Encinitas Property Management - To Tow or Not to Tow?
Encinitas Property Management - To Tow or Not to Tow
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Encinitas Property Management - What does a Property Management company actually do?
There are a number of property management companies out there, but what does a property management company do, exactly? Most definitions for "property management" describe it as the operation of commercial, residential, or industrial real estate, but you may be thinking, that theres slightly more to it than just that, and youd be correct.
Property management falls into two main categories; rentals and homeowner associations.
Many management companies provide only one of these services. In order to manage rentals, one requires a license, whereas the managing of homeowners associations presently does not require this.
Rental management involves 4 facets:
1. Preparing the property for new tenants
2. Assessing and evaluating prospective tenants
3. Managing any issues that may arise involving the tenants or the safety of the unit
4. Providing accounting services
Each facet is an important function performed for the landlord.
1. Preparing the property for viewing plays a crucial part in obtaining good tenants. If the unit is fresh and clean, it is thus more attractive to prospective tenants, and sets an example of how the landlord wishes for the rental to be treated, and also the condition in which it is expected to be left in, on move out.
2. In checking work and previous landlord references, as well as examining credit reports, a good tenant can be found. This screening process helps to separate the more reliable, from the less dependable. From time to time a tenant may loose their job, or suffer a costly injury/sickness, however in this case if their credit is unblemished then they may be able to financially stay afloat during this crisis. Whereas, poor credit and lack of resources may hinder recovery.
3. Inspecting the rental property is the key to superior management. By visiting the property frequently, items will be revealed that are in need of repair, and it should be noted that repairs noticed early on, will be less costly than a repair that fails to be noticed, and may have to be fully replaced, thus being more expensive.
4. Accurate accounting practices with access to these records is key. Our customers have 24 hour access 7 days a week to their financial history online. We also carry a fidelity bond in the case of misappropriation by an employee.
Homeowner association management
This is similar to managing a rental property, but requires additional work. Usually, the owners have been organized as a non-profit corporation under the 'Davis Stirling Act' of 1985, for common interest subdivisions. As a consequence of this, they must file tax returns and file biennially with the State. In addition, they have 'governing documents' which state how they will behave in terms of voting, collecting dues, violations of the rules etc.
The affairs of the community must be well organized, and the members are expected to be guided by a certain code also. Poor governing and lack of communication may lead to the downfall of such organizations.
Long term planning for the renewal and replacement of what is known as 'common area property' is also key. For example, matters such as roofing, clubhouses, termites, plumbing and painting. Some owners expecting to live within the community for a long period of time might want to set aside funds on a regular basis for future plans, whereas owners planning on leaving the property relatively soon, may prefer to defer the cost.
Elected community representatives known as 'The Board of Directors', help to enforce such decisions, and it is the community manager's role to record these decisions.
In review, a good property management company takes responsibility for the life cycle of a real estate property, from acquisition to preparation to accounting. Finding a good property manager who is responsible, open, and honest is key for anyone who wishes to maintain a good relationship between tenant and owner.
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