Here is the transcript of this short traing video on explaining what property management is through 4 perspectives, with a PDF document of these slides available here at Issuu:
In this short training video we're going to explain what property management actually is and what’s involved with it. This will help clarify this sometimes confusing role within property to help you know what’s really needed to manage your property best.
The Cambridge dictionary defines property management as “the management of land and buildings as a business, including keeping buildings in good condition and renting property”. It’s basically looking after properties and all the day to day jobs like repairs and collecting rent from tenants.
The important factor though is what the end goal of this is, so if you own a property it might be to make sure your tenants pay good rent to provide a good return on your property investment, or as a tenant to make sure you use the building just how you want to at the lowest possible costs. Management of property is then the overall control and almost administration of lots of detail that will enable you to reach these goals.
In terms of what is property management, then there’s 4 main areas to consider, or rather ‘perspectives’ as covered in the Property Management Guide book we have on the whole subject, more details on that in a moment.
1. The Property Perspective
...is looking at the physical property itself and management of property itself, whether that’s basic repairs, or making sure it’s properly secured and there are enough car parking spaces. This is the nuts and bolts of looking after the bricks and mortar building.
2. The People Perspective
...is involving everyone who needs to be with the property, a classic miss understanding being when you first get a new tenant, as often you need a separate letting agent to first find and check the tenant with property managers then looking after them, although this can fall within property management if you wanted. As well as the usual landlord and tenant, there are other advisors like surveyors, solicitors, and accountants, with property management often tieing all these areas together.
3. The Payment Perspective
...looks at what money is needed, with landlords generally wanting rents to pay mortgages, and tenants a lower rent and running costs. There’s other hidden costs like service charges, insurance premiums, and utilities, and you need to make sure all these monies are correctly held in separate bank accounts with correct sets of accounts and taxes paid, even separate deposits and sinking funds.
4. The Paperwork Perspective
...tends to be all the compliance and documentation side of managing properties, both the leases and legal side of things, as well as compliance areas like fire regulations and health and safety. They not only need correctly carrying out, but correctly logging all property management information.
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