Property Management

The management of a property utilised for the purposes of commercial, industrial or residential. It mostly applies to the real estate market and is seen as a managed entity, as with a business or going concern.

The most important issue that needs mention is that of the relationship between the property manager or property management company with that of the rightful owner of that property. This relationship extends to the tenant and the property manager acts as the liaison between the two parties.

Property Management entails the overall management of the property and pertains to the advertising, and fulfillment of the tenant within the property. The property management firm will also attend to maintenance issues, as well as the collection of rent and other charges that become due by the tenant. Dependent on the mandate of the landlord to the property management company, will determine the amount of involvement of the property management firm with the financial affairs of the property.

Property management can also be utilised to project manage construction as well as property development and related repairs. This in turn allows the landlord to remain anonymous if so required, and allows the tenant and property management firm to establish a relationship in the process of this management exercise.

The level of involvement, as stated, of the property management firm can extend to the finer intricacies of property ownership, but acting on the owner’s behalf. This can extend to litigation, when necessary, regarding issues that might need legal intervention in and around the designated property.

The usual payment of the property management firm is derived from a percentage of the rent that is collected by the firm on behalf of the owner of the property; any additional work carried out on behalf of the owner, by the property management firm would be covered by separate agreements and or contracts.