If you’re wondering what “property management services” refers to, you’ve come to the right place. We’re well aware that it can be a bit hard to stay updated on every single real-estate term out there (as new ones appear almost on a daily basis). Today, we’ll introduce you to some info on the different types of property management services. Also, we’ll consider the term itself, its basic definition, main traits, and so on. Lastly, you’ll learn how different types of management services can benefit property owners. Stay tuned!
What is property management?
First, let’s consider the phrase we’ll use a lot in the following paragraphs: property management. Here’s something you’d call a basic definition: property management represents the operation, control, and oversight of real estate assets. A top-quality property manager will handle residential, commercial, or industrial properties instead (on behalf) of the owner.
This includes various tasks such as collecting rent, making sure that the property is in good condition (regular maintenance), leasing, tenant relations, and so on. Therefore, property managers serve as the middlemen between owners and tenants. Their main objective is to make sure that the property’s needs are met and that the tenants are satisfied with their living/working arrangements. Needless to say, this kind of output demands somewhat hard-boiled organizational, communications, and financial management traits.
So now that we’ve seen what the term refers to, let’s explore the different types of property management services out there!
What are the different types of property management services?
Without further ado, let’s dig our hands into the subject matter!
#1 Residential property management services
As the names suggest, this type of property management involves professionally handling residential properties (apartments, condos, single-family homes, etc.). Residential property management services usually include a solid amount of tasks that are made to assist the owners in managing their residential real estate assets.
Here’s one example of what residential property managers do: they can help owners with the process of tenant screening. First, they’ll market the property. Then they’ll host property showings and help you select the qualified tenants based on verified application and background checks. Also, they can help you with rent collection, financial and lease management issues, property maintenance tasks, etc. Lastly, they might even help you come up with questions you should ask your partner vendors, like local movers. Here’s a little tip: the first one should be: are you licensed and insured?
#2 Commercial property management services
A commercial property manager overlooks many kinds of non-residential (commercial) real estate properties. We’re talking about (traditional) offices (large or single-unit), coworking spaces, hotels, retail properties, etc. Even hotels count as commercial properties. Commercial property managers will spend most of their time handling commercial tenants who rent properties long-term. Also, though it’s not that typical, they may even handle monthly renters in coworking spaces (and customers in retail spaces).
#3 Special-purpose property management services
This type of service represents handling properties that are made for a specific purpose: hospitals (and other healthcare facilities), schools (and other educational institutions), government buildings, and so on. Special-purpose property management might require a specialized bucket of skills, licenses and expertise. That’s because special-purpose properties usually possess unique features and requirements.
#4 Industrial property management services
A fourth variation on the list of different types of property management services is industrial property management services. Industrial property management refers to the strategic management of all elements related to an industrial property, such as warehouses, manufacturing plants or distribution centers. This can involve many different activities, such as leasing the property and negotiating lease terms, overlooking the maintenance of various utilities, and executing renovations. Efficient management of industrial properties can lead to an increase in their value, decrease costs and prevent potential risks and issues such as non-compliance with zoning laws or failing to meet fire codes.
These services similarly reflect attributes of residential or commercial property management, just on a different scale and clientele.
#5 Short-term rental management
Property management services can also play an important role in short-term rental properties. Unlike longer-term rentals – which typically have leases signed for at least a year – these properties have different tenants coming and going quite often. They are usually located in popular tourist destinations or around college campuses, for instance. One of the biggest challenges with short-term rentals is the high turnover. After each tenant leaves, the unit needs to be “made ready” for the next tenant to enter – which includes thorough cleaning and tidying up, at least, and may also include repairs.
Since all of this needs to be completed quickly to ensure the rental property is ready to be leased again, it’s great to have an experienced property management firm who can handle these tasks ASAP.
Bonus round: What are the benefits of property management services?
Lastly, let’s discuss why one should consider hiring property management services. There are many benefits to hiring property managers. Here we’ve selected a few!
#1 A property manager will help you get high-quality tenants
Needless to say, screening potential tenants and finding the ones that suit your property is an essential strategic element. Many property owners don’t have the time to handle the selection properly. That’s where property managers jump in. They’ll help you get high-quality tenants!
#2 You’ll enjoy on-time rent payments
If you, as a property owner, aren’t able to collect the rent on time, the property might suffer. Many owners don’t have the time to collect each tenant’s monthly rent or have the tools or software in place to do it effectively and efficiently. A professional property manager on the other hand will.
#3 Also, you’ll lower maintenance costs
Here’s the thing: a professional property management company with years of experience has already worked together with a solid number of service providers in your local area. Therefore, they’re already introduced to companies that can be trusted and that offer top-quality service. Besides this, they might possess various discounts and deals with the aforementioned service providers. They likely won’t have any trouble finding experienced pros in your area that can provide the best quality for price.
The Bottom Line
That sums up our overview of the main types of differing property management services out there. Hopefully, you now understand the nuances that separates them.
Ultimately, no matter which type of property management service you need, it’s wise to understand that hiring quality property management service providers is essential to a successful investment.
If you own, or plan to purchase, a real estate investment in the greater Austin, Tx area, reach out to our team of Austin property management professionals today. We provide turn-key residential property management services with a focus on return-on-equity performance.
By: Kayla Gonzales, 1836PM Marketing Manager