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How to Select A Property Manager or Property Management Agency

What is property management? What does a property manager or property management company do?

Property management is the operation of commercial and/or residential real estate. Property managers or property management companies are often hired to serve as liaisons between a landlord and the tenants. Some manage home owner associations (HOAs). Property managers may also manage property construction, development, repair and maintenance. Their primary duties often include accepting rents, as well as responding to and handling maintenance issues, evicting tenants (if needed) and advertising and filling vacancies which includes screening and selecting tenants.

At times, property managers may be involved in and/or initiating litigation with tenants, contractors or insurance agencies. Litigation is frequently considered a completely distinctive role which can be handled by or in consultation with trained attorneys. In situations where a property manager is not working in consultation with an attorney, special attention must be given to Landlord Tenant Law, especially when dealing with evictions, non-payment of rent, harassment, reduction of pre-arranged services, and public nuisance. Therefore, property managers must keep up to date with new laws and practices in the localities, cities and states in which they manage property.

Property management fees are commonly based on a percentage of the gross rent collected each month (typically 3%-10%), and may also include lease commissions as well as additional fees to cover repair and maintenance costs.

Some states require property managers and/or property management companies to be licensed real estate brokers or that they be licensed real estate salespersons working with licensed real estate brokers. Other states that do not require licensing require property managers and/or property management companies to register with the state.

Property management is gradually becoming more and more reliant upon computer-aided facility management software. Please, visit our Real Estate Property Management Software page.

Things to consider before you hire a property manager:

How to find a property manager or property management company?

Locate Property Managers Through the National Association of Residential Property Managers (NARPM)

Don't Forget About Property Insurance!

Find Landlord Dwelling Property Insurance
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