subject: The Role Of A Property Manager [print this page] The property manager is appointed by the owner to oversee the operation of a building. His or her traditional role is to create and enhance value on the expense side of the buildings balance sheet through efficient management. Today, property managers are often given the additional responsibility of leasing. These managers can then create additional value by increasing the income of the building.
The typical responsibilities of a property manager include:
collecting rent
making bank deposits
conducting retail tenant audits
supervising maintenance services
coordinating a security program
initiating a marketing program
coordinating leasing activity
maintaining tenant and public relations
supervising property management staff
monitoring all insurance lease requirements of tenants
challenging property tax assessments
overseeing tenant improvements
making regular reports to management
developing a working relationship with the owners attorneys
enforcing provisions of the lease
For the small investor, the purchase of their first investment property is one of the most important decisions they will make and has often been taken only after a long period of investigation. Typically they are nervous about the purchase, and the quality of the tenants who will live in the dwelling, and are looking for peace of mind, as well as a fair return on their investment. The engagement of a property manager should allay those fears and leave the day-to-day management of the property to a professional. Most investors with larger portfolios have an established relationship with their property manager, and believe this is a large part of their investment success.
The role of a property manager requires a unique blend of communication skills, technical knowledge of property legislation and management, the ability to remember details of multiple properties and a touch of human psychology.
The property manager usually enters the transaction when the owner contracts them to find a suitable tenant for their property. This is the start of the relationship building exercise, and any indication of a lack of knowledge or a demonstration of any unprofessional conduct by the property manager will have the owner lacking confidence that their property will be in safe hands. Short-cuts like inadequate screening of tenants, failure to have contracts signed prior to occupancy or lack of knowledge of the agency management systems will have alarm bells ringing.
A poorly maintained property will soon become uncomfortable for a good tenant, and if no action is taken to rectify the situation, they will move on, the owner will lose revenue and the reputation of the agency could be damaged.
The relationship between a property manager and their client, the property owner, if properly nurtured and managed, can become a mutually beneficial, long term business proposition, especially if the owner adds additional properties to the portfolio. With industry knowledge, good interpersonal skills and attributes like patience and integrity, the right person can build a solid career in property management.
