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The On-Site Property Manager is the owner's partner that assists in maximizing the return on investment (ROI) of the property through efficient performance or the Property Manager could be referred to as the right-hand of the owner managing the property via the top four functional areas of property management responsibility: tenant occupancy, facility management, budgetary & administration, and marketing & finance.
Tenant Occupancy: This is very important to an apartment manager and its owners. To have a property without tenants actually means no profits for the owner and the apartment manager. Understanding the needs of the tenants is important for this function. Getting them to move in is only the beginning. The property manager must then respond to their requests, monitor their activities as regards the lease requirements, collect rent in a timely manner, and continually assess the tenants' satisfaction as regards the property's amenities versus those of competing rental properties in the area. The unwelcome task of eviction for violations or non-payment is part of this function also.(James Kimmons, 2009)
Facility Management is also physical management of the structures and outdoor areas. Landscaping, electrical, plumbing, roof, walls, appliances, and much more are all part of the physical property. The property manager must maintain relationships with contractors and repair companies, budget capital expenditures, and monitor the quality of all repairs and maintenance. This function ties in with the financial piece, as some improvements will require significant capital expenditures and budgeting for them. It ties in with tenant and occupancy management because it is important to tenant retention to have well-maintained properties.
Another of the Property Manager's caps is to ensure the property owner's investment building is maintained properly. It also will ensure the tenant's home is a place to be proud. It ensures that profits are not going down the drain. The property facilitator ensures the property is well maintained year round and that it is within the latest in heating, air conditioning equipment, well-landscaped properties, and to ensure the tenant feels treated with respect and dignity, meaning it is their home and the tenant will be proud to come home to it. (James Kimmons 2009)
Budgetary and Administration management is the files and records part of the property management function. Federal, state and local governments all have some jurisdiction over real estate property management activities. Certain reporting requirements must be met for all of them. Meticulous records for accounting and taxes are a must. For reasons of liability, all activities and tenant interaction must be recorded and maintained for specified periods. Though also related to financial functions, there are very rigid requirements in most states for the handling of funds paid by renters for disbursement to owners This office depends on the size property in question but still scaled is in-effect. (James Kimmons, 2009)
Marketing and Finance is the office that runs the promotions and creates the ideas to increase tenancy and initiates the energy to increase investors awareness in the property. The more money in the coffers, the more money to invest in other properties and the money for the owners (Langendoen, Gary March, 1980) Real estate property management involves understanding of operating expenses and budgeting. From this information, appropriate rental rates are set, balanced by the current market and what it will support in the way of rents. A firm knowledge of the area and competitive rental properties is required. The property manager may recommend marketing programs, special promotions and other advertising strategies to the owner in order to maximize occupancy and rental rates. Regular financial reporting to the owners is required. Understanding financial statements, profit and loss, income taxes and budgeting are all very important for the property manager.
The Property Manager, depending on the size of the property, management skills, customer service skills, communication skills and finance acumen, may oversee all of these areas within the property being managed. A Property Manager may come to the table with educational degrees, certifications and/or work experience. (Lowry, Albert J, 1980, July)
To businesses and investors, properly managed real estate is a source of income and profits; to homeowners, well-managed property is a way to preserve and enhance resale values and increase comfort. Property, real estate, and community association managers maintain and increase the value of real estate investments by handling the logistics of running a property. (Kimmons, James 2009)
Property and real estate managers oversee the performance of income-producing commercial or residential properties and ensure that real estate investments achieve their expected revenues. Lowry, Albert J, 1980, July) When owners of apartments, office buildings, or retail or industrial properties lack the time or expertise needed for the day-to-day management of their real estate investments or homeowner associations, they often hire a property or real estate manager, The manager is employed either directly by the owner or indirectly through a contract with a property management firm.
Generally, property and real estate managers handle the financial operations of the property, ensuring that rent is collected and that mortgages, taxes, insurance premiums, payroll, and maintenance bills are paid on time. Some property managers, usually senior-level property managers, supervise the preparation of financial statements and periodically report to the owners on the status of the property, occupancy rates, expiration dates of leases, and other matters.
Often, property managers negotiate contracts for janitorial, security, grounds-keeping, trash removal, and other services. When contracts are awarded competitively, managers solicit bids from several contractors and advise the owners on which bid to accept. They monitor the performance of contractors, and investigate and resolve complaints from residents and tenants when services are not properly provided.
Managers also purchase supplies and equipment for the property, and make arrangements with specialists for repairs that cannot be handled by regular property maintenance staff. In addition to fulfilling these duties, property managers must understand and comply with relevant legislation, such as the Americans with Disabilities Act, the Federal Fair Housing Amendment Act, and local fair housing laws. They must ensure that their renting and advertising practices are not discriminatory, and that the property itself complies with all of the local, State, and Federal regulations and building codes.
On-site property managers are responsible for the day-to-day operations of a single property, such as an office building, a shopping center, a community association, or an apartment complex. To ensure that the property is safe and properly maintained, On-site managers routinely inspect the grounds, facilities, and equipment to determine whether repairs or maintenance are needed. In handling requests for repairs or trying to resolve complaints, they meet not only with current residents, but also with prospective residents or tenants to show vacant apartments or office space (Yorke, Marianne May, 1984)
On-site managers also are responsible for enforcing the terms of rental or lease agreements, such as rent collection, parking and pet restrictions, and termination-of-lease procedures. Other important duties of On-site managers include keeping accurate, up-to-date records of income and expenditures from property operations and submitting regular expense reports to the senior-level property manager or owners.
Education and training. Most employers prefer to hire college graduates for property management positions. In fact, employers increasingly are hiring inexperienced college graduates with a bachelorââ‚¬â„¢s or masterââ‚¬â„¢s degree in business administration, accounting, finance, real estate, or public administration for these positions. Those with degrees in the liberal arts also may qualify, especially if they have relevant coursework. Many people entering jobs such as assistant property manager have on-site management experience.
License. Managers of public housing subsidized by the Federal Government are required to be certified, but many property, real estate, and community association managers who work with all types of property choose to earn a professional designation voluntarily, because it represents formal recognition of their achievements and affords status in the occupation. Real estate managers who buy or sell property are required to be licensed by the State in which they practice. In a few States, property association managers must be licensed. (Bureau of Labor Statistics, Dec 2009)
Median annual earnings of salaried property, real estate, and community association managers were $43,070 in May 2006. The middle 50 percent earned between $28,700 and $64,200 a year. The lowest 10 percent earned less than $20,140, and the highest 10 percent earned more than $95,170 a year. Many resident apartment managers and on-site association managers receive the use of an apartment as part of their compensation package. Managers often are reimbursed for the use of their personal vehicles, and managers employed in land development often receive a small percentage of ownership in the projects that they develop (Bureau of Labor Statistics, Dec 2009).
Armed with the appropriate tools, experience and education, the On-Site Property Manager will ensure a handsome investment return for the Owner(s) and well-groomed home for the Tenant. The property will be a great asset to the community and an opportunity to build upon with additional investments for the Owner and Shareholders. The Property Manager will take great pride in his/her position for it has immediate feedback and a great return and a modest but secure income.