7 Common Duties of a Real Estate Management Company

If you are looking to rent your property, you’ll likely need the services of a real estate management company. A real estate management company is a professional, 3rd party management company that acts as your “eyes and ears” when you aren’t able to actively manage your property, including the needs of any tenants. This can save you time and money by handling all of the issues related to your residential or commercial property. 

The exact responsibilities will depend on both the company’s areas of expertise as well as your specific arrangement, but the most common duties include repairing and maintaining a real estate property, financial reporting for your investments, and managing tenants effectively. Read on to learn how each can benefit you and your property and how property management companies can optimize your portfolio.

Real Estate Maintenance & Repair

GNP Realty Office: Real estate management company

When you hire a company to manage your residential or commercial property you transfer the responsibility of caring for, maintaining and making repairs to your property. By heading up the maintenance and repair of your property, the property manager can transfer the benefits of vendor/contractor pricing, as well as other time and resource efficiencies, to you and your property.

A real estate management company will also assist tenants with repair requests, in addition to maintenance of common or shared areas within your building. By helping with facility upkeep and contractor management, your property manager will help keep tenants satisfied and happy, while working to attract future occupants. 

Other common maintenance and repair duties include regular inspection of shared building utilities, such as electrical and plumbing, in addition to servicing HVAC systems on a regular basis. In addition, coordination and management of services ranging from cleaning to pest maintenance, snow removal, security, IT, or other city services can be handled by a property management company.

Financial Reporting for Real Estate Investments

As part of their core service offering, a real estate management company usually works to provide you with financials and reporting tied to your property’s profitability. Financials may be delivered to you on a recurring schedule, such as monthly or quarterly, depending on the level of detail provided by the management company.

In addition to updates on your investment’s performance, your property management company may also assist you with general administrative operations tied to your property. Typical responsibilities may include:

  • Rent collection
  • Mortgage payments
  • Tax payments
  • Dues collection
  • Insurance payments

Aside from financial record keeping, a real estate management company might also offer services that contribute to the short- and long-term planning for your investment or investment portfolio of properties. Common services in this arena include marketing and cost budgeting.

Real Estate Management Company Tenant Services

A good property management company also manages tenants effectively. Most often, this includes finding suitable tenants, per your requirements, as well as working to retain optimal tenants. In the event of an unsuitable tenant, your property management company will also be in charge of following the proper eviction protocols.

This suite of tenant-specific services also typically includes running credit and criminal background checks to determine eligibility and trustworthiness of prospective tenants.  Lease agreements, rent changes, accordance with local laws, as well as ongoing communications with tenants are also part of the property manager’s responsibilities in support of tenants and the property.

Marketing and Promoting

Marketing is an essential element of acquiring new tenants. Part of marketing involves traditional advertising efforts, such as placing ads in print and online publications and communicating with realtors and other real estate professionals. However, marketing goes beyond placing a want ad and waiting for the calls to come in. Property management responsibilities related to marketing include:

  • Finding a professional real estate photographer to create captivating images of your property
  • Creating 3D tours, drone-captured aerial video, and/or walkthrough videos to give prospective tenants a better feel for the property
  • Organizing, advertising, and conducting open houses

Letting individuals know about the opportunity that your property represents is an essential function of property management.

Administrative Operations and Logistics

Tenants rarely consider administrative prowess a priority when considering property manager skills. However, it’s important that managers deal with daily tasks in an efficient manner and making sure that physical items get to where they need to be when they need to be. In addition to serving as a single point of contact for both the property owner and the tenant, the administrative role of a property manager includes the proper completion and storage of all leasing paperwork. Administrative property manager duties also involve collecting and recording all funds owned to the property owner, as well as processing applications for new tenants.

Other important administrative duties involve reducing the risk faced by the property owner. In the course of performing their duties, property managers should apply applicable federal and state statutes and ensure that contractors and similar third parties carry appropriate insurance coverage. They must also remain informed about any changing laws that could impact tenant relations.

Risk Management

In one way or another, all commercial and residential property manager duties tie into risk management. This many include ensuring that no discrimination takes place during the tenant application process, maintaining lists of approved vendors who may be called upon for routine matters or during emergencies, and compiling accurate tax forms in a timely manner. Indeed, maintaining proper accounting helps defray the risk of a tax audit and may mitigate potential court actions from tenants. Some property management firms even go so far as to provide liability insurance that covers the property owner.

Property Security and Monitoring

A final duty of property managers involves safeguarding the property so that tenants can have the quiet enjoyment that their leases entail. The exact nature of the security employed will depend on the specific type of building and its intended uses. For apartment complexes, property managers may only need to offer basic security such as deadbolts, smoke and carbon monoxide detectors, signage as to all emergency exits, and perhaps on-site security personnel should the area require it. Other types of complexes in highly trafficked, downtown areas may require an entirely different sort of security, including 24/7 monitoring, regular patrols, fully integrated alarm systems, and high-tech biometric access control systems. 

While property managers do not necessarily provide security personnel to safeguard a property, if they are already on site or owners indicate that they would like them hired, it is part of a property manager’s job description to manage them. The same holds true for the installation of security systems and similar upgrades. These expenses may or may not be recaptured by rents and/or fees, but certain integrated security systems can increase efficiencies, defraying any cost of installation.

Save Time & Money with a Real Estate Management Company

When you hire a company to help you manage your residential or commercial property you get to work with a knowledgeable team of industry experts in support of your investment. In addition, working with a property manager can grant you peace of mind in knowing that your tenants will receive quick responses and you won’t personally be responsible for general maintenance and repair inquiries.

If you need a property manager for your property, look no further than GNP Realty Partners. In addition to our senior staff boasting more than 250 years of combined real estate experience, we are an Accredited Management Organization® (AMO®), a designation conferred by the Institute of Real Estate Management (IREM). Fewer than 550 firms have received this elite designation. More than that, though, your gain is our goal, and we will always seek to manage your property as though it were our own.