What is Real Estate Management?

Real estate investment is a fantastic way to begin if you want to build long-term wealth and financial stability. But as your investments grow, you may find yourself needing some assistance to manage all of those properties. And that is where real estate management comes in handy. 

Being a landlord for one property can prove to be busy. But if you are the proud owner of more than one property, it can be too much at times. Real Estate management allows owners to build passive income while someone else manages the day-to-day landlord business. Here is what that looks like. 

Defining Real Estate Management 

Whether you own commercial or residential properties, real estate managers can help manage the daily operations of the rentals. They deal with the operations, upkeep, renting, buying, and selling properties for you. Here is a list of the significant responsibilities of a property management team. 

1. Receive and process potential renter applications and screening. 
2. Collecting rent and managing fees. They should be aware of the local competitive set and the general operating expenses. 
3. Property maintenance and services. This person should be responsive and personable to maintain good tenant manager relations. 
4. Handle evictions and the paperwork that comes with that. 
5. Maintain records and the budget. They should know your budget and set one accordingly for each project. 
6. Schedule for property improvements when needed. If the roof needs repair, the pool needs resurfacing, or the carpet needs to be replaced, those things will fall to the management. 

The main focus of an excellent real estate management team is to protect your real estate investment. They are there to express your wants and needs for the property while keeping the tenants in the units happy. 

What are the Costs for Real Estate Management? 

The average cost for a property manager varies by property and area. But, on average, the expenses lie between six and twelve percent of the rental income. However, there can be some additional costs associated with property management. 

• There could be a management fee above the percentage. 
• There will be maintenance costs for the properties. 
• The manager may charge a new tenant replacement fee above the standard rate. 
• You may incur a lease renewal fee to cover the signing of the renewal paperwork. 

Ask these questions to determine if you would like to consider property management for your investments. 

Do you have too many properties to manage on your own? 

Is the property somewhere you can often visit, especially in the case of an emergency? 

Can you afford to hire a real estate management team? 

Do you have the time to manage more than one real estate investment? 

Are you willing to give up a little of the control of the properties you are invested in? 

The bottom line is that real estate management can be a valuable addition to your investment portfolio. These individuals or companies are trusted with great responsibility and can be a real help to investors. 

In Summary 

Real Estate Management can be an essential tool in your belt when it comes to property investment and building personal wealth. Those who own several properties will benefit from having a second set of eyes and hands on their investment. This will provide more time for investors to scout out new places and not have to get involved with the day today. 

On the other hand, property management takes a little of the control out of your hands, and it is not a free service. So, it will draw from your income as well. 

If you are considering hiring real estate management, do your homework. Ensure the person you will be working with is personable, easy to work with, is not afraid of a challenge, and seems to enjoy the job they do. Then when you have found that person or team, sit back and relax. They will do all the heavy lifting for you. 

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