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What are Property Management Services?

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  • Written By: Summer Banks
  • Edited By: Michelle Arevalo
  • Last Modified Date: 07 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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Property management services refer to a person or company hired to control the maintenance and rental of a given piece of real estate. The property manager can be hired to manage both residential and commercial real estate as needed by the client. While some property managers are hired only to find and screen a potential renters or leasers, others are kept on after the contractual agreements have been reached to maintain the property. Some of the major roles of property management services include screening potential tenants based on owner specifications, maintaining communication between the owner and tenant, and scheduling regular and as-needed maintenance on the property.

One of the primary roles of the rental property manager is to screen potential tenants interested in renting or leasing a given property. This role can be the responsibility of both residential and commercial property managers. The screening process will often depend on a set of qualifying criteria outlined by the owner of the property. The screening process could include a background check, credit check, and reference check.

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During the screening process and after the contract for residence has been established, property management services may be responsible for maintaining communication between the owner of the property and the tenant or potential tenant. This communication may end after the lease is signed, but could continue if the owner wishes to keep a liaison to buffer his communication with the tenant. This is often the case if the owner lives far away from the location of the property.

Property management services do not have to stop at the communication and screening roles. Some companies will also be contracted to handle the maintenance and upkeep of the property during the lease or between leases. The owner will often leave the maintenance choices up to the residential property manager or commercial property manager if they fall within a certain cost. If the maintenance or repair will cost more than the set amount, the company may be required to contact the owner before proceeding with any repair work.

Property management services provide an invaluable link between tenants, and potential tenants, and the owner of a piece of real estate. In certain areas, government may require the business or person to be licensed in order to collect money or negotiate lease contracts. It is important to check for any such regulations before offering any property management services to property owners.

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sunshine31
Post 3

@Subway11 - I considered going into property management a while back because I have always loved real estate and own an investment property and thought this would help me manage my own properties better.

I was told that I needed to have a real estate license and have designations in property management. I was also told that property manager jobs are very much in demand and a good property manager can earn about $80,000 a year. It really depends on the size of the property.

subway11
Post 2

@Sunny27 - I think that you have to find the right property management company because some are great and some are not so good. Their rates are different too. There are some property management companies that take 50% of the gross revenue while other will only take 15%.

Sunny27
Post 1

I just wanted to say that rental property management services can be a life saver if you own vacation properties in another state. I have a friend that lives in Florida and owns a couple of cabins in the Smoky Mountains that are managed by a property management company.

They tooke care of renting the cabins, cleaning the cabins in between guest stays as well as collecting the rental income. She gets a monthly check sent from the property management company but they do take about 40% of the gross rental income as their fee.

It is worth it because she still nets about $12,000 a year after all of her expenses so it is not too bad.

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