Real Property Management, or RPM management as it’s known, is the total hands-on management for properties owned as investments. The properties are rented by and managed by property managers. Property managers are responsible for the upkeep and overall management of a physical building or property. RPM management has two distinct focuses: residential and commercial. Although the position requirements are the same, the daily tasks are different as are the roles.
Residential property management demands a combination of the skills required to assume both commercial and residential responsibilities. The duties typically included accepting applications from potential tenants, the screening of the tenant application, lease negotiation, rent collection, and managing the budget set for the property. The actual responsibilities that are building-related include the resolution of emergency call-outs, scheduling maintenance, property inspection, and renovation projects. Residential RPM management often requires being on-call at all hours of the day and night to respond to emergency call-outs.
On the other hand, commercial property managers often have greater budget responsibilities and a full staff they manage. The core focus in commercial property management is on preventative maintenance, scheduled maintenance, and property renovations. The expected level of service provided by a commercial property manager is typically higher than that demanded of his residential counterparts.
Commercial property can be found at high rise office buildings in city centers, suburban shopping malls, and resort country clubs, which include hotel and villa accommodations. All of these buildings require constant attention to detail to ensure the trouble-free running of the property. The property manager’s biggest enemies are weather, people, and time, all of which have detrimental effects on the property. However, if not for those three elements, there would be less of a need for them.
There is always a more human dimension in residential property management. A good example is tenant selection. People who are typically poor tenants usually target owner-managed properties since it is difficult for them to pass the screening that a professional property manager puts his applicants through. Often, the rents are lower, and the owner is anxious to maintain cash flow. Property managers know the time and difficulty of evicting a bad tenant, so they are much more critical with their selection process. Property managers will follow through on supplied references and check their employment record and credibility. Eviction problems disappear if the bad tenant is not accepted to begin with.
When your rental properties are occupied with quality tenants, they tend to be less troublesome and to pay their rent on time. The property manager can accomplish rent collection and fund’s dispersal quickly and on time. The manager prepares monthly statements showing the income and expenses, while also reporting on any major issues the owner should be aware of.
RPM management is an important part of investing in rental property. As an owner, you want to focus on the returns and not the problems. Real Property Management can help you administrate all aspects of building management.