1) Financial and Accounting Reports – Owners want to view financial reports, which include accounting and expenses for a specific period of time. Management companies typically issue financial reports and “owner withdrawals” (owners’ earnings) for their clients on a monthly basis. Throughout the month, various expenses can come up, such as a payment to a plumbing company that fixed a tenant’s sink or a painter who painted an empty unit. Each expense should be clearly itemized for the property owner to see on a regular basis. It is the duty of the property management team to monitor and optimize the financial productivity of its clients.
2) An integral component of a property management business is eliminating the burdens and complications that inevitably come with owning an apartment building. Therefore, the mission of the property management team is to act as a liaison not only between landlords and tenants, but also between neighboring tenants. For example, a tenant may inform the management of a neighbor, who organizes noisy parties at night or causes other disturbances to the residents of the apartment. It is the responsibility of the management team to intervene and resolve matters as efficiently and effectively as possible. These issues can usually be resolved through civil discussion and compromise. However, if there is a tenant who refuses to cooperate, additional measures must be taken.
3) Apartment maintenance: tenants call the management team to notify them of any damages that have occurred and any repairs that may be necessary. Landlords are understandably not willing to respond to calls from tenants requesting repairs, and that is why a competent property management team will have staff that are used to answering these calls on a regular basis. Nothing is built forever and things inevitably break; that is why world-class property management companies have a professional, formidable and knowledgeable maintenance team.
4) Hire suppliers for repairs: When looking for the right person to do maintenance work, managers must assess specific needs and delegate the work appropriately. Management companies must assess whether the repair requires a handyman, a licensed contractor, a skilled electrician, an industrial plumber, or various other workers to handle the specific problem. Vendors submit bids or cost estimates to the management team, and the property management company uses its discretion and judgment to contract accordingly. It is important to hire reputable providers, who have experience and references available for your work. Hiring an incompetent supplier will inevitably cause tremendous cost to homeowners. Therefore, it is important for the management team to evaluate multiple vendors and choose wisely, to minimize costs while maintaining an optimal service standard.
5) Optimize Vacancies: When a tenant moves out of a unit, the landlord wants a new tenant to move in as soon as possible. Therefore, immediately after the tenant moves in, the management team will make each and every repair to the unit, as well as to the surrounding and common areas of the building, in order to beautify and optimize the vacancy for new tenants.
6) Marketing: In today’s market, the most popular means of apartment marketing and advertising are generally online listings. Popular websites like http://www.craigslist.com or http://www.postlets.com are used regularly, especially in big cities like Los Angeles. There are still other modes of advertising, such as placing visually appealing signs for people who drive, scouting the neighborhood for apartments.
7) Tenant Screening: Once the apartment is shown, people interested in renting the apartment fill out a form that allows the management team to understand and know who the potential tenant is. Factors examined in the tenant selection process include: applicant’s credit score, criminal history, income and employment history, and previous residences.
8) Negotiate and Sign Leases: Once there is a qualified and interested party who wants to move into the apartment, the management company grants a lease. A lease is a legally binding agreement between the landlord and the tenant, which accurately spells out the agreement and the expectations of both parties.
9) Regular Inspections – It is imperative that your management company conduct regular inspections of the property. During a property inspection, a trained member of the management company goes to the property with a checklist, which includes various building elements that need to be maintained. When repairs are necessary, the inspector makes sure to document all the specifications and ensures that a reputable supplier is contracted to make the improvements.
10) Post Notices: Notices are issued to inform tenants of important matters or emergencies. Sometimes tenants need to be informed of an upcoming building inspection or a scheduled two-hour “water outage” period. Depending on the region of the property, owners and managers must adhere to various city, county, state, and federal laws and regulations. Failure to comply with the legalities can generate greater legal repercussions, so it is imperative to have a management company that knows and is familiar with real estate law.
11) 24-hour maintenance phone line: Because various problems can arise after normal business hours, it is important to have a member of the maintenance team responsible for calls that are received 24 hours a day. A dedicated maintenance team will take calls at three in the morning and, in an emergency, will come to the property to make repairs.