It’s safe to say that property management is dramatically different from what it was 10 years ago. Property managers and management companies have significantly more responsibilities to the client than just collecting rent and paying expenses.
Today, those responsibilities include:
- arranging insurance
- collecting and designing bids for renovation
- coordinating maintenance services
- developing marketing plans
- ensuring compliance with federal and state government regulations
- hiring, managing, and motivating staff
- improving landscaping
- overseeing property security
- providing tax information
- reporting expenses and income
In order to accomplish these many responsibilities, property management firms need to be aware of technological developments, evaluate and respond to conditions in an ever-changing market as well as world events, and find better ways to manage properties. They also have to maintain their relationships with numerous clients who are at the core of their business operations. Basically, property management is all about adaptation, advanced technology, and attracting good tenants.
Adapting to a Changing Industry
Over the past several years, the industry has been impacted by a number of external factors, some of which have included a depressed housing industry and real estate market as well as a stagnant economy. We’ve seen accounting and taxation issues, environmental concerns, government legislation, insurance requirements, licensing requirements, and regulations for lenders become increasingly more complex. As a result, many property management companies have begun specializing.
Furthermore, larger real estate concerns and real investment funds have created a more consolidated marketplace. The primary result has been an increased use of the branding process wherein companies have developed unique, management-based services that benefits all types of rental properties. Consequently, developing and maintaining one’s brand identity has become an essential component of many property management companies marketing strategy.
Advances in Technology
Today’s property manager is able to perform their jobs more effectively and efficiently thanks to certain advances in industry-specific technology. Naturally, computerization is at the core of better communication along with data collection and storage. Many of the more successful property management companies today are using different media and terminal servers to connect with clients, suppliers, tenants, and vendors. In the past 10 to 15 years, we have also seen a broad variety of property management software being introduced into the industry marketplace as well. They help to streamline the management of multiple properties and helps the real estate owners stay updated on all issues.
Attracting Tenants and Retaining Them
Despite the many changes in the industry that companies have had to adapt to and all the advancements in technology, attracting better quality tenants and retaining them continues to be the primary focus of the property management industry. But the most important aspect of all is still providing a superior level of service to both the client and the tenant alike. Although boils down to common sense, these basics remain stable and unchanged throughout the industry.