Tip of the Month - January 2008

Introduction to Professional Property Management

Source: Property Management & Managing Risk
             Robert C. Kyle & Floyd M. Baird, RPA/SMA

A Property Manager is a person who manages real estate on behalf of the Owner for compensation.  A Property Manager’s primary function is three-fold:

    *To achieve the Owner’s objectives

    *To generate income for the Owners
    *To preserve the property’s value

In other words - the Manager attempts to generate the greatest possible net income for the Owner of an investment property’s useful life.  It is a common misconception that a Property Manager need only collect rents, show available space and execute leases.  In reality, the Property Manager’s job is far more demanding.

Property Management, one of the fastest-growing areas of specialization within the real estate industry, is emerging as a managerial science.  Today, Property Managers must have the knowledge, communication skills and technical expertise needed to be dynamic decision-makers.  They may be called on to act as market analysts, advertising executives, salespeople, accountants, diplomats or even maintenance engineers.  Interpersonal skill are needed to deal effectively with Owners, Prospects, Tenants, Employees, outside Contractors and others in the real estate business.

Real property is defined as the earth’s surface extending downward to the center of the earth and upward into space, including all things permanently attached to it naturally or artificially.  Given this comprehensive definition, it follows that real property management can cover a wide spectrum of duties.

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This web page was updated on 01/03/2008.