What Is Property Management? A Guide

According to Pew Research, 36{5ab75762cf707683d7af2475431dd95a23fbc9cf5cb8a45517116f350cf35bde} of the 122.8 million households in the United States are rental properties. If you own rental property, you’ll understand what a lucrative investment it is.

If you’re new to property investment, you may have many questions about the real estate market that need answering before you part with your cash.

One such question might be ‘what is property management?’. If you’re planning on buying an income property, having your rental managed by a specialist company may be an option that should be considered.

To help make informed choices, this guide will talk you through everything you need to know about property management.

Types of Rental Property

Before we delve deeper into what a property management company does, we’ll look at the types of rental homes and the challenges involved.

Firstly, there are short-term lets and long-term rentals. Short-term lets naturally have a higher turnover of renters. This means a potential increase in cleaning and maintenance needs. As a landlord of a short-term rental property, you’ll need to handle all the utilities.

A long-term rental may have a leasing term of at least a year. Often, this type of property is unfurnished and the tenant will manage their own bills. In some cases, tenants may be allowed to decorate the property themselves. In all, there’s less maintenance involved.

While it may seem as though the landlord has to do less here, they will still need to:

  • Screen tenants
  • Receive rent payments
  • Maintain the property
  • Evict occupants

Another popular rental type is a multi-family property. Here, the complications are that the landlord may have additional responsibility for managing the whole building. This may include:

  • Handling waste disposal
  • Tending to the grounds
  • Maintaining communal amenities
  • Providing security.

In all these property types, property management can help overcome these challenges.

What Is Property Management?

Many landlords want to earn a passive income from their property. Dealing with the day-to-day issues surrounding property ownership can be time-consuming. For this reason, property management exists.

Depending on the type of rental property you own, you may need to hire a specialist such as this company to handle routine maintenance. They’ll also find new tenants and manage the existing occupants.

Property management companies are invaluable to landlords with a large portfolio that may not ordinarily be able to handle the amount of work that goes into running so many rentals.

Do You Need a Property Management Company?

‘What is property management?’ It’s a service that supports landlords, ensuring well-maintained houses and achieving maximum occupancy.

For many landlords, such companies help save time and money. This allows them to focus on other areas of their lives or to continue to expand their rental portfolio.

If you’re a landlord, you may be interested to read our home improvement section for some great tips for the upkeep of your properties.