Property management is an important topic of property investment and it benefits both landlords and tenants.
On top of this, it helps out those working on behalf of landlords too such as letting agents and property managers. It refers to the management of residential, commercial, or industrial properties, ranging from single-family homes to large apartment complexes.
Property managers are responsible for ensuring that properties are maintained, rented, and generating income for their owners. They can handle anything from rent collection to repairs, marketing, and tenant management. In this article, we will explore the different types of property management, what they involve, and how they can benefit property owners.
There are different types of management mainly because there are different types of property with different types of management required. For example, residential property, commercial property and also industrial property should all be managed in a specific way.
There are also property managers who specialise in different sectors of the property industry too so you should differentiate finding talent based on where you’re hiring for too.
Residential property management involves managing properties that are used for residential purposes. This includes single-family homes, flats, apartments, and maisonettes. Residential property managers handle a wide range of responsibilities, including tenant screening, rent collection, maintenance, and repairs. However, they may regularly offset some of this work to a letting agent too.
In general, the issues faced by residential tenants are more to do with the safety and wellbeing of those inside as the management should ensure that a tenant is safe within their home and their right to occupy is being respected.
A part of management, tenants also have unique rights as it is their primary place of residence. For instance, they must have the right to occupy a quiet home.
Commercial property management deals with managing properties used for commercial purposes, such as office buildings, shopping centres, and warehouses so generally deal with businesses.
Commercial property managers are responsible for ensuring that the property is leased, tenants are satisfied, and the property is maintained. There is also a wide range of equipment that must be maintained depending on the type of property. This can get complex, particularly when managing multiple properties, so it becomes far easier to do portfolio property management.
Overall, commercial property management pays attention to a different set of rules and you should also note that this type of management has become less popular as office space is become less popular due to more people working from home as work cultures change post-pandemic.
Industrial property management involves managing industrial properties, such as factories, warehouses, and distribution centres and these types of buildings usually follow the same kind of rules as commercial buildings as there is spoke overlap.
However, it is possible that there are very few people working on large industrial sites because the majority of large industrial sites are automated with machinery and produce a very small amount of jobs.
This means the management style is often different and the profit margins for these types of sites are also higher. Industrial property managers are responsible for ensuring that the property is well-maintained, fully operational, and safe for workers.
Property management software is steering property management in recent years because the legislation and compliance is getting more complicated, market leaders like lofti are required to completely streamline the management process.
Property management software has a range of uses including being able to streamline a landlord or property manager’s daily operations and efficiently manage their properties. Adding to this, a property management software allows you to easily create and manage property listings across various platforms, such as your website, social media, and listing sites.
Tenant management is also a big benefit of software as tenant information can be stored all in one place with ease and you can easily collect rent payments from tenants while having them track maintenance requests and schedule repairs through an app or website.
Some landlords choose to manage their portfolio without the help of a property manager and sometimes without the help of a letting agent too. In this case they are a self managing landlord and this can be referred to as its own type of management.
Some difficulties a landlord may run into is having enough time to deal with all of their maintenance requests themself. Especially in Wales, where a landlord is required to be registered and licensed with Rent Smart Wales in order to manage their rental property. Appointing a managing agent removes the requirement of becoming licensed.
If not licensed, this can have legal consequences as a property that is being rented without complying with Rent Smart Wales is in breach of a the occupation contract and a landlord could lose their rights to evict a tenant as a result.
Written by Donnell Bailey for Seraph
BIO: My job involves creating content focused on the finances. I spend my days conducting thorough research to ensure that the Lofti suite provides the right material online and offline, making it a hassle-free experience for landlords.