Property Management

A property manager should provide a wide range of benefits and services for any real estate investor.
A property manager should have more time to spend in managing your properties. If you have a full time job then you would be managing your properties on a part time basis.
All property managers should have their own system that allows them to do tenant screening. Tenants list the lack of repairs being done as the primary reason they move out of a property. A property manager should be able to eliminate this reason for a tenant to move out by handling the repairs in a timely manner.


Property Management Company is the answer to many property owners and investors who are having a hard time managing their properties. Not all property management companies are alike. A good property management company must be consistently professional, responsive and thorough. Pick the one who values your property.
Expertise and competitive rental properties is necessary. The real estate property management company should work closely with the landlord in order to maximize rental income and return on investment for the property.
MARKETING STRATEGIES- Good marketing strategies of a company can attract more potential tenants to lease your property. Services and communication must respond to the members' needs.
Conflict Management Skills. Lastly, a quality property manager should be excellent in conflict management.


This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Some property managers have been known to require this fee upfront prior to tenant procurement. Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property.

A property manager may also justify this fee if they perform a year end inspection of property. Advertising Costs
Depending upon the property management company's contract, either they will pay the advertising costs or the owner or they could split the costs. To be fair, some managers legitimately deserve this fee especially if they have pocketed advertising costs, incurred lots of legwork and time invested in your property.
If your property manager will not negotiate, there are other property management companies that are eager to earn your business.

Property management software enables property managers to communicate more efficiently with suppliers, tenants and other stakeholders, and it has powerful online document management capabilities. Almost all property management software works for apartment complexes, commercial properties, home associations, condo associations, storage units, mobile home parks, and other rentals.

Property Management companies come in all sizes and shapes. If you have a large portfolio of properties or a large multi-family income property you can attract a variety of companies because many are paid as a percentage of rental income. You may find better service from a smaller property management firm.
Check with your local Property Management Association or apartment association for a list of local firms

Valid Brokers License: In may states a brokers license is required to operate a property management company. Management Fees: Property Management fees are generally a percentage of rental income. Fees can vary from company to company and you should shop around.  Maintenance Staff: Does the firm have its own maintenance staff? Does the company charge a fee on top off the management fee for major upgrades?
On Line Statements: Many firms will have on line monthly itemized statements available to owners.

Does the management firm allow tenants to pay online. Reserves: Most companies will require you leave some funds on deposit for small needs your property may require.  Vacancies: Do they charge a rental fee? Other companies allow prospective tenants use of the keys with a small deposit. If the management company staff shows the unit ask how often they will show and especially on weekends.

Property managers, portfolio operators, and property management companies are no different.
So what's the key to putting together and executing a great property management training program.
Resident management including billing, late notices, policy violations, evcitions, etc.
Next, define your specific training and education goals. Additionally, support the training plan with detailed standard operating procedures to make process plans and steps readily available to all associates. Finally, stand behind the training with testing to verify the success or identify the weakness of the training plan.

A good property management training manual will show you how to analyze investment real estate before you actually invest.
Good Property Management Training And Hidden Investment Selectors
What's the percentage of underwater homes in the market you're thinking about investing in?
Your rental property leveraged with a low rate will be competing with properties financed at higher rates, giving you more discretion in your rents.
In our property management training program we spend time talking about what property type is best of your individual investing personality.
Make no mistake, the type of property you choose to invest in will attract certain tenant types.

If your careful analysis doesn't reveal potential for the property at the price the seller requires, then move on to the next seller. When you look, you will find motivated sellers with opportunity laden properties. Perhaps owners who offer a generic property to a generic tenant can select customers by their credit scores and references. When you study the market (competing properties along with the dislikes, preferences, needs, and wants of various types of tenants), you're not attempting to discover market rent levels per say.

Property is a high value asset. The life of the professional landlord is not for the faint hearted. It works well for the property owner.
Before committing to a product the property owner should do a thorough audit of the business and make a list of essentials and a wish list. Look for a software product that includes a getting started training package. Establish also that, if needed, you will have access to on-site training, telephone training and internet bases assistance. Do not settle for a product that comes only with a training manual.

By choosing to implement the services of a residential property management company, an investor can optimize the value of their property investment by utilizing the expertise of professionals.
Marketing for the Right Tenants
A professional residential property manager would be able to focus the tenant advertising in the right portals to acquire the most appropriate tenants.

On-time Rent and Property Care
Paying rent is just the start. By having the right access to marketing information as well as assessment standards in place for tenant reviews, a residential property manager has the ability to increase the overall value of a property investment.

Marketing for the Right Tenants
A professional residential property manager would be able to focus the tenant advertising in the right portals to acquire the most appropriate tenants. On-time Rent and Property Care
By having the right access to marketing information as well as assessment standards in place for tenant reviews, a residential property manager has the ability to increase the overall value of a property investment.

One of the best ways to accomplish your property management tasks in an effective and efficient manner is to sign up for good residential property management software.
Often, property owners find themselves surprised when they find out that residential property management is not all about collecting rents from the tenants.

Residential property management software provides property owners the ability to track every single aspect involved when taking care of their residential property. Mentioned in this article are some important features that must be present in any residential property management software.
Furthermore, one can even create groups or segregate properties depending on the location, property values, or even based on monthly rental values.

Owning residential property can be a great investment especially if you are renting you're the property on a monthly basis and thus realizing a nice monthly income for yourself, but just because you own the property doesn't necessarily mean that you want to be a landlord and this is where a residential property management company can come in.

Because there are a number of residential property management companies to choose from it is important to know the answers to a few questions before you hire a company to manage your residential property for you.

How Will They Charge You: Some residential property management companies will charge you a flat rate per month and others will charge you a certain percentage of the rent.

Many residential property management companies will require that you sign a year's contract and this can be fine unless you find that you are not happy with their services.

A qualified property management firm will have minimum standards for tenant qualifications to help mitigate any potential risk for these adverse tenant issues. The time savings a residential property management firm can provide to a property Owner is extensive.

The residential property management firm almost certainly has pre-existing processes for screening tenants, seeking reference information and reviewing the property with the potential new tenants as well as having a prepared leasing contract that can be modified to accommodate any specific terms set by the property owner.

Usually, people get confused with the difference between a real property manager and a real property owner. Property managers are hired by the person who really owns the property. They are bound to manage a residential or commercial property.

Their duties are the following: find and screen renters, collect rents, arrange repairs for rental property maintenance and handle evictions. The hiring of manager is done by the property owner through signing a property management contract. Depending on the rental contract, late rental fees can be given to the real property owner or the management team. The guidelines are not applicable for properties that are non-residential commercial.

It is by getting the newest form of advertising that your business can top the competition in its form. In the world of business, competition among different markets is unstoppable. Each business never stops improving and developing ways to get more people into their business. Consider using internet for the promotion of your business.

Create your own website and post there your properties. Because internet provides faster access, your business will be able to reach more people. Join social networking sites. Post pictures of your properties to give them a clearer perception of your business.
Add more flavor to your internet advertising. Aside from posting photos, you can also upload videos. Share your video on YouTube and link it to your website for more public consumption.

The Conundrum of Investment Properties
Investors seeking diversification have frequently turned to a rental property or a collection of rental properties to even out and spread risk across their investment portfolios. A property management course and a course in basic real estate investment would be great investments of time for someone considering rental properties as a source of investment income and long-term investment. The fact is most real estate agents are not savvy enough to understand rental properties, cap rates, return on cash, return on investment, leveraged investing, and the common terms associated with investment properties.

The Property Management Profession is an Equalizer
If rescued timely a professional property manager can turn around an investment property and help make the investor's decision pay dividends. The property management company will take care of the investment, the maintenance, the tenants and all of the concomitant issues associated with the property.

Property Management Education Course
Educating both inexperienced real estate agents and beginner investment property owners about prudent property management is critical for maximizing the investor's return on investment.

Why? Because when it comes down to it property management is less about managing the property and more about managing people. Sure, the property has its requirements, but the property doesn't clog the toilet or beg to have a late fee waived. Situations involving tenant relations is where a property manager can really shine.
As part of the lease a late fee is now due and so you send a notice to notify the tenant of the late fee being assessed.

Instead of handling it all yourself you could hire a property manager to take over these duties and regain the most valuable asset you have, time.
By hiring a property manager you can prevent this situation from arising. Instead of you, the manager will be in charge of collecting the rent and all related charges.
 Are you OK with spending the free time you have on your property?

Have you ever considered a career as a property manager? Property management carries some unexpected challenges. What exactly is a property manager?
Basically, a property manager takes care of a property. While all tasks are not necessarily completed by the property manager directly, the manager is required to oversee and coordinate these and other needed tasks for the property.

Property managers are often employed by apartment complexes, rental agencies, and businesses with extensive property holdings. Sometimes they oversee one singular property while other property managers will have stewardship over multiple properties. Much job training will come on the job. Many property management professionals begin their career as assistant manager and learn the field while helping a current property manager with their daily tasks.

Many managers start in the field in smaller, lower-paying jobs. Are there any special skills a property manager should possess?
Managers work with a variety of people in many situations. Property managers also have to be able to handle pressure.

How is the work environment?
A property manager will have the opportunity to work both in and out of an office. Other tasks like property inspections will occur out of the office. Some managers oversee properties alone. While property management isn't the best paying job around, it does pay well. Managers are constantly on call.

Management focuses on conserving and building value NOW.
Most commercial real estate owners outsource the property management functions to a general brokerage firm that offers property management services or to a specialized property management company.

Few, if any, ideas for improvement come from the property manager for ways to improve the physical property or the leasing situation.
Managers understand the word "proactive".
Property management reports are irregular and hard to decipher.
I prefer real-time, online file-sharing between the owner or asset manager and the property manager.

This happens in both very large national firms and in small local management firms.
The management firm location is some distance from the managed property and you are not certain how often the property is physically visited by a property manager.
Nothing, absolutely nothing, takes the place of property site visits.

A property manager's responsibility includes ongoing routine contact with tenants. Personally, I prefer hiring property managers who live and work in the same market as the property over a big- name firm in a nearby city.
You receive regular reports about the property, but no information about the real estate market where the property sits.
A good property manager is invaluable and should receive incentives for peak performance.

For the private landlord, managing a property can be a busy and demanding job. Letting Services When you have a property to let, the level of customer service offered, patience and understanding by the letting agent should be exceptional. Property Management Costs In property management there are sometimes hidden costs which is why you should get a breakdown of exactly what you the costs are. Generally there is a one off fee for the property management service then the company will take a percentage of the monthly rent of the property.

Website and Properties A good letting company who are serious and professional about property management should really have their own website. Full property management service or advertising only With a full property management service landlords should look for some or all of the following: online advertising of your property on major websites such as Lettingweb, Rightmove or the major lettings portals that service your area; arrange property signboards and viewings; carry out credit checks and references; manage tenancy agreements, collection of rent and inspections; and provide contact for maintenance and repairs.

One of the most worthwhile forms of investment is property investment. You can invest in so many different types of property. The Need For Property Management Services
Who Would Need Property Management Services?

Using the services of a manager is ideal for those who do not live near their property. When you have purchased property in another country or State, the property's condition and tenancy need to be appropriately managed. This can be done with the help of Management services. Busy business professionals who do not have time to spend in managing their various properties will find such service extremely useful. Property managers are people with considerable experience in the field of management.

A property manager can do a variety of tasks and are great for people who have just way too many properties to deal with. Four Reasons Rental Property Owners Use A Property Management Service
There are numerous reasons to use a good property management services. After several late night emergency calls, you'd be pulling out your hair and getting out of the rental property business.

Many good property management services will have a maintenance staff that can deal with the issues that arise in rental properties. No matter what you pay, your property management service can always locate contractors who can deal with the repairs if it cannot be handled in service. Reason 3 - Legal Issues
Property management services can handle the legal aspects dealing with your tenants.

Management companies provide a wide array of property management services to investors. Determine the best rental rate
Market the unit to tenants
A competent property manager should have a lot to offer and be actively involved in the process of gaining new tenants.

Screen potential tenants
A property management company worth its salt will carefully screen potential tenants, perform the necessary background checks, grade the tenant according to predefined criteria and inform both the tenants who were selected and those who were turned down of the final decision.

Supervise tenant move in
A property manager will provide assistance to tenants during the move in process. Collect rent
Property managers are responsible for collecting rent from the property. Evict recalcitrant tenants
Provide legal advice
Most importantly, a competent manager will understand and abide by the latest local, state and federal legislation that apply to rental properties, minimizing the owner's legal risks.

Renting out your vacant property is a very good proposition. With the present downward trend in the market, renting out property is a very safe way to earn money. There are many companies who are engaged in doing this work. Services offered by them
There are various advantages of hiring a property management services company. Property management services are a complete service provided by these letting agents. They advertise your property and get the best tenant for you. They always try to appreciate the value of your property which in turn increases your rent.

Commercial or retail property management is quite special; the simple rules of residential real estate do not apply.
Whilst that concept may work in residential property management, the same does not apply in and with commercial or retail property. Commercial and retail property management are just far too specialized and complex to be a 'poor cousin' to anything.
Charge reasonable fees that are reflecting the complex and special tasks of the property management job

So what are the fees for managing commercial or retail property today? Here are some fees to consider in providing your property management services to commercial and retail property:
A base management fee should be set for managing the property on a day to day basis. That will include rent collection, income and expenditure management, tenant and lease management, and maintenance management. Take care when setting a fee for a retail property management and give due regard to your office and staff costs.
So how much profit should you make in running your commercial or retail property management division? Do not discount your property management fees to win the business; a quality service requires a fair and reasonable fee.

The All-Inclusive Fee. The Low Base Fee is just as the name implies... It is a low fee for minimal services. The thing to watch out for with Low Base fee structure is the "Lease Up Fee" or "Leasing Commission" as many refer to it. Most Low Base Fee property managers do NOT include this cost in their fees and they can double your property management fees right off! The all-inclusive fee structure on the other hand, pretty much includes all of these fees in its single fee.

In summary: If you will be performing some of the property manager functions like leasing your own property, paying your mortgage, insurance and property taxes, then, the low-base fee structure may be best for you.

The enigmatic "property management" fee
Property managers keep your property leased with paying tenants, and that's what makes property ownership either profitable or unsustainable. The management fee can be a percentage of the monthly gross rent or a flat fee. It pays for the property manager's time spent showing and advertising units, administering lease agreements, screening applicants and resolving tenant issues.

Administrative management
Collection fees
Maintenance fees

Maintenance fees cover interior and exterior repairs, minor improvements and cleaning.
Other unspecified fees
Property management companies all differ in what they include in their basic management fee schedule and what is considered "extra."

The fees of a property management firm will be distinctly different from other property management firms depending on if they specialize in commercial property or residential property. Other property management fees are the set-up fee and the leasing fee. The amount of this fee typically varies from one company to another.

Does your fee provide incentives for you to locate great tenants?

Do you charge extra fee amounts for showing a specific property? If yes, how much in extra fees?
Additional fees, you should inquire about include: lease renewal fees, advertising fees, maintenance fees, reserve fund fees and eviction fees. Each one of these fees will tend to vary in amount from one property managing company to another.

Property management companies come in all sizes, capabilities and expertise. Make sure these "years in the business" are related to property management and not sales only. Property Management Only or Sales also - Some investors will only hire companies that deal strictly in property management when it comes time to managing their rentals.

A company that offers both sales and property management can be very useful if you plan on buying multiple properties and want to work exclusively with one company for buying and managing all these properties. Real Estate or Brokers License - In order to practice business as a property manager some states require they process a Real estate or Broker's license.

Type of properties you manage - Some property management companies manage all types of properties while others specialize in one type, such as residential.

If you have a single-family house that needs managing, a company with 90% of its properties being commercial property may not be a good fit. Typically commercial and community association management is the most profitable for a property management company.

Some popular associations are "National Association of Realtors®" (NAR), "National Association of Residential Property Managers®" (NARPM®), "Institute of Real Estate Management®" (IREM®), "Community Associations Institute" (CAI), "Building Owners and Managers Association" (BOMA) and the "National Apartment Association" (NAA).

All property management companies generally charge this fee.
Lease-Up or Setup Fee
This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Some property managers have been known to require this fee upfront prior to tenant procurement.

Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property.

Lease Renewal Fee
This fee is charged to the owner when a property manager renews a current tenants lease and covers the costs of initiating paperwork or communication involved in implementing the new lease document. A property manager may also justify this fee if they perform a year end inspection of property. Advertising Costs
Depending upon the property management company's contract, either they will pay the advertising costs or the owner or they could split the costs.

Maintenance Mark-up Charges
Early Cancellation Fee
To be fair, some managers legitimately deserve this fee especially if they have pocketed advertising costs, incurred lots of legwork and time invested in your property.
Your property is vacant, but we still will charge our monthly commission or a small flat fee.
"A For-Rent Yard Sign Fee". "Preventive Maintenance Fee". If your property manager will not negotiate, there are other property management companies that are eager to earn your business.

Typically, property managers charge anywhere from 4-15% of the rental income to manage your properties. Just like with the selection of a property to buy, or the selection of a real estate agent to work with, or the selection of a tradesman to work on your properties, it is somewhat of a numbers game. I bought a property with tenants in it and by extension I got saddled with the agent who had originally rented it to them. As it was my very first investment property, I didn't want to have an agent manage the property for me, I wanted to manage it myself.

The same applies to agents.
You can lose your tenants and your rent very quickly if the property manager does not respond quickly to repairs or complaints from tenants. I had some tenants move into one of my properties and they had signed a lease agreement and paid a month's rent in advance as well as a security deposit.

The management company kept promising to send the roofer.
In the end, I lost my tenants, I lost money, and the management company lost me as a client.
Here are some additional facts that could be deal-breakers for a landlord in selecting a property manager.
One of the most frequent expenses a landlord can have with his property is plumbing. So if you get a property manager who seems reasonable, try to check out the tradesmen that he has on his books. As nice as the property manager may be, it's his tradesmen who can ruin your reputation as a landlord.
Now you are faced with an equally monumental task of checking out the capabilities of a prospective property manager.

The laws of a country change frequently and you, as well as your property manager, should keep on top of those changes. There are complex tax issues, laws governing those taxes, laws concerning tenant rights, landlord rights, evictions and contracts. You need to be prepared to spend a great deal of time and energy as a property investor. It's not a question of just finding a wonderful property. A property manager may not know that the building is developing dry rot.

So while you can always get yourself a property manager to handle the day-to-day operations, you cannot really afford to be an absentee property owner.

Asset management companies are companies that handle the assets of other companies. There are many assets that need management. There are many things that an asset management company needs to look into. It is among the jobs of the asset management companies to maintain proper accounts and bookkeeping records for the assets.

Asset management companies can provide several services to their clients apart from the routine inventory and asset control that they provide. In some cases, asset management companies would also offer their services in investment of assets for furtherance of the business prospects. In the past, asset management companies kept a physical track of their clients' assets. With the availability of asset management software, companies are able to automate the asset management process, and even make their reports look much more professional than before.

Real estate management companies can offer you the skills and services you need to maximize your investment properties. These companies are professionals who can market your properties, screen potential tenants, conduct all maintenance repairs and keep your properties running smoothly.
Real Estate Management companies are not all alike
Some management companies specialize in managing certain types of properties. Types of properties include single-family houses, condos, apartment complexes, commercial and Community association properties.

On-site and Off-site Property Management
Most of the time, you will use one of the off-site property management companies to help you maintain the rental of your properties. Benefits of Using Real Estate Management Companies
Being prepared with your own real estate management professional can help you with all your management needs.
Qualified management companies are dedicated to helping you receive the cash flow you need from your properties. All of your management needs can be met by one of the real estate management companies in your area, from buying real estate to renting your properties.

Many real estate investors have found that a good property management company can be a real asset, allowing them to leverage both their time and properties more effectively. Make sure to identify all the potential fees that a management company may charge by reviewing their management contract. Finances
A competent property manager will have a clearly defined and transparent process for handling tenant and owner funds. A good property manager will know the local market and perform solid research on the last 10-20+ recently rented comparables.

Collecting Rent
A seasoned management company will have a clearly defined process for collecting rent and dealing with late payments, bounced checks, and delinquencies. Inspections, Maintenance and Repairs
Ongoing maintenance is an area where a good management company will shine, and a poor company is likely to fail.

Tenant Marketing and Retention
Attracting the right tenants and keeping them is what property management is all about. Company Background and Qualifications
There are some general questions you should ask about a company's background and qualifications. How long have they been in business doing property management? The Property Management Agreement
The contract you sign with a management company will serve as the sole agreement between you and them.

A facilities management company is hired to manage the facilities of an owner occupied property such as a block of flats, a small hotel or a block or business park of offices. Many business parks and high rise office blocks are bought out by property companies who then lease them to businesses as fully serviced offices. A facilities management company that services offices will usually provide cleaning and maintenance services for the offices and deal with rubbish disposal. Not all management companies will offer things like janitorial services and reception services; a lot depends on how large the facilities management company actually is and how long they have been in business.

Property management companies serve as the middle man between landlords and tenants and alleviate much of the stress that inevitably comes from renting property. Customer Service

When you call up property management companies, pay close attention to their customer service. Company History
When interviewing property management companies, ask about the types of properties that they have managed in the past, and how long they have been managing the type of property that you are leasing. In addition to the history of the company, consider the amount of experience possessed by the company's employees. Fees
The services a property management company provides can range from ala carte to an all-in-one inclusive package. Property management fees should be outlined in you manager/owner contract.

Ask around to friends, family, and coworkers and get their recommendation for property management companies to consider. Different management companies offer different levels of commitment to the property.

Properties they manage - Property management companies are as different as car dealerships are to each other. You need to ask what types of property they manage and make sure your type of property is one they manage. If you own a single family home, a company that manages mostly large apartment buildings or commercial property would not be a good match. Inspections - A thorough property inspection should never be overlooked by a property management company. A property inspection can range from drive-bys, a walk-through or a video inspection. Maintenance - When it comes time to performing maintenance or repair work to their rental properties some property management companies have their own in-house maintenance personnel. The costs or hourly rate of any maintenance or repair work that is required will be dictated by the management company itself.

On the other hand, the management company may decide to outsource all or some maintenance work to outside vendors. In-house Maintenance
Some property management companies will add a surcharge or mark-up above the actual cost of any repair work to cover their time in acquiring these bids. Accounting - Most full service property management company will offer as a customary service some type of accounting procedure.

A Local Property Management Company will have local expertise and knowledge. Marketing Magic: Reduce the time your property is unoccupied by relying on the property management company's marketing expertise rather than the time and cost of advertising the property yourself. By adding your property to a property management company's rental listing, you can massively increase the chances that it won't be long before your property is occupied and you're making money from your rental property.
Tenant Relations: The property management company will take care of screening potential tenants, checking references and ensuring that the tenant is the best possible choice for your property.
A property management company will keep meticulous records of payments made by the tenants and delivered to you.

A large percentage of management companies charge 100% of the first month's rent to find a tenant for you. A property manager typically will list the property in a Multiple Listing Service, run a Craig's List Ad, and put up signs at your rental property. Make sure the leasing fee is only due when they successfully rent your rental property. Avoid National Real Estate Companies with a Property Management Division.

Because most of these companies are franchises they charge a ton of extra fees and higher commissions because of their franchise fees.
Stick with a local, non-brand property management company that does not sell homes for the majority of their business. You want a company that specializes only in property management.

There shouldn't be any advertising fees, but I have seen some management companies charge up to $750.

Many companies charge you $300-$500 to set up and process your rental property into their system. This fee really upsets me. It takes 5 minutes to put a rental property into a typical property management software. I have found numerous examples of management companies holding their owners hostage and threatening law suits if they fire them before the management contract is up. You will be very surprised about the various little fees some property management companies tack on in addition to the management fee.

Property Management Fees
Unlike a real estate sales commission, there is no standard commission that is charged for rental management services. Lease-up or set-up fee
Lease renewal fee
Advertising fees
Mark up charges on repair work
Early cancellation fee
Service call fees..etc

If I cancel prior to you placing a tenant in my property is this fee refundable?
Lease Renewal Fee

Do you charge me a fee when you renew a tenants annual lease that is soon to expire?
Advertising Costs
Who pays for advertising costs? Early Cancellation Fee
Is there a cancellation fee if I decide to cancel my contract with your company if after 3 months no tenant? All of the above are the most common fees to be charged for property management services.

In truth, most property management companies charge between 8-10% of gross rent collected for residential properties and 3-5% for commercial. There is a difference between a property manager and a property management company.

When you hire a property manager you are hiring an employee. When you hire a property management company you are simply outsourcing the management to a company. Here's the benefits of hiring a property management company when you first start purchasing rentals.

A professional property management company knows the law for landlords and will make sure you are doing everything legal
A professional property management company will know how to most effectively market your properties to achieve a low vacancy rate
You may decide to manage the properties yourself. You also want a company who specializes in your type of property.

The next are the income statement accounts. We talk about revenue accounts. There are late fees, application fees, and potentially interest. There are administrative fees, bank fees, supply expenses, salary expenses, payroll taxes and fees, and things of that nature.

Taxes - if you have unemployment or worker's comp you have to file those taxes. There are rent expenses. If you have a property manager you would have a management fee.
Insurance
Legal and Accounting Fees
There will be legal and accounting fees if you have an accountant or an attorney involved in your business.

Make sure if you've got payroll that you take money from the operating account and move it into the payroll account. Make sure you reconcile your accounts on a regular basis.

In commercial and retail property management, you will come across some landlords that are quite difficult to work with.

Over time the relationship between the property manager and the landlord can become quite stressful (even toxic) and impact the processes on the property.
Lease administration also requires special skills when it comes to tenant mix management, tenant analysis, and vacancy management.

Tenant management systems and processes will need to be implemented. Tenant management processes should incorporate good business procedure and attention to detail.

Many disagreements can occur as part of the day to day property management activity in any investment property.. This means that the property manager will need to understand what each landlord expects when it comes to income, expenditure, maintenance, reports, tenant mix, and vacancy management.

Optimizing income and managing expenditure is all part of the daily process when it comes to property performance and property optimization. Financial management is reasonably straightforward when it comes to a single tenant in a single property.

Property Management is a career profession. The Property Manager can work either directly for an owner of real estate properties, or for a property management company, contracted by an owner or legal entity to care for the real estate over a specific period of time.

The Property manager has a fiduciary relationship with the management company and property owner. The Property Manager is provided an owner's real estate portfolio to manage to its "highest and best use" in exchange for an employment contract or salary. Real estate assignments for the property manager includes apartment buildings, condominiums, hotels, storage facilities, shopping centers, office buildings, government subsidized properties, rooming houses, abandoned buildings and plots of vacant land, to name a few.

Managers are required to perform their work according to the laws of the land. Property Managers work on the Honor Code when they handle other people's money. By collecting rent, security deposits, laundry machine money et al, the property manager holds a fiduciary relationship with the property owner and/or management company. Lease expirations and renewals, rent increase letters, and rent invoices must be mailed on time. A skilled property manager is able to multi-task, keep site files organized, and prioritize repairs and assignments.

If everyone paid the rent on time by the fifth day of each month, the manager would not have rent collection work to do. If a property never had problems, such as toilet overflows, lost keys, or defective smoke detectors, a property manager would have little to do. A manager should at least like helping tenants with dignity, and in a responsible manager. Real estate and governmental regulations change; the manager must be willing to read up on them and stay current. Tenants depend on the manager's sense of obligation to the property and the families or professionals who live in it. Property Management is a fluid profession, in that it follows economic, governmental, industry, and societal changes that impacts how a property is managed.

The property manager will be the main point of contact between you, as the landlord, and the tenants. A good property manager will somehow get the tenant to pay the rent while a lousy one will throw a monkey on your back!
The tenants then may not renew their lease. Lease any vacant space.
A good property manager is critical in keeping your property fully occupied at the highest market rent, the tenants happy and in turn helps you achieve your investment objectives. Before choosing a property management company, you may want to:
The property managing company normally wants a contract for at least one year. Agent's Compensation: you will have to pay someone to manage and lease the property. You may have one company to manage the property and a different company to lease the property. Ideally, you want a lease in which the tenants pay for their share of property management fee.

Late fee: when a tenant pays late, he is often required by the lease to pay late fee. The property manager is allowed to keep this fee as an incentive to collect the rent.
Leasing fee: this fee compensates the property manager to lease any vacant space. In a typical lease contract, the leasing company wants 4-7% of the gross rent over the life of the lease. A good property manager will help you achieve this goal.
Monthly Report: each month the property manager should send you a report on income received, expenses incurred, and property status. Communication with property manager: in the first few months, you and the new property manager should communicate often to make sure things go smoothly.

Five Considerations of Hiring Property Managers
The property owner needs to understand the purpose of the management fee (typically 10%). The percentage management fee pays for the property manager's time. In the end, it is the owner's property and the owner's responsibility.
Working with a property manager is no different. If an owner is a high micromanager then they should hire a certain type property manager (see Property Manager categories below).

The owner's personality has to fit the property manager's systems and procedures. Sometimes owners will have difficulty with a property managers systems and procedures. Owners should understand they have to lead the property manager in how they expect the manager to manage the property.
While Property managers fall into three categories, the size of the property management company is neither better nor worse than the others. Small 1-50 units
Property managers in the small category are usually unlicensed with no training in property management. These managers will have more time for the property owner. Large management companies offer very little owner pampering and handholding.

Do your research and list questions you want to ask when interviewing prospective property management companies.
Who and how will your property be managed. Most property management companies are divided in two - selling real estate and managing real estate. Check with the property manager how long they have personally been dealing with property management. Some move into property management and the rest into sales. Other property managers have specifically chosen property management as their career.
You want to know that the property manager will give good customer service and personally take prospective tenants to inspect your property. You want to know how many properties the property manager manages personally. You want a property management company that can show your properties when it is convenient for the tenant. Does the Property Manager Check New Tenant's Credentials?
It is important to ask how the property management company checks out the credentials of short listed prospects. Does your property manager have adequate access to information for this purpose? You now have plenty of information to help you seek out the very best property manager for your growing property portfolio.

How major economic and demographic trends are creating new opportunities and challenges for property managers.
As another factor, consider that most baby boomers purchased their homes when home prices were substantially lower (as compared to household income) allowing most to pay off their principal residence mortgages early on. As baby boomers retire and are faced with an empty nest, they generally tend to downsize and move from larger single family homes to town homes or condominiums. What it means to property managers. However history shows that well selected and professionally managed, real estate is a secure and stable investment vehicle with solid income generation and capital preservation characteristics.

What it means to property managers.This phenomenon will see the flow of trillions of dollars of new capital into real estate properties that will by definition require professional property management services to maximize yield.
Large suburban lots, quiet cul-de-sacs and spacious 5-bedroom homes may have sounded like the epitome of high living to the baby boomer generation but to the typical gen Y'er the same phrases spell isolation and a maintenance nightmare. While not talked about nearly as much as baby boomers, generation Y whose leading edge turns the home buying age in 2008, constitutes a powerful market force to study, comprehend and plan for.
This generation which is an even larger demographic than baby boomers is already entering the home rental and purchase market, a trend that will be accelerating in the next few years.

Technology & Media. Real Estate Preferences. Survey after survey shows that core city living and walking urbanism are hallmarks of generation Y preferences for real estate. In his article titled Gen-Y Reshaping American Cities Rob Goodspeed quotes an important statistic: 77% of generation Y plans to live in core urban areas. According to Goodspeed the bulk of this generation will be entering the housing market around 2012.
What it means to property managers. The significance: property managers need to carefully consider how to appeal to this generation and its unique communication style.
What it means to property managers. This is another driver increasing the number of properties requiring professional management and therefore another long term contributor to the rise in demand for professional property management services.
The American dream is absolutely changing". All in all the above factors translate to further upward pressure on demand for core urban living which in turn contributes to further demand for property management services.

The demographic and economic factors discussed in this paper translate to a significantly growing demand for property management services. As droves of sophisticated, well-off and technology savvy consumers migrate to life in managed communities and as real estate becomes increasingly securitized, the standard of property management service will rise sharply. This will likely accelerate the current consolidation trend in the property management industry as quality leaders take market share. Property managers are seeing and should expect a significant influx of aging yet uncharacteristically active residents into managed communities in core urban areas. Property managers need to meet this generation on its own terms by providing powerful web presence and rich, up-to-date and interactive content about and access to their properties.

The above two trends will see communities of two distinct age groups: baby boomers and generation Y living side-by-side. Interestingly many of the property features and amenities that appeal to the boomer generation are also attractive to generation Y (e.g., hi-speed internet access, social space & fitness). Each generation has its distinct tastes, life schedule and communication preferences. There seems to be little doubt that these property managers will see tremendous increases in their occupancy and resident satisfaction rates and ultimately their market share.