Investment property management is the practice of managing properties that serve as sources of income for the owner. In some cases, the owner may handle the management of investment properties alone. In other cases, an investment property management company may be called upon to provide a comprehensive and professional service. Management tasks include marketing properties, verifying tenants are qualified to rent, collecting money, handling evictions, and possibly taking care of maintenance issues.
The first task of investment property management is to find tenants that desire the property. This involves marketing the property to different potential occupants. The strategy will often change based on whether the property involved is being used for commercial or residential purposes. Understanding these differences and knowing where to advertise to reach the most potential candidates may be a process of trial and error and learned through experience.
When renting a vacant space, investment property management also involves meeting with prospective tenants and going over all terms and conditions. This often includes detailing any deposits and application fees required, along with doing a walk-through of the property with prospective tenants. During this tour, the investment property manager will usually note any damage, as well as explain the features of the unit or surrounding land.
Once a unit is rented, investment property management will often handle all financial issues. This means the collection of security deposits and other fees as imposed and agreed to in the contract, along with the monthly rent. Those who are late on the rent may require special attention from the property manager, who may choose to work out a suitable plan or begin the process of eviction. This also means paying all expenses incurred by the property, including taxes.
In most cases, an eviction proceeding is capable of being handled by an investment property management company or private owner. If there is resistance to the eviction, then an attorney will likely need to be called. The attorney can secure a court order at the request of the manager or owner to force the tenants to vacate the property in a certain time period, usually 30 days or less.
Also falling under the purview of investment property management is handling maintenance issues. This often includes the normal landscaping and snow removal, if required, along with handling repairs. The manager may choose to do these repairs with staff available, or may contract with outside companies for the work. Often, the decision to contract or handle the repairs in house will be influenced by the difficulty of the repair.