Reviewed by Aug 27, 2020| Updated on
What is Property Management?
Property management is the supervision of residential, commercial, and industrial properties, including apartments, detached houses, condominium units, and shopping centres. It typically involves administering property owned by another party or entity. On behalf of the lender, the property manager works to protect the integrity of the property while producing revenue.
Property Management Explained
A few real estate brokers also work as property managers in land management. For example, a resort town broker may provide services to buyer's and seller's agents, as well as property management services. The real estate broker will also list, show, and lease vacation rentals when that is the case.
Property managers assist owners in creating budgets, advertise rental properties, qualify tenants, and collect rent. They also comply with the local landlord and real estate board laws and maintain the property. Preventive maintenance, cleaning, interior and exterior, and construction will all fall within the scope of the responsibilities of a property management firm.
Owners pay a fee or a percentage of the rent generated by a property while it is under management.
Need for Property Management Firms
For various reasons, property owners are hiring property management firms. Some landlords may have many rental properties in their portfolio but lack the expertise or time required to maintain the properties and deal with the tenants. Some owners have only an interest in owning rental property and profiting from them. They hire professional real estate managers in this situation.
Absentee landlords also take advantage of property management services. Owners of properties that engage in affordable housing programs often take advantage of property management services. It is because participating in such programs requires knowledge of federal guidelines that some owners do not have, despite wanting to reap the benefits of affordable housing programmes.
In India, major cities such as Bangalore, Mumbai, Hyderabad, and Chennai fall into the booming rental sector group. This is due to government policies, tax deductions, and the rapid growth of rental management firms across these cities.
The rental market experiences the additional housing demands due to mass migration to these cities. India is warming up to rental trends, such as communal living and co-living spaces leveraged by property managers.
Most rental homeowners are busy with working-class lifestyle. It can be strenuous to find a balance in the chaos of corporate life and manage assets at the same time. There is, therefore, a desperate need of the hour for property management companies to intervene to address the housing shortage and rental property management problems by managing and renting these assets promptly.