created by the property manager as well.
- Another duty of a property manager is to establish a payroll system for all the employees of the property dealing company.
- Moreover, the property manager is also responsible for developing the policies that apply to tenants and residents in terms of their relations. What this means is that in order to attract good tenants, the property manager must make sure that the potential tenant gets the full value for his or her money. The more benefits a manager will give to the tenant, within the realm of the owner’s positive profit margin, the more attractive the property will be. Hence, it is important for the tenant to get the value for his or her money.
- The property manager is also supposed to make sure that all the employees are performing their job and also work upon the different employee policies. It is the duty of the property manager to understand what each employee is doing, how he or she is doing it and when is he planning to do it. The key in effective property management is to choose a team of personnel which are in sync with the requirements of the owner, at a minimum cost.
- Property managers are supposed to maintain proof and record of all the matters that need to be reported to the owner of the property. A successful property manager must be bent upon keeping records and maintaining documents which are easily accessible to the owner of the property. Moreover, monthly audit reports containing billing and expenditure information must be kept in record by the property manager.
- It is the property manager’s responsibility to make sure that the tenants pay their dues and that their credit amounts are justified. The most important aspect is to make sure that the payment method of the tenants is sustainable and permanent.
- Property managers are responsible for granting leases to prospective buyers.
- They are also responsible for making sure that the staff that is hired is reliable and satisfactory according to the code of conduct that is given by the owner.
- Property managers are responsible for the monthly or quarterly audits and also make sure that all the bills are being paid on time.
- In case the owner wants to sell the property, a property manager must be proactive enough to advertise the property. Moreover, he or she must be aware of the latest market conditions and trends at all times. In case a property is lying vacant, the manager needs to review if the rent being asked is unreasonable or if there is any other reason such as obvious repairs in the property. Another reason for a vacant property might be that the property manager is not selling with the right techniques. Careless, lackadaisical attitude, lack of attention to detail, unfriendly attitude, damage to the property etc. all contribute to a property that is vacant for a long period of time. It is the job of the property owner to be proactive and active when it comes to making the deal a success.
- Online Property Management
Now that we have discussed the duties of property managers, it must be noted that with the advent of the World Wide Web, internet and its usage has become common. In relation to property management, the internet has evolved enough to introduce the concept of online property management.
With systems becoming automated and increasingly convenient, different software help individuals carry out all the vocational tasks online. The property management software is gaining popularity at a steady rate. Although it was expensive before, the new and cheaper versions are encouraging online property managers from around the globe to start their own property management businesses. Also known as the online asset management software, the online property management software is contributing to the decline in prices of property. This is mainly because property managers are now able to sell property online.
With the software in place, the set up costs of the business are eliminated and only a monthly product cost needs to be incurred by the property managers. Moreover, the providers of the software will accept a refund if the product does not perform according to the taste of the online property manager.
Related references and resources for property development uk:
Property Management, available at http://www.dre.ca.gov/files/pdf/refbook/ref22.pdf
Property Management Business Models, available at http://en.wikipedia.org/wiki/Property_management_business_models
Property Types Managed, available at http://www.irem.org/careers/career-development/property-types-managed
Property Management, available at http://en.wikipedia.org/wiki/Property_management
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4. Top UK Property Developers:
David Wilson Homes
Peter Ward Homes
Places For People
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