You’ve heard the term “property management”. You’ve seen their signs on apartment buildings. But still, you may not know what property management companies actually do. That’s why we’ve compiled a list of the top eleven things any residential property management company should be taking care of for their clients and tenants:
1) Financial and Accounting Reports: Owners want to see financial reports, which include the accounting and expenses for a specific time period. Typically, management companies issue financial reports and “owner draws” – the owners’ profits - to their clients on a monthly basis. Throughout the month, various expenses may arise, such as a payment to a plumbing company who fixed a tenant’s sink or for a painter who painted a vacant unit. Each expense should be clearly itemized for the property owner to see on a regular basis. It is the duty of the property management team to oversee and optimize their clients’ financial productivity.
2) An integral component of a property management firm is to eliminate the burdens and complications that inevitably arise when owning an apartment building. Therefore, the property management team’s mission is to act as a liaison between not only the owners and tenants, but also between neighboring tenants as well. For example, one tenant may inform the management of a neighbor, who throws loud parties at night, or causes various other nuisances to the apartment residents. It is the management team’s responsibility to intervene and resolve matters as efficiently and effectively as possible. Generally, these issues can be solved through civil discussion, and compromise. However, if there is a tenant who refuses to cooperate, further measures must be taken.
3) Apartment Maintenance: Tenants call the management team to notify them of damages that have arisen, and any repairs that may be needed. Understandably, property owners may not want to answer calls from tenants who are requesting repairs, and that is why a competent property management team will have a staff which is accustomed to answering these calls on a regular basis. Nothing is built forever and things inevitably break; that’s why the top tier property management companies have a professional, formidable and knowledgeable maintenance team.
4) Hire Vendors for Repairs: When looking for the right person to handle the maintenance job, managers must assess the specific needs and delegate work appropriately. Management companies must assess if the repair necessitates a handyman, a licensed contractor, a specialized electrician, an industrial plumber, or various other laborers to handle the specific issue. Vendors submit bids, or estimates of cost, to the management team, and the property management company uses their discretion and judgment to hire accordingly. It is important to hire reputable vendors, who have experience and references available for their work. Hiring an incompetent vendor will inevitably cause tremendous cost to the property owners. Therefore, it is important for the management team to assess multiple vendors and choose wisely, in order to minimize costs and simultaneously maintain an optimal standard of service.
5) Optimize Vacancies: When a tenant moves out of a unit, the owner wants a new tenant to move in as soon as possible. Therefore, immediately after the tenant moves out, the management team will make any and all repairs to the unit, as well as the surrounding and common areas of the building, in order to beautify and optimize the vacancy for the new tenants.
6) Marketing: In today’s market, the most popular means of marketing and advertising apartments is generally online listings. Popular websites such as www.craigslist.com or www.postlets.com are used regularly, especially in large cities such as Los Angeles. There are still other modes of advertising, such as placing visually-gripping signs for people who are driving around, scouting the neighborhood for apartments.
7) Tenant Screening: Once the apartment is shown, people who are interested in renting the apartment fill out a form which allows the management team to understand and become knowledgeable of who the prospective tenant is. Factors which are examined in the tenant screening process include: The applicant’s credit score, criminal background, income and employment history, and prior residences.
8) Negotiate and Sign Leases: Once there is an interested and qualified party who wants to move into the apartment, the management company provides a lease. A lease is a legally binding agreement between the property owner and tenant, which precisely details the agreement and expectations of both parties.
9) Periodic Inspections: It is imperative that your management company conducts regular property inspections. During a property inspection, a trained member of the management company goes to the property with a checklist, which includes various elements of the building that must be maintained. When repairs are necessary, the inspector makes sure to document all specifications, and ensures that a reputable vendor is contracted to make the improvements.
10) Post Notices: Notices are issued to inform tenants of important matters or urgencies. Sometimes, tenants need to be informed of an upcoming building inspection or a scheduled two hour “water shut-off” period. Depending on the region of the property, owners and managers must adhere to the various city, county, state, and federal laws and regulations. Failure to comply with legalities may cause further legal repercussions, which is why it is imperative to have a management company that is knowledgeable and familiar with real estate law.
11) 24 Hour Maintenance Phone Line: Because various issues may arise after normal business hours, it is important to have a member of the maintenance team responsible for the calls that come throughout the 24 hours of a day. A dedicated maintenance team will answer calls at three in the morning, and, in the event of an emergency, will go to the property make repairs.
Visit www.MCMProp.com for additional information regarding Los Angeles property management services.
