Property Management

Property Management is the practice of someone else managing a property on behalf of its owner. It is often performed by agencies which specialise in this activity. Most commonly, an owner will arrange for third-party management of his property when he does not himself live in it. Often, the owner has purchased the property so he can rent it out to others. However, many property owners are reluctant to get involved in the nitty gritty of the property rental business, such as advertising for tenants, showing them around the property, collecting rent from them each month, negotiating or taking legal action against them if payment is not forthcoming, as well, of course, as arranging for the basic maintenance and repair of the property itself. These are the services typically performed by a property management agent or company. Usually, the property managers take a proportion of the rent as remuneration for the work they do and forward the rest to the property owner.

The laws regarding property rental are often rather intricate and effective property management naturally requires an awareness of them. Some property owners may feel that the complexity is best handled by a specialist firm. In some jurisdictions, but not all, property management agents must be licensed by the government before they are allowed to practice.

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