Real Estate Tips |5 min read

Property Management: How Does It Really Work?

Owning income-generating real estate is one of the most common investment types in America. Unlike other types, there is nothing quite like knowing that a part of the land and the housing on it is really yours. Although there is some satisfaction in it, owning property often comes with a daily grind that many aren’t interested in taking on. That is when property management comes into play. But how does property management work, and why do so many people turn to the professionals for their property?

As one of the premier Boston property management companies, we understand what it takes to maintain property in the Boston area and beyond. And it can be a lot. Let’s explore what property management actually is and why it can be so beneficial for landlords.

Table of Contents

What Is Property Management?

First, let’s describe exactly what property management is on a basic level. Property management is the handling and administration of real estate by a third party, whether it be residential, commercial, or industrial. It involves tenant management, basic maintenance of the property, rent collection, compliance of local, state, and federal regulations, and even marketing of the property.

Broadly, property management could be overseen by the owner or by a professional management company (such as BMG). Hiring professionals has a lot of benefits, as we will cover. But before we go further, it would be helpful to go into more detail about the work property managers do on a daily basis to understand what the job entails.

How Does Property Management Work – What They Do

So how does property management work on a day-to-day basis? It is valuable to go over the job description that a typical property manager does so that you know what an owner would be undertaking if there wasn’t a third party property manager involved.

Tenant Management

The everyday tenant management of a property involves a lot, particularly the more individual units that are being managed. It involves such things as:

  • How does property management work? The image shows two people sitting at a desk, one holding a pen and the other with hands folded. A laptop, calculator, and small house model are on the table, suggesting a discussion related to real estate or financial matters.Screening of Tenants – This is one of the most important parts of managing rental property, so knowing all about it is vital. Screening potential renters through background checks, rental history, and credit reports is part of being a property manager, and it also comes with some sticking points and pitfalls. So being knowledgeable is important.
  • Managing Lease Agreements – This means drafting lease agreements so that the terms are clear, as well as legally sound. And then, of course, enforcing them.
  • Collecting Rent – The collection of rent payments is all part of the job. But it isn’t always cut and dry. It means making sure they are received on time and following up on any late or missing payments.
  • Tenant Communication – Property management involves being the primary point of contact for tenants, addressing their concerns, and providing updates on property-related matters.
  • Conflict Resolution – This means getting involved with and resolving any disputes between tenants or between tenants and the property owner.
  • Move-In and Move-Out Processes – Property managers handle the logistics of tenant move-ins and move-outs, including inspections, key exchanges, and ensuring the property is ready for new tenants.
  • Record Keeping – All of the above goes along with keeping accurate records of the tenant process.

Marketing

Depending on the situation, property management often involves the process of finding new tenants. That is, marketing. If there are a large number of units, this could be an ongoing or regular task, since there may be a fairly regular need to fill vacancies. While there are a lot of websites that can help advertise the property and hopefully help, at times finding tenants and worrying about filling vacancies can become stressful.

Maintenance

Property management involves making sure all the maintenance for the house or units are taken care of in a timely manner. This of course may not mean a property manager is actually fixing the refrigerator or the HVAC system (they often rely on contractors for that), but it does mean the property manager is in charge of making sure it is done, as well as managing maintenance requests as they come in.

Compliance

A property manager is in charge of making sure the house and/or buildings are up to code and compliant with all local, state, and federal regulations. Like general record keeping, this is incredibly important. It can sometimes be time consuming and confusing, so learning the ins and outs of compliance-related matters can be a crucial part of property management.

DIY Property Management vs. Hiring a Professional

The image shows a smiling person holding a key with a house-shaped keychain, suggesting the transfer or renting of property. The background features a blurred house, indicating a real estate transaction.Being your own DIY property manager may seem like a valid option for you. If you’re actually interested in how to get into property management as a vocation, jumping into it seems like a reasonable thing to do. If you own the property and think of it as an investment, managing the property yourself brings some benefits, such as cost savings and the ability to put your own personal touch on how the property is managed.

But there are a lot of benefits to hiring a professional property management company. What do property management companies do? The short answer is, a lot. Professionals like the ones we have at BMG come with the expertise to care for your property so that you don’t have the hassles and worries that come with managing it on your own. The benefits include:

  • Time Savings – Property management companies handle day-to-day tasks that can bog you down and become a burden.
  • Expertise in Tenant Issues – Professional management companies have experience and knowledge in handling tenant issues that come up, along with legal and regulation requirements, as well as complicated tenant screening processes.
  • Expertise in Maintenance – The professionals have a network of trusted contractors and can manage maintenance requests efficiently and quickly.

Choosing the Right Property Management Company

Property management involves a lot. And so for many, even thinking of doing it themselves is not something they remotely want to think about. That is where a professional property management company in Boston is a logical step for so many people. Why not look to us!

Bay Property Management Group handles the lease, coordinates maintenance, and generally manages most of the everyday tasks of a rental property so you have less to worry about. If you are looking for a stress-free way to get the most out of your investment property, contact us today.

 

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