Property management companies contract with homeowner associations to maintain the buildings and grounds of the condominium or housing area. The actual areas to be managed will determine the responsibilities of the property managers.
Many communities have both a homeowners association (HOA) and property management companies managing the aspects of the community that affect all owners. A homeowners association, typically made up of volunteer home owners, is formed first. The residents elect board members who are willing to assume the responsibility for the association. Once the board is formed, they interview representatives from property management companies and hire the company that will best support the HOA in meeting the needs of the community.
Community bylaws and property management are essential for many residential properties; including single family homes, condominiums and apartment complexes. The consistent care provided through general management, conflict resolution and maintenance ensures that the value of individual units as well as the likability of the neighborhoods and complexes is not compromised. There are different groups or individuals who might be involved in the management of residential property.
While renting property is a great source of income it does come with its challenges. Property management companies are hired to handle these challenges along with other responsibilities such as hiring vendors to handle services around the property.
Challenges faced by property management companies
Whether for an apartment high rise or a condo/housing community, property management companies strive to provide the very best services for residents. The services handled by the property manager vary from community to community but they are always paid for by the home owner’s association (HOA) dues and are executed by vendors. Property management companies seek out vendors using very specific requirements.
Real estate is one of the best-paying investments. It offers several advantages including:
- property appreciates in value over time along with rental income
- it can be a good source of passive income because daily or hands-on property management is not consistently required
- overhead expenses are low compared to returns
- housing is always in demand regardless of the state of the economy
- it is an investment that can be inherited by beneficiaries who can keep earning income
Landlords want to retain the best tenants. Property management companies spend thousands of dollars recruiting the right tenants for properties by placing generalized advertising in newspapers, websites, and magazines. The trouble is that this type of advertising can attract the wrong type of tenants and attracting the right kind of tenant is the first step to retaining tenants in a satisfactory rental relationship.
Home Owners Associations (HOA) have many responsibilities. These responsibilities include day- to- day operations, community safety, property management, budgeting, and correspondence. When property management companies are hired, the HOA stress is reduced tremendously. The responsibilities of overseeing multiple areas of property management are handled by appropriate and qualified property management employees with the right credentials and experience.
Property Management Companies Responsibilities
Maintaining a large property is not an easy task. Whether it is a condo building, gated residential community, or vacation rental property; a home owners association (HOA) is in charge of maintaining the property and keeping it looking beautiful to sustain property value. Home owners pay HOA fees while living or owning the property and one of the major fee components is for building and landscape maintenance. Of course, the cost of maintenance can vary dramatically from one service provider to another and the need to keep prices low is important. The home owners association, along with the help of property management companies, create a budget for needed services and a contingency fund while keeping in mind reasonable monthly dues. In order to keep monthly dues down and to help the association save money through well priced maintenance services, associations often hire property management companies. The best property management companies utilize vendor analysis and multiple client discounts to provide maintenance services at the best quality and price to their clients.
Using the Internet to carry out residential property management functions such as marketing your rental property can be a sensible course of action. Because of its wide reach and time-saving capabilities, property management functions which formerly required manual tracking and implementation can now be accurately and quickly captured and executed online using the internet. This in turn allows the property manager additional time to focus on marketing the rental property, which is the life – blood of the business.