The business of real estate isn’t about just setting up a property and forgetting all about it at the end! Although there are multiple factors involved (check out our second real estate blog), I believe that management is 70% of the work. Property management is nothing but the act of managing properties on a day-to-day basis. Everything from networking and renovations to even searching for tenants comes under property management.
There are two ways to turn a profit in the real estate world; either by flipping houses or leasing the property to a tenant. The presence of property management prevails in the leasing part of the game!
So, I’m going to highlight the following points points for further understanding:
- Roles of a property manager
- How technology can save your time and effort
Before charging at the point, however, it is crucial for you to know about the roles of a property manager:
Roles of a property manager:
Many property managers work around the clock, carrying an end number of responsibilities on their heads. However, everyone starts small, and every complex duty can be expressed in simple words. Property managers typically juggle networking, maintenance, reports, administration and even marketing.
The bottom line, according to different.com is: “Your property management agency’s responsibility, at the most basic level, is to prioritize your best interest when making decisions for your house or apartment.”
Networking will grow your career:
Forums and associations can propel the amount of professionals you meet in the real estate market. And let me tell you, networking is not only key to learning, but also forming partnerships.
Networking doesn’t always have to involve formally communicating with people. Contacting your friends, colleagues and even family members can go a long way! After you’ve gained enough experience, you can take it to the next level by speaking to facility managers and contractors. Building a vast network of contractors is crucial in property management, as you need to maintain and customise according to the number of properties you own. Remember, you can’t just keep calling new contractors every time. You have to build long term connections with contractors that are trustworthy, do the work and are affordable at the same time.
Reminetwork.com sheds light on the same, by saying that:
“The most successful property and facility managers realize they can’t possibly know it all. They either have a deep knowledge of a particular area or a broad base of general knowledge. Either way, they have to rely on experts or their network to quickly and easily find out about products, services, technology, techniques and tools.
Networking isn’t just about socializing or trying to find the next job. It is a way for property and facility managers to interface and surround themselves with resources that, at some point, will solve a problem, find resources or provide advice about an issue.”
Let’s assume that networking religiously has given you the amount of contractors you need. In this situation, sitting back and relaxing is the last thing you want to do. As mentioned in our second blog, you have to make changes to the property, based on the likes of your tenants and the general public.
Additionally, you should understand which factors add value to your house. Painting, carpets, windows, and tiling work are a few such examples. Don’t make too many random changes, expecting your house to go up in value. Another point to note is that you should try to be as minimalistic as possible. Use sober colors if you don’t want to go all grey, and keep as few decorations as possible!
Pay attention to the roofs as well. In some areas, bees are fond of making nests and giving trouble to tenants. Problems like these require special attention and a unique group of workers to solve. And let me tell you, there are hundreds of problems like these, depending from region to region. This is exactly why you should command your workers to perform a thorough check on each of your properties.
According to managecasa.com, there are three maintenance strategies you can use:
- reactive maintenance (wait for issues and failure to happen and respond to emergencies)
- preventive maintenance (perform inspections in regular intervals to record condition)
- predictive maintenance (using sensors and inspections to establish when maintenance actually needed)
How technology can save your time and effort:
Although it seems irrelevant, technology does play a huge role in property management. From collecting rent to maintaining records and data, softwares do everything!
”Technology advancements are enabling more efficient building operations, resident expectations are evolving, and leasing and marketing teams are being forced to keep up, and that’s just for starters. We believe there’s tremendous value in being on the leading edge of technology investment and deployment, and our partnership with Nine Four allows us to be on the forefront.”
says Kurt Ramirez, Nine Four Ventures general partner on Forbes.
Property managers should have basic marketing knowledge:
If you are both the landlord and property manager, you should at least have enough knowledge to build a miniature brand. You may be managing fifteen properties, but you can’t prove how those properties stand out from the competition, unless you know a thing or two about marketing.
Companies like Nike and Adidas charge higher prices for their products because of their well-known brands. You don’t have to build that big of a brand exactly; having a small brand also helps. It gives you some recognition and leverage, which may provide you with better luck at negotiating with the tenants.
Pen.do highlights another advantage of building a brand, by telling you to:
“Build up a wait list of qualified tenants who can’t wait to move in. Creating your brand not only helps attract tenants, it can help future tenants do your marketing for you. When a brand is memorable, recognizable and defined, it allows others to easily share your story. Think about how you rave about your favourite restaurant, always returning to order those incredible fish tacos and bringing new friends along. Your tenants can do the same for you, if you make it easy for them to communicate what defines you and your listings”
Conclusion: With the help of professionals, you can build partnerships and increase your knowledge. Kick start your property management career today by following using the knowledge you just acquired!
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For more knowledge about property management, I recommend ‘The ABCs of Property Management: What You Need to Know to Maximize Your Money Now’.
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