How to Manage a Property Management Company

Successful property managers must be able to manage basic business affairs as well as rental properties.

If you want to manage a property management company effectively, it is important that you understand both small business management and property management. You must be able to manage employees, finances, profit potential, employee tax accounting, a business budget and paperwork. On top of the general business management requirements, you must manage the needs of your clients' properties.

Instructions

1. Manage a property management business just as you would any other business. The basic management skills include paying taxes on time, keeping accurate corporate records, finding clients and keeping current clients happy.

2. Find new properties to manage. You can do this both by increasing the number of clients that you work with and by increasing the properties that you manage for each client.

3. Consult with your lawyer. There are many legal issues involved with property management. If your property management firm is large enough, you might have a dedicated lawyer working for you. If not, be sure to have a lawyer that you consult with frequently concerning legal matters with regards to real estate and business law. A lawyer's expertise should include making sure all contracts are in order, making sure all federal and state laws are upheld, dealing with problem tenants, dealing with problem landlords and more.

4. Pay your own bills and clients' bills on time. By running a property management business, you not only have to make sure your own bills are paid on time, but you must make sure your clients' bills are also paid in a timely fashion. Depending on the contract you have with your clients, you may have to pay taxes, mortgages, utility bills and insurance, along with other incidentals, such as garbage pickup fees, for your clients on their properties. Even a one time mess up on this can be very damaging for your relationship with your client.

5. Collect rent from tenants. Make sure to collect rent from tenants in an organized fashion on a set schedule. You can set up automatic payments, collect payments directly from tenants or let tenants send rent to you. Whatever the case, make sure to keep on top of it and keep a detailed accounting of your collections.

6. Repair properties in a timely fashion. You must manage tenant complaints and provide repairs in a timely fashion. How long you have to do repairs might depend on the type or repair, the contract or laws in your area. You should develop relationships with handymen of different expertise to get the best rates and best service.

7. Find new tenants quickly. If a property is vacated, you should have a system on hand to quickly find new tenants for the property. Keep up to date with current rental laws. Make sure to find responsible tenants with good credit. Advertise for applications and keep qualified applications on file, even if you have no current openings. Keep up to date with real estate rental pricing trends to make sure you are getting the best rental prices for your properties.

8. Manage property finances. Beyond collecting rent, you must manage the money for your clients. You must give clients their fair share of profit while keeping your share (dependent on the amount you specified in your contract). You must also make sure you have enough money on hand to pay bills and pay for repairs.

9. Make sure all contracts are up to date. Do not forget to renew contracts with your clients or with tenants. Again, go through with a lawyer any problems or disagreements that arise with the signing of new contracts.

10. Keep on top of your properties. Although the exact steps to manage a property management firm varies, the basic idea is to keep an eye on the properties and take care of problems as soon as they arise. Keep your clients (the property owners) happy by taking care of their properties in a responsible and organized manner.

Tips & Warnings

• Keep in touch with the property owners, but make sure not to bother them too much. You don't want your clients to feel like they can be managing the properties themselves with the amount of time they are dealing with you.

References

• All Property Management: Common Questions and Answers