The services property management companies provide will vary from business to business, but there are a few general services you should expect regardless of which company you engage. Those include leasing, rent collection and maintenance.
Many investors who choose to partner with a PM company do so for the operational efficiency a professional service can provide in addition to the financial gains it can help them achieve. Although this may feel counterintuitive at first, paying for the work of a property management company will save you money and help your investment grow.
Below we’ll talk about some of the services property management companies provide, but first it’s important to understand the differences between a few other professional services related to real estate development.
What’s the Difference Between an Asset Manager, Property Manager and Leasing Agent?
There are a few property-related roles that often get used interchangeably but are distinctly different. They include asset managers, property managers and leasing agents.
Asset management companies serve in a strategic capacity. Their services involve developing the financing strategy of a real estate investment and branding the given property.
A leasing agent is someone whose job is purely to show properties that are available for rent and to receive applications. They might also process the applications and make approval decisions on them, but once the leasing agent has filled the unit, their job is essentially done.
Lastly, property management companies offer tactical services. This includes things like collecting rent, taking care of maintenance issues, and advertising and leasing the unit. This is more than what a leasing agent does but also different from the role of an asset manager.
While leasing, rent collection and maintenance are the three major categories a property manager handles for you, there are a lot of other things you may not realize a property manager is responsible for.
To see a full list of those items, it’s important to review the property management agreement (or PMA for short). Examples include things like accounting. The property manager will track all the money as it flows between the resident, owner and property manager, as well as for third-party work orders and to other vendors. It’s important that the rent, security deposit and all financial transactions are carefully tracked and accounted for, and your property management company will take care of this for you. You’ll also receive a monthly statement and annual report for your review and tax use.
Evaluating Your Needs
Asset managers, leasing agents and property management companies fulfill different needs for property owners. Your investment goals will dictate which service(s) are best for your needs in the here and now. Before hiring any of them, it’s important to have conversations up front about what they offer so you can clear up any potential confusion about their scope of services.
As you consider your needs, priorities and comfort level handling the various responsibilities that come with property ownership in Columbus, feel free to reach out to us at RL Property Management with questions.
