The operation of administering a real estate property is known as property management. In order to conserve the value of the real estate property and at the same time generate profit, the property manager is assigned by the owner to act on his or her behalf, if the manager is not the actual owner. Administered properties may include vacation homes or other areas of residential real estate, commercial spaces, and buildings. Property managers accept compensation from the percentage of the rent that is provided by the property while under administration.
There are certain duties that must be duly exercised by a property manager. One is the market and financial function where the comprehension of operating costs and budgeting must be understood. From this area of responsibility, proper rental rates must be established. Marketing strategies must also be conducted to attract tenants.
Another is the understanding and meeting the needs of the tenant. Facility management is vital, including the physical administration of the structures and outdoor spaces of the property. The execution of building maintenance falls under this certain function to make sure that all facilities are in good condition at all times. Property managers also handle risk control, including the proper documentation activities. This is where all government reporting requirements must be executed and submitted accordingly.