Thinking About Property Management? 5 Things to Consider Before Getting Into This Field
A property manager may be required to handle more than just the basics of collecting rent and overseeing building repairs. In general, having effective interpersonal, decision-making, marketing and communication skills are important to being successful as a property manager. You may be required to perform accounting duties or act as a market analyst as well as have salesperson skills and persuasive skills. Also, as you work directly with tenants, contractors and employees, you will need to be an effective problem solver. You must handle tenant complaints and quickly find solutions, while making sure that you act in the best interest of the property owner.
Rental Contracts and Property Management Agreements
As a property manager, you must have a clear understanding of the details of a typical rental agreement and other types of real estate contracts. In addition to landlord-tenant contracts, you will enter into property management contracts and establish fees for your service. Other real estate contracts that you should be familiar with are purchase contracts, maintenance contracts and licensing contracts.
Policies and Procedures
As a property manager, you must be able to establish guidelines for tenant relationships, including monthly rental amounts and late fees. You should know the landlord-tenant laws in your state and your rights to enforce contract terms. You should also be familiar with standard policies for the maintenance of buildings as well as the local building codes in your area.
Because you will be responsible for collecting rent, assessing charges and entering into agreements with contractors, you should have an understanding of the fundamentals of accounting, such as maintaining balance sheets and income statements. You will need to keep a record of all expenses and income.
Property Insurances and Related Costs
Depending on your specialization and the type of property you’re managing, you may handle properties with a few tenants or hundreds as well as properties that have a consistent turnover rate for tenants. It is important to maintain tenant liability insurance. You should also invest in property management insurance to protect your investment in the property. Preferred Insurance is a company that does insurance in London, and a great example of services that property managers should consider.
Although property management is one of the fastest growing professions, being a successful property manager involves dedication to the profession and expert knowledge and skills. Before getting into this field, become knowledgeable of the day to day tasks as well as the ins and outs of what it takes to be successful on the job.