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Property what? just like many people. No one or probably a few people knows what is property management. While agents and brokers, on the other hand, are adding to the confusion as some of them engage with property management activities as well. Do you know that one of the most important factors in achieving success in the rental business is property management? What does a property management company do? How do they raise the occupancy rate of your unit? These questions will be answered as we progress.

Property management is the operation, control, maintenance, and overseeing of residential, commercial, and industrial real estate, including apartments, detached houses, condominium units, and shopping centers. It typically involves the managing of property that is owned by another party or entity. The property manager acts on behalf of the owner to preserve the value of the property while continuously generating income. Having said that, property management is the backbone of a rental business that supports every unit owner. They bring tremendous value and support contrary to the belief of most owners. I can hear you say, not all, adds value to unit owners. I agree that’s why I share the important services a good property management company has. For you not only to understand but to engage with a company that understands your position as an owner. Shall we start?

How to identify a good property management company?

They find a good and qualified tenant, not just someone who comes at your doorstep and expresses willingness to rent your property. A good property management company has a good system in tenant screening. What I have noticed is that due to the limitation of understanding and knowledge, many owners agree with agents and brokers to manage their property not knowing that they only do marketing. Furthermore, without proper tenant screening system, they all assume that all prospective tenants are good and qualified. We learn this expensive mistake during our first years in the rental business, I hope you will avoid the perils of non-systemized tenant screening. Ask the property management company what system they use if they can’t answer, chances are either they do not know or they do not have a system in the first place. Be careful! Eviction is costly!

Moving forward, good property management has control over the tenants. They have a set of rules and they clearly explain them with the tenant before they move in. These rules are not to restrict tenants from what they can do but to protect your investment. They have a dedicated property manager whom tenants can call for some concerns relative to the rules and address accordingly. This gesture indicates that they place your property's wellness on top of all.

Lastly, the most taken for granted factor of rental business: repair and maintenance. This is the reason why many have filed personal bankruptcy due to unprecedented costs. With a good property management company, you will be able to avoid shedding a huge amount. They have a scheduled repair and maintenance, some have Bi-annual while others have quarterly maintenance. How do scheduled repair and maintenance help you? Minor issues will be immediately addressed, avoiding greater cost. A good property management company has either skilled in-house personnel or third-party vendors, that does not matter as long as they vouched for the works of the person. And it should be included in the property management fee. Another good point I would like to emphasize is that properly maintained units have typically a greater value than the ones that were not.

Surely, there’s a lot more to discuss than write. Property management is a broad subject. Leasing and Marketing are just a few of its definition. What I can see at this point, many owners are not properly educated and engage with great danger and I suppose they do not realize it yet. The purpose of this writing is to educate. I am happy to share my experience especially the negative ones for you to avoid them. I hope that all owners will prosper and find good property management to handle their rental units.