Property management
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Property management is the operation of commercial, industrial and/or residential real estate. This is much akin to the role of management in any business.
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[edit] Roles
One important role is that of liaison between the landlord and/or the management firm operating on the landlord's behalf and tenant. Duties of property management include accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants. In exchange for the service they provide, property management companies charge landlords a percentage of the gross rent collected each month (often between
3-10%), in addition to lease commissions. If disclosed in the management agreement, repair costs may be marked up by some property managers. Some property management companies manage home owner associations (HOAs).
Property managers may manage construction, development, repair and maintenance on a property. Property manager relations with tenants gives a face to the landlord and provides them the necessary buffer servicing their desire to profit and distance themselves from their tenant constituency.
There are many facets to this profession, including participating in or initiating litigation with tenants, contractors and insurance agencies. Litigation is at times considered a separate function, set aside for trained attorneys. Although a person will be responsible for this in his/her job description, there may be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with applicable municipal, county and state laws and practices.
Property management, like facility management, is increasingly facilitated by computer-aided facility management software [1].
[edit] Licensing
[edit] United States
Most states require property management companies to be licensed real estate brokers if they are collecting rent, listing properties for rent or helping negotiate leases[2]. A property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker. Most states have a public license check system on-line for anyone holding a real estate salesperson or real estate broker's license. A few states, such as Washington, Idaho and Maine, do not require property managers to have real estate licenses.
Generally, property managers who engage in only association management need not be licensed real estate brokers. In Connecticut, however, a broker's license is required. Some states, while not requiring a real estate license, do require association managers to register with the state.
[edit] Professional Designations
Building Owners & Managers Institute International (BOMI) offers industry-standard designations that certify the training associated with Property Management:
- the Real Property Administrator (RPA)
- the Facilities Management Administrator (FMA)
- the Systems Maintenance Administrator (SMA)
- the Systems Maintenance Technician (SMT)
The National Association of Residential Property Managers (NARPM) has the following designations:
- Residential Management Professional (RMP)
- Master Property Manager (MPM)
- Certified Residential Management Company (CRMC)
- Certified Support Staff (CSS)
[edit] Other uses
The term property management is used to describe the practise of managing capitalized assets that are not real estate in nature, such as equipment and consumables. This is particularly the case in some post-secondary institutions, federal agencies and organizations that must manage government-furnished property, such as government contractors.
