What Is Property Management?

Property management is the direct supervision of residential, non-residential, or commercial real estate by an independent third-party property manager. In general, property management takes on responsibility for all day-to-day maintenance, safety, and upkeep of real estate owned by the client. Property managers are typically the individuals who close the door to your apartment, home, or other property. Additionally, property management companies hire caretakers for maintenance projects and repairs, such as gardeners and painters. Property management can also oversee financial investments and incoming capital for residential, non-residential, and commercial properties.

In contrast to the consumer-oriented focus of property management, real estate managers deal with property owned by large businesses or chain organizations, where there is more of a need for coordination among tenants, owners, and management teams. In real estate, managers watch for developments that could negatively affect tenant retention or income levels. While some property owners want to leave their business in the hands of others, most prefer to have an experienced professional overseeing day-to-day operations.

A property management company or a property manager is responsible for maintaining and managing a property owner’s rental income. They are responsible for collecting rents, collecting security deposits, conducting background checks on tenants, preparing deposits and paychecks, collecting late and current rent payments from tenants, and maintaining records of property rental income and expenditures. For property owners who do not wish to employ an outside company to manage their rental properties, property management companies can assist with day-to-day operations. These companies can assist in marketing the property, ensuring tenants continue to be satisfied with their rental units and increasing rental income.