Five basic things to know about property management
Property Management has been defined as the process of managing property that is available for lease by maintaining and handling all the day-to-day activities that are centered around the piece of real estate. By process, it means that it involves the advertising of property, seeking out of tenants, maintaining the property, collection of rental payment, and accounting and reporting. From this definition, we can find at least five things of what property management is all about.
To attract interest of tenants and to keep property being rented out, there is so much need to effectively advertise the availability of your property. It is very important to know the methods and channels to use. This could be in a Website, Facebook or some other social media sites. But whatever the tools being used, it is imperative for the property to be strategically advertised.
2. TENANT SCREENING AND RESERVATION
Having a tenant is one thing and having a tenant that treats the property as his own is another. It is not enough to just rent out the property, it must be rented out with respect and care. Tenant screening is an operative way of ensuring that the property takes in nothing but top-notch guests. This involves background checking, verifying employment, requesting of government identification cards, or even asking or calling the potential tenant’s current or previous landlords.
3. MAINTENANCE OF PROPERTY
To keep your current tenants and entice more potential tenants, the property must keep up with the maintenance. Maintaining the property is a key issue. Landlords are obliged by law to keep the property suitable for living, especially with regards to health and safety standards. This may include inspection of furnaces and other utilities, reparation of damages in the building, and preparation of a 24-hour emergency hotline.
4. RENTAL COLLECTION
Keeping track of tenants and collecting their payment on time is a significant factor in raising your income. There are different methods of collecting rentals and not all of which works for every landlord. Lessors must determine which of these works best for their specific situation. But it is necessary that this method be a streamlined and meticulous process.
5. ACCOUNTING AND REPORTING
To know how well your property is earning or performing, it is a peremptory call to determine the strength and weaknesses of your real estate business. Financial reports help identify and analyze assets, liabilities, return of investments and also by making educated estimates. This gives a whole and clear picture of the performance of your business.