Property management companies are utilized to manage many types of properties, including offices, industrial properties, storage facilities, stores, homes and apartments. They often are used when the property owner's location is different from the actual property or when the owner does not have the time, resources or expertise necessary for day-to-day management of the property. The role of a property manager can include many responsibilities, such as marketing the property, filling vacancies, maintaining the property, tracking income and expenses and negotiating rental agreements.
Commercial and residential property managers typically understand the rental market better than the owner and can find potential renters quickly and efficiently. They usually are experts at knowing what comparable properties are charging as well as knowing what the market's growth rate looks like. Property management companies have the advertising resources that are needed and understand what mediums will attract the best renters.
Many owners look to property management companies to fill vacancies with the best tenants. Some renters will work only with streamlined property management professionals, because the entire process tends to flow more smoothly. The rental property manager typically shows the property and is the main point of contact for any repairs, emergencies and payments.
Maintaining the property on a daily basis is another service that many property management companies provide. This might include routine services such as landscaping and janitorial management as well as coordinating resources in emergency situations such as flooding or power outage. Property managers usually have repair personnel or companies available and have established rates with them to help the owner save money.
Some property management companies track and manage all financial records, including profits and expenses. This might help the property owner avoid tenant rent-paying issues as well as ensure that taxes, insurance and maintenance bills are paid in a timely manner. When the property manager acts as an asset manager, he usually reports on the vacancy status, occupancy rates, upcoming lease expirations and other items.
Many property management companies provide rental agreement negotiations on behalf of the property owner as well. This can be a timely process, because it usually requires extensive market research and the ability to be flexible when the market changes. Property managers usually have the authority to offer discounts when long-term leases are signed or when a lease is being renewed. Successful property management companies typically ensure that the owner still makes a profit by offering tenants different pricing strategies.