Property management has emerged as an extension of real estate investing. As soon as properties were built and sold, property management came in the picture. So let us have a closer look at property management, its primary roles and benefits.
What Is Property Management?
Property management is a very broad term and consists of everything from the operation of real estate to its control and oversight. Such a broad term also surrounds a great number of processes, including maintenance, building and repairs.
So what does property management actually entail in direct terms? Property management can be divided into various primary roles:
One of the most common tasks that fall under property management is the screening of applicants. This includes screening the credit of the applicant, checking their criminal history, rental history and their ability to pay.
Lease Contracting/Accepting Rent
A property manager is also responsible for the lease contracting and collecting the rent. In order to ensure the legality of this process, several legal documents must be drafted.
Property management also entails the maintenance of the property. Maintenance costs are usually limited to a pre-determined amount that is displayed in the lease agreement.
Property management comes with a number of benefits. Property management can cause less legal issues and is also cost-effective. Proper management will also lead to shorter vacancy cycles, and can allow you to better manage your time as the investor. Taking on a property manager or taking property management into your own hands can yield a great ROI (return on investment).