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Comon Questions and Answers Source: http://www.allpropertymanagement STATISTICS - There are over 115,000,000 housing units in the United States.
- Almost 1/3 of all U.S. housing is rented.
- 60% of U.S. rental housing is owned by individual landlords.
- Almost 60% of all housing is detached single family homes.
WHAT DO PROPERTY MANAGERS, OR REAL ESTATE MANAGERS, DO? - What types of real estate do property management companies oversee?
- Property managers manage all types of properties, including homes, apartments, mobile home parks, stores, offices, industrial properties, and storage facilities.
- Why should I hire a professional property management company, or real estate management company, to manage my rental property?
- If you lack the time or expertise needed for day-to-day management of your commercial or residential real estate investments, an expert property manager can help you.
A property management company can help you: - Market your rental property to minimize vacancies and maximize income (link: Property managers make their livings because they know the rental market, what comparable properties are renting for, and what potential renters are willing to pay for a rental property. They have the marketing know-how to reach potential renters and they have the experience and resources to weed out potential bad renters);
- Fill vacancies with the best possible tenants;
- Maintain and keep your rental property in good condition (link: Property managers handle and coordinate routine repairs as well as emergency repairs. They have the experience to avoid unnecessary repairs to save you money);
- Track income and expenses to determine profitability;
- Negotiate rental agreements;
- Collect rent and track tenant deposits;
- Comply with federal, state and local laws; and
- Respond to tenant requests and deal with problem tenants
In short, property managers help you make the most from your rental property and they can save you time. - I live far from my rental property. Does it make sense for me to hire a property management company to manage my property?
- A local property manager can keep an eye on your rental property to make sure that the tenants are taking good care of it. Local property managers tend to find problems sooner and correct them more efficiently. In addition, local property managers often have contractors they work with and trust for various repair jobs, which can save rental property owners money and time.
- Can a property manager help me find and keep good tenants?
- Often, good tenants will rent only through a reputable property manager because everything from initially viewing the property, to negotiating and signing the lease agreement, to dealing with maintenance and repairs, to making rental payments is more efficient and streamlined if a professional company located in the area is coordinating providing the service.
- Can a property manager help me avoid bad tenants?
- Typically bad tenants will target owner-managed rentals because they can't pass muster with property managers. They know that when a property is for rent by owner the rent will be less and there will be less scrutiny of their financial situation. Because bad tenants can't be evicted without notice and an eviction can take months and cost you money, property managers will track references and do their utmost to avoid potential bad tenants and associated eviction problems.
- Will a property manager show my property?
- Yes. While it may be inconvenient for you to take time to show your property, and to deal with potential renters who may not show up for their appointments, it is a property manager's job to respond quickly to requests from potential renters to view a property and property managers can also pre-screen potential tenants.
- Can a property manager or real estate manager help me with administrative and financial details?
- Yes. Generally, property managers and real estate managers handle the financial operations of the property, ensuring that rent is collected and that mortgages, taxes, insurance premiums, payroll, and maintenance bills are paid on time. In community associations, although homeowners pay no rent and pay their own real estate taxes and mortgages, community association managers must collect association dues. Some property managers, called asset property managers, supervise the preparation of financial statements and periodically report to the owners on the status of the property, occupancy rates, dates of lease expirations, and other matters.
- Can a property manager help me with upkeep and maintenance of my investment property?
- Yes. Property managers negotiate contracts for janitorial, security, groundskeeping, trash removal, and other services. When contracts are awarded competitively, managers solicit bids from several contractors and recommend to the owners which bid to accept. They monitor the performance of contractors and investigate and resolve complaints from residents and tenants when services are not properly provided. Managers also purchase supplies and equipment for the property and make arrangements with specialists for repairs that cannot be handled by regular property maintenance staff.
REAL ESTATE PROPERTY MANAGERS - What is a property manager or real estate manager?
- A property manager, or real estate manager, oversees the performance of income-producing residential or commercial properties, and ensures that real estate investments reach their expected revenues.
- What is a commercial property manager?
- A commercial property manager oversees income-producing commercial properties, such as retail or office spaces, shopping centers, industrial spaces and storage facilities.
- What is a residential property manager?
- A residential property manager oversees income-producing residential properties, such a single-family homes, duplexes, townhouses, apartment complexes and mobile home parks.
- What is a community association manager?
- A community association manager manages the common property and services of condominiums, cooperatives, and planned communities through their homeowners' or community associations.
In many respects, the work of community association managers parallels that of property managers. They collect monthly assessments, prepare financial statements and budgets, negotiate with contractors, and help to resolve complaints. In other respects, however, the work of these managers differs from that of other residential property and real estate managers. Community association managers interact on a daily basis with homeowners and other residents, rather than with renters. Hired by the volunteer board of directors of the association, they administer the daily affairs, and oversee the maintenance of property and facilities that the homeowners own and use jointly through the association. They also assist the board and owners in complying with association and government rules and regulations. Some associations encompass thousands of homes and employ their own onsite staff and managers. In addition to administering the associations' financial records and budget, managers may be responsible for the operation of community pools, golf courses, and community centers, and for the maintenance of landscaping and parking areas. Community association managers also may meet with the elected boards of directors to discuss and resolve legal issues or disputes that may affect the owners, as well as to review any proposed changes or improvements by homeowners to their properties, to make sure that they comply with community guidelines.
- What is an asset property manager?
- An asset property manager supervises the preparation of financial statements and periodically reports to the owners of the rental property on the status of the property, occupancy rates, dates of lease expirations, and other matters.
- What type of training is required to be a property manager?
- Many property management companies encourage attendance at short-term formal training programs conducted by various professional and trade associations active in the real estate field. Employers send managers to these programs to improve their management skills and expand their knowledge of specialized subjects, such as the operation and maintenance of building mechanical systems, enhancement of property values, insurance and risk management, personnel management, business and real estate law, community association risks and liabilities, tenant relations, communications, and accounting and financial concepts. Completion of these programs, related job experience, and a satisfactory score on a written examination lead to certification, or the formal award of a professional designation, by the sponsoring association. In addition to these qualifications, some associations require their members to adhere to a specific code of ethics. In some States, community association managers must be licensed.
- What is a certified property manager?
- A certified property manager has taken a series of examinations from an accredited continuing education organization.
- What types of certifications are available for property managers?
There are many different types of certifications for property managers. Look for membership and credentials from the following organizations: o The National Apartment Association o The Community Associations Institute o The Institute of Real Estate Management o The Building Owners and Managers Association o National Association of Residential Property Managers - What are the responsibilities and duties of onsite property managers?
- Onsite property managers are responsible for day-to-day operations for one piece of property, such as an office building, shopping center, community association, or apartment complex. To ensure that the property is safe and properly maintained, onsite managers routinely inspect the grounds, facilities, and equipment to determine if repairs or maintenance are needed. They meet not only with current residents when handling requests for repairs or trying to resolve complaints, but also with prospective residents or tenants to show vacant apartments or office space. Onsite managers also are responsible for enforcing the terms of rental or lease agreements, such as rent collection, parking and pet restrictions, and termination-of-lease procedures. Other important duties of onsite managers include keeping accurate, up-to-date records of income and expenditures from property operations and submitting regular expense reports to the asset property manager or owners.
- What are the responsibilities and duties of offsite property managers?
- Property managers who do not work onsite market vacant space to prospective tenants through the use of a leasing agent or by advertising or other means, establish rental rates in accordance with prevailing local economic conditions, screen tenants, negotiate lease agreements, collect rent, arrange for maintenance, repairs and upkeep of the building and grounds, and deal with problem tenants.
- How do property managers keep track of so many properties?
- Many property management companies use property management software and property management programs to keep track of repairs, rent collection, communications, inspections and lease renewals.
- Do property managers have flexible hours so they can meet the schedules of tenants, potential renters and owners?
- Yes. Property, real estate, and community association managers often must attend evening meetings with residents, property owners, community association boards of directors, or civic groups. Not surprisingly, many managers put in long workweeks, especially before financial and tax reports are due. Some apartment managers are required to live in the apartment complexes where they work so that they are available to handle any emergency that occurs, even when they are off duty. They usually receive compensatory time off for working nights or weekends. Many apartment managers receive time off during the week so that they are available on weekends to show apartments to prospective residents.
- Who do property management firms hire as property managers?
- Most employers prefer to hire college graduates for property management positions. Entrants with degrees in business administration, accounting, finance, real estate, public administration, or related fields are preferred, but those with degrees in the liberal arts also may qualify. Good speaking, writing, computer, and financial skills, as well as an ability to tactfully deal with people, are essential in all areas of property management.
- How does one become a property manager?
- Many people enter property management as onsite managers of apartment buildings, office complexes, or community associations, or as employees of property management firms or community association management companies. As they acquire experience working under the direction of a property manager, they may advance to positions with greater responsibility at larger properties. Those who excel as onsite managers often transfer to assistant property manager positions in which they can acquire experience handling a broad range of property management responsibilities.
Previous employment as a real estate sales agent may be an asset to onsite managers because it provides experience useful in showing apartments or office space. In the past, those with backgrounds in building maintenance have advanced to onsite manager positions on the strength of their knowledge of building mechanical systems, but this is becoming less common as employers place greater emphasis on administrative, financial, and communication abilities for managerial jobs.
Although many people entering jobs such as assistant property manager do so by having previously gained onsite management experience, employers increasingly hire inexperienced college graduates with bachelor's or master's degrees in business administration, accounting, finance, or real estate for these positions. Assistants work closely with a property manager and learn how to prepare budgets, analyze insurance coverage and risk options, market property to prospective tenants, and collect overdue rent payments. In time, many assistants advance to property manager positions.
CHOOSING THE RIGHT PROPERTY MANAGEMENT COMPANY - What should I look for in a property manager?
- Look for experience in important areas, such as maintenance, leasing, collections, marketing, advertising, tenant relations, financial analysis and budgets, and knowledge of relevant local and state laws.
In addition, many property managers are credentialed by national industry organizations, which can help you narrow your search.
- How can I search for a property management company?
- To search for property management companies Click Here (http://www.allpropertymanagement.com/find/form.php)
REAL ESTATE ASSET MANAGERS - What is a real estate asset manager? Do property managers ever give advice on selecting and purchasing investment properties?
- Some property and real estate managers, often called real estate asset managers, act as the property owners' agent and adviser for the property. They plan and direct the purchase, development, and disposition of real estate on behalf of the business and investors. These managers focus on long-term strategic financial planning rather than on day-to-day operations of the property.
- How can a real estate asset manager help me if I'm thinking about purchasing investment property?
- When deciding to acquire property, real estate asset managers take several factors into consideration, such as property values, taxes, zoning, population growth, transportation, and traffic volume and patterns. Once a site is selected, they negotiate contracts for the purchase or lease of the property, securing the most beneficial terms. Real estate asset managers periodically review their company's real estate holdings and identify properties that are no longer financially profitable. They then negotiate the sale of or terminate the lease on such properties. Real estate asset managers must be good negotiators, adept at persuading and handling people, and good at analyzing data in order to assess the fair market value of property or its development potential.
- Can property and real estate managers help me develop property?
- Yes. Property and real estate managers who work for homebuilders, real estate developers, and land development companies acquire land and plan construction of shopping centers, houses, apartments, office buildings, or industrial parks. They negotiate with representatives of local governments, other businesses, community and public interest groups, and public utilities to eliminate obstacles to the development of land and to gain support for a planned project. It sometimes takes years to win approval for a project and, in the process, managers may have to modify plans for the project many times. Once cleared to proceed with a project, managers may help to negotiate short-term loans to finance the construction of the project, and later negotiate long-term permanent mortgage loans. They then help to choose, assist, and advise the architectural firms that draw up detailed plans and the construction companies that build the project. Resourcefulness and creativity in arranging financing are essential for managers who specialize in land development.
PROPERTY MANAGEMENT AND THE LAW - What if a tenant needs evicting?
- Even though a property manager will do everything possible to avoid problem tenants, if an eviction is necessary, the property manager can help you deal with the whole process, from providing the required eviction notices, to filing court documents and working with the local sheriff.
- Do states require that property managers be licensed?
- Most state require that a property manager have either a property management license or a real estate license.
- Can a property manager help me comply with federal, state and local laws?
- Yes. Property managers must understand and comply with provisions of legislation, such as the Americans with Disabilities Act and the Federal Fair Housing Amendment Act, as well as local fair housing laws. They must ensure that their renting and advertising practices are not discriminatory and that the property itself complies with all of the local, State, and Federal regulations and building codes. Property managers also have the resources and knowledge to help evict problem tenants.
In short, property managers know your rights and obligations as a landlord, which could limit your liability exposure.
HIRING A PROPERTY MANAGER Regardless of the type of property, a written agreement between the owner of the property and the manager is very important, as the manager will be taking on significant responsibilities with the owner's real estate. At the very least the contract should: o Identify the parties and the property o Specify the length of time of the contract o List the responsibilities and the authority of the manager o List the responsibilities of the owner o State the fees and leasing or sales commissions and o Include the date of the agreement and the signatures of the parties.
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