The functions of a property management company

The relationship between a property owner and a property management company is one of mutual interest that aims at maximizing returns from the property therein. This relationship entrusts the property manager rights and power to exercise authority over the property but within the scope that is specified in their contract. In law, the relationship could be viewed as an agency relationship with the property owner being the principal and the management company playing the role of the agent. The functions of the property manager are mainly towards the tenants, the property, the owner and in regards to rent. They are elucidated in as follows;

The rent

Property managers are designated the mandate of setting the rent that tenants will pay. The said rent will be based on an assessment of the market and the going rates of the competitors in the geographical location of the property. Also, it is the responsibility of a property manager to collect rent after the lapse of a time stipulated in the tenancy agreement. Over time the managers may also raise the rent as they may seem appropriate.

The tenants

As towards the tenant, the property manager plays various roles. The functions are administrative and managerial in nature, and they comprise finding tenants, screening tenants, managing complaints and eviction of untenable tenants. Finding tenants involves the process of marketing the property by putting up posts physically and online. Screening tenants is a function that requires the manager to find the best tenants who fit the description that is required. This could entail running a background check on potential tenants to uncover information like the existence of criminal records. Further, the property manager is within his rights to issue eviction notices based on breach of the lease agreement by the tenants.

The property

The property is an asset that should be preserved and managed efficiently in order to maintain value in the market for a prolonged period of time. Therefore the property managers ought to undertake necessary maintenance and repair measures like unclogging drainages, fixing taps, collecting rubbish and lawn mowing. Routine inspections will ensure that the property is attractive enough to retain the current tenants and attract potential tenants.

The owner

The property manager’s most significant role is towards his employer who is also the property owner. The manager should always keep the owner informed of the state of affairs. The information could be in regards to accounts or the legal issues that involve the property. Transparency is the basis of the relationship between the owner and the property manager.