Welcome to the Topic “Types of property management”
Property management is an outside contractor’s day-to-day oversight of residential, commercial, or industrial properties. Generally, property managers take responsibility for the standard repairs and ongoing maintenance, security, and upkeep of properties. They usually work for owners of investment properties such as apartment and condo complexes, private homes, shopping centers, and industrial parks.
Read More: Property Management: 10 Things to Know
Their central role is to manage routine tasks delegated to them by owners and uphold the value of the properties they handle while generating income.
There are three types of property management:
- residential
- commercial
- industrial
Residential property management
A residential property manager operates an income-producing residential property on behalf of the owner. Properties commonly referred to as residential include single-family homes and single-family homes, condominiums, townhouses, and apartments.
As part of the services provided by Philadelphia Property Management Service, our Residential Property Manager takes care of all steps of the vacancy marketing and leasing process and the regular day-to-day duties of keeping the property in good condition.
From analyzing the area, determining rental rates, and showing the property to potential tenants, to qualifying their applications and negotiating lease terms and conditions, Philadelphia Property Management Company’s residential property manager takes care of all the necessary steps to lease a building.
Furthermore: Property Management: Definition and Responsibilities
Unlike commercial properties, which tend to have longer leases, turnover in residential properties is high, with most leases generally lasting between 6-12 months.1 Therefore, a large part of our residential property management is marketing, showing, and letting space.
Our professional property manager will also coordinate all building maintenance needs, track all administrative and financial information, and maintain current building insurance, payroll, taxes, mortgages, and budgeting.
Philadelphia property management’s residential property managers respond to tenant requests, issues, and problems.
Communication is crucial for residential managers, and good managers maintain regular contact with the property owner; whether through updates or in a less formal way, our property manager will be sure to keep our clients primed abo the status of their investment.
Residential property management is instrumental when the property owner lives far away from their investment. Indeed, whether it’s a matter of convenience or a wise business investment, property managers are an exceptional way to ensure that an income-producing property earns maximum returns at the lowest cost. Residential rental property management is beneficial when the owner lives far away from their investment property.
Here are some of the foremost property manager duties performed by a Philadelphia property management company:
- Looking for Tenants: Property managers are responsible for making sure rental properties have tenants. This could include creating advertisements and advertising the property on offline and online platforms.
- Tenant Screening: Screening includes checking criminal history, employment, and credit ratings. This helps choose tenants who will pay rent on time and cause fewer problems.
- Dealing with Leases: The property manager sets the lease terms and ensures that they are written in support of the owner. However, the lease should also be drawn under local landlord and tenant laws.
- Dealing with repairs and maintenance: The property manager must keep the rental property livable and secure. Maintenance includes leak checks, smoothing, trash removal, landscaping, and snow removal.
- Staff Supervision: Property managers are responsible for hiring and supervising additional staff, such as cleaners and security staff.
- Budget Management: This includes setting budgets for emergencies and everyday things that the rental property and tenants require.
- Record Keeping: A residential property manager should keep proper records of signed leases, income and expenses, maintenance requirements, repair and maintenance costs, insurance costs, rent collection records, and a list of all inspections.
- Eviction Resolution: If the tenant violates the terms of the lease and fails to pay the rent, the property manager will be responsible for initiating eviction proceedings.
- Tax handling: Property managers are usually responsible for filing taxes on behalf of property owners. This requires knowledge of the tax laws of that region or state.
This property manager takes care of residential properties where the tenant might choose to live long-term. Here are some examples of properties these professionals can manage:
- Family houses
- Vacation rentals
- Multi-generational houses
- Townhouses
- Condominium
- Apartments
- Manufactured houses
- REO properties
Commercial real estate management
A commercial property manager takes care of non-residential spaces such as offices, retail spaces, warehouses, shopping centers, and industrial buildings. Like residential property management, commercial property management involves the tasks and responsibilities of running an income-producing property.
As part of the services provided by Philadelphia Property Management Service, our commercial property management includes the ability to prioritize and perform a wide range of tasks.
For example, advertising, marketing, and leasing procedures are part of the business manager’s job; as commercial leases are commonly more prolonged than other properties, with in-built renewals (i.e., a five-year lease with the option of extension) and escalation1 leases, both the marketing and lease negotiation processes are longer and more complex than for other types of property management.
However, commercial property managers have fewer hands-on tasks than other managers once a space is leased, as many commercial space tenants – such as offices, retail units, and industrial sites – often handle their general maintenance and, in some cases, design and fit out the interior of the space so, to suit their business.
Philadelphia Property Management Company commercial property managers keep meticulous administrative and financial records and update all applicable maintenance, taxes, mortgages, and insurance. They ensure rent collection and respond to tenants’ needs and problems.
Our managers also provide routine reports (i.e., occupancy, rent, and budget) to the property owner and provide regular updates on the investment.
A commercial property manager is a boon to any property owner who does not have the time or experience to sell or manage their commercial property independently. Professional property managers are becoming more preferred for investors who are either too busy or simply not interested in the issues of managing a property.
As a commercial property manager, Philadelphia Property Management Company will coordinate the maintenance and repair of commercial properties. We will also manage communication with tenants and the accounting needs of your client. The goal is to ensure that our client (property owner) receives the best possible return on investment.
In addition, the exterior and interior of commercial properties should be in good condition. Unless otherwise specified in the lease, the property’s interior maintenance will be the responsibility of Philadelphia Property Management. This includes repairing the paint on the interior walls and ensuring the cleanliness of the floor and furniture throughout the property. Our objective is to provide tenants with a clean and safe environment for business.
As a commercial property manager, Philadelphia Property Management Company oversees many different types of non-residential properties. Some examples:
- Public accommodations such as hotels
- Retail properties such as shopping malls, restaurants, and gas stations
- Office properties, such as real estate agents or doctors’ offices
- Coworking spaces where professionals rent workspace by the day or hour
Management of industrial property
Most people are aware of residential property management and commercial property management. Understandably, we often ask: “What is industrial property management?” industrial property is often used with commercial property interchangeably. However, this is not the case.
Commercial property is divided into several different groups, one of which is industrial property. The industrial property itself is further divided into several areas. Understanding these areas and their unique qualities goes a long way toward knowing how to manage each as an industrial property manager properly.
Below are the differences in industrial property management
- Light Assembly: This is a simple feature; in most cases, it is pretty easy to reconfigure; primarily used for a combination of office space, storage, and product assembly.
- Flex Warehouse: This space can also be easily transformed; usually clustered into single-story industrial parks; and usually includes a combination of office and factory space.
- Businesses in these properties may include small distribution companies, research laboratories, technology, or telecommunications businesses; pay careful attention to the lease to ensure that tenant improvements do not interfere with long-term flexibility.
- Bulk Warehouse: These are large properties between 40 thousand and 1 million square feet in size; often used for regional product distribution; their focus is on the storage, sorting, and movement of products between destinations; trucks must have easy access to highway entrances and exits.
- Heavy manufacturing (plants/factories): includes most large manufacturers; usually heavily adapted to machinery; major renovation would be required to convert this property to another tenant.
- Mining and Shipping Sites: Some mining and shipping operations can be classified as industrial property.
As we manage industrial real estate, we maintain and inspect real estate. We also serve as a communication intermediary between the landlord and the tenant.
There are also special duties. We will ensure the property complies with building codes and regulations. Our other work includes coordinating real estate tax audits, offering vendor services, and managing employees. Examples of industrial properties include:
- Heavy manufacturing facilities such as car plants and steel mills
- Light manufacturing plants such as food packaging
- Warehouses
- Distribution equipment
As an industrial property manager, engaging a Philadelphia property management company is critical to making maintenance work well and making tenants feel good about themselves. Being proactive and diligent in our work increases the value of the property, which builds our reputation and brings in more clients.
Knowing the government sales regulations, policies, and methods that apply to each is equally important. The property management company in Philadelphia also has people with extensive knowledge of contract provisions who can understand and use contract clauses and government procurement regulations when needed.
A profitable property is well maintained. The appearance and condition of the property have a significant influence on the rental price. Maintenance makes a difference in the category the property will fall into, directly affecting rentability and price. Skilled property managers in Philadelphia understand all the tasks involved in managing industrial properties, which is why owners turn to them.
Bottom Line
Understanding the types of property management would be vital for our different types of clients. Having a good knowledge and understanding of the kind of property management they want will help us provide our clients with the finest and most appropriate service.
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Also Read: Reasons Why Landlords Need a Property Management Company
