Table of Contents
- What is Property Management?
- What does a Property Management Company do?
- How Much do Property Management Companies Charge?
- What is a Property Management System?
- What is the Difference Between Property Management and Facility Management?
What is Property Management?
Property management is the management and overseeing of a real estate asset by a property management firm or property manager. The property being managed is typically owned by another individual or entity, and may range in type, such as residential, industrial or commercial real estate.
The properties managed by these property management firms, or property managers, are usually investment properties, which serve to generate returns for its investors through capital appreciation or passive rental income.
What does a Property Management Company do?
The role of the property manager is to handle the property and ensure that it retains or grows in value. The property manager’s specific duties include administrative tasks such as screening potential tenants, documenting and approving leases on behalf of the property owner or investor, collecting rent from the tenants, and arranging evictions if necessary.
They are also responsible for maintaining the physical property, such as arranging for any landscaping or repairs that need to be done on the building, and regular maintenance.
How Much do Property Management Companies Charge?
In return for these property management services, the property owner pays fees - either a specific sum, or a proportion of the income produced by the property during the management period. While both payment structures are used, most property management companies charge a percentage of the rent as their fees. This also has the benefit of aligning property managers’ interests with investors, as it is in both their interests to maximise rent and run the building smoothly.
What is a Property Management System?
A Property Management System is a software system that allows for the management of properties, including the physical property, maintenance, legal procedures and staff, through a single integrated system. These Property Management Systems are a form of technology used to increase efficiency, moving on from inefficient paper-based methods of Property Management used in the past.
What is the Difference Between Property Management and Facility Management?
Property management involves the management of the physical property, administrative duties and tenant management of an entire property. Facility management, on the other hand, focuses on specified spaces for certain tenants within a leased property, or may also cover certain owner-occupied properties.
Their duties overlap with property management duties in areas like maintaining the physical space, managing personnel where applicable, and the maintenance of equipment on the property. However, facility management also includes additional responsibilities such as coordinating spaces within the property, arranging the movement or reconfiguration of internal areas, and performing troubleshooting on facilities within the property.
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