Top 10 Reasons Why Landlords Should Use Online Property Management Software

Introduction:

Online property management systems are becoming popular due to various reasons including easy of use, managing any type of real estate transactions including lease, daily operation or real time information on centralized locations. These systems being web based are easily accessible from all over the world and real time information is gathered.

The system manages all information through your web site. Individual residents can submit applications, make requests, pay online and many more other information can be shared. The property owner gets real time information about their property.

Property software solution providers have made the systems easy so that in a smallest time all the information can be gathered, analyzed and report can be generated at convenience.

Top 10 reasons for landlords to use online Property Management Systems:

1. Property Information: Organization of property information or creating property portfolios is one of the greatest tasks. The online property management system makes this easy. The images of property can be uploaded in the system for multiple owners and the system is capable to handle the information on any size of property.

2. Vacancy Information: All the information regarding leasing of the property can be easily managed and the prospective tenants can access more details about the properties, find out the terms and conditions, payment conditions and if satisfied may apply online.

3. Manage Leases: The property owner can access the property information online at any time, hence may manage the recording of leased properties. Customized information can be shared with other team members.

4. Receive rent online: You can manage and ensure timely receipts from your tenants. The online property managements systems are designed in such a way that after a particular date they will automatically assess a late fee as penalty. You may even generate rent receipts through the online system.

5. Managing Maintenance: To achieve highest benefits you are required to keep proper maintenance records of your properties. The online property management systems have provisions for maintenance and team members responsible for carrying out maintenance job can access the the information efficiently.

6. Service requests from tenants: Tenants may also apply online for maintenance requests and the team members can carry out the job.

7. Lease agreements: All lease agreements; lease duration and rent information can be centralized. On completion of the tenure the system will automatically inform the details of the concern property and tenant to you.

8. Tracking of expenses: Tracking property maintenance expenses and income expenses online and real time is easy. All the information can be retrieved quickly.

9. Specific property reports: A specific property or property portfolio can be tracked easily and all history of the particular portfolio can be retrieved.

10. Cooperation among team members: Various team members responsible for different task can communicate with each other, with property owner and tenants. Through the system the specific task to the team members can be assigned and managed.

Anatomy of a Financial Statement - Property Management

Robert Kiyosaki likes real estate investing is because real estate touches each part of his financial statement. Starting with his best-selling book Rich Dad Poor Dad and continued in many of his subsequent books, Robert explains how real estate gives cash flow to his income statement and on the expense side of the income statement he's able to deduct the property's depreciation as an expense.

When seen from the balance sheet, he's able to gain appreciation on the asset side and the leverage provided by the bank rounds out the liability side of the balance sheet.

Through a property management company you can also access the four parts of the financial statement. Here's how:

Balance Sheet: Asset Column

Every property producing monthly rent is an asset. It is possible to sell the rights to manage the property to another property manager for a lump sum of money.

Balance Sheet: Liability Column

Robert uses his banker's money aka leverage in order to purchase a large property with only a small percentage as a down payment. When the property goes up in value he is able to keep the entire appreciation amount without having to share it with the bank. He can use leverage and still get the benefit of 100% of the appreciation.

In the property management business, leverage is achieved through controlling the income of a property. A property that is producing $500/month in rent gives a property manager $50 in income. If the manager feels that $500 is too low for the area, then her or she can increase the rents by 10% to $550 and the management company's income will go up 10% accordingly. How many companies can increase their income by 10% without a causing uproar among its clients?

Income Statement: Income Column

As a property management company, you take your 10% management fee directly off the top after the rents have been collected. Here again, if the manager feels that rents are too low, the manager simply raises the rent and increases the income to both the manager and the property owner. It's win-win!

Income Statement: Expense Column

While Robert Kiyosaki is able to depreciate the building as an expense, a property management company cannot take this tax advantage because a property manager doesn't own the building-the owner does, however, a manager is able to make money off the expenses incurred by the owner of the property.

Let's say that a tenant calls to say that the plumbing underneath the sink is leaking. The manager sends out his repairman to fix the leak. The repairman sends a bill to the property management company for the $12.00 plumbing parts plus $30.00 for his hourly rate.

The property manager now marks up the bill by lets say $10.00 and now charges the property owner $12.00 for the parts and $40.00 for the repair time. The $10.00 is for the manager's orchestration of taking the call from the tenant and sending out the repairman.

Now multiply this scenario by the management of 200 properties and you'll find that expense mark-up is a significant source of a manager's income.

As you can see real estate allows an investor to utilize all four parts of a financial statement. As a property manager, you can piggyback on the owner's shoulders and receive some of the same benefits of cash flow and leverage and you can actually profit from the property in ways an investor cannot i.e. expense mark-up.

And here's the best part -and the prime example of a property management's ultimate leverage: the manager isn't responsible to the bank for making the payments on the mortgage. The owner is responsible! The property manager is able to make money off the property without being personally responsible to the bank for the asset that creates all the money in the first place.

What a concept!

Ryan Windley coauthored The Property Management Start-Up Guide - How to Start a Property Management Business and Still Keep Your Life in order to introduce entrepreneurs to property management as a viable business.

Top 9 Questions to Ask a Property Management Company

Now you have an investment property the next step is to find someone to take over its management. Do your research and list questions you want to ask when interviewing prospective property management companies. Short list a few companies that interest you.

Phone them to ask questions then, if you are still interested; make an appointment to visit in person. Visiting in person gives you an idea of how they conduct their business and you can meet the people who will represent your interests. Here are the top five questions to ask when you interview a property manager.

1. Does the Company have a Dedicated Management Arm?

You want to know whether the property management company offers a complete service or if it is just a side line for a real estate office. Who and how will your property be managed. How many staff are in the office? Who will deal with you and your tenants if staff leave or are sick?

2. Does the Company Owner/Director get Involved in the Business?

Most property management companies are divided in two - selling real estate and managing real estate. Usually the company director is involved with the sales side as it is the high profit area of the business and a property manager takes care of leasing. If the company director is involved with the property management arm of the business, you may find they take it more seriously than others.

3. How well do they know the Rental Business?

Check with the property manager how long they have personally been dealing with property management. Just because you are talking to a well known real estate company does not mean their staff have a lot of experience. It also does not mean they provide top quality customer service.

Some property managers start out working in a real estate office as the office person and work their way up. Some move into property management and the rest into sales. Other property managers have specifically chosen property management as their career.

4. How long has the Property Manager worked for the Company?

You want a property manager that is stable in their employment, and who takes looking after your interests seriously. There is a lot of stress involved in property management, with a high turnover of staff. In six months time, you want to be talking to the same person to build a business relationship that understands your needs and the property. This is a good reason to look for a property manager dedicated to it as a career.

5. What Area does the Company Service?

You are right to consider companies that have expert local knowledge but, if you intend buying more properties in the future, how far does their expertize reach?

You do have a choice - either hire a property management company in each geographic area or find one that covers a wider area to take on all your properties.

6. How do they Conduct Property Inspections?

This is really an important one - the last thing you want is for a property manager to just hand out your keys to prospective tenants. Too much can go wrong. You want to know that the property manager will give good customer service and personally take prospective tenants to inspect your property. Or, they may hold open houses at specific times. This gives them a chance to get to know a future tenant better.

7. How many Properties does the Company Manage?

You want to know how many properties the property manager manages personally. Some may have 200 or more. If they do, I wonder how they can give you and your tenants top customer service. Others may have only up to 150 but charge more for their service. This may be a better option to get peace of mind and, ultimately, make a good return on your investment property.

8. Does the Company's Staff Work Six Days a Week?

You want a property management company that can show your properties when it is convenient for the tenant. After all, you want tenants that can pay the rent so that means that most will be at work during normal business hours; unless it is a commercial property for rent. In the world of internet advertising, enquiries come in 24 hours a day. This comes down to their availability and ability to deal with maintenance issues as well.

9. Does the Property Manager Check New Tenant's Credentials?

It is important to ask how the property management company checks out the credentials of short listed prospects. You need to reassure yourself they check people's credit and rental history, and their past and present employment.

All prospective tenants must be screened carefully. Does your property manager have adequate access to information for this purpose? Do they provide you with a written report that backs up their claims when handing over short listed prospective tenants?

You now have plenty of information to help you seek out the very best property manager for your growing property portfolio. Enjoy your investment.

Five Considerations of Hiring Property Managers

Five Considerations of Hiring Property Managers

1. Management Fee
The property owner needs to understand the purpose of the management fee (typically 10%). The percentage management fee pays for the property manager's time. The 10% allows someone else to help shoulder the burden of owning the property. The owner is paying for someone else to field 2:00 am calls. It is important to remember that the property manager cannot take all of the responsibility and burden off the owner. In the end, it is the owner's property and the owner's responsibility.

2. Interview
When hiring any professional, an interview will be conducted to hire the correct candidate and then the professional is left to alone to do their job. Working with a property manager is no different. During the interview process ask good questions; require forthright answers, hire the right candidate, and then get out of their way. If an owner is a high micromanager then they should hire a certain type property manager (see Property Manager categories below).

3. Personality fit
The owner's personality has to fit the property manager's systems and procedures. Sometimes owners will have difficulty with a property managers systems and procedures. If a property management company sets office hours between 9-5 Monday through Friday and owner wants an update on their property @ 6:00pm on a Friday evening they will have to wait until 9:00 am Monday. This may drive some owners crazy who want to be very involved in the day-to-day management. If this is the case they probably should hire a manager who will be more responsive to the owner's needs.

4. Communication
Communication is a two-way street. It is not only the property manager's responsibility to communicate effectively. Owners should understand they have to lead the property manager in how they expect the manager to manage the property.

Here's an example: My wife is a director of marketing for a company. She has to be the leader in guiding and directing the advertising agency as to what she wants for the project. She cannot expect the advertising agency to try to guess what she wants in the project.

If your property manager is slow in returning your phone calls explain to them the level of communication you expect. In return, ask them how much communication they expect from you.

Many property managers would rather only communicate with you on as needed basis. Much more than this level of communication from the owner is overkill.

5. Property Manager Categories
While Property managers fall into three categories, the size of the property management company is neither better nor worse than the others. Choosing the size of property manager has more to do with the level of owner pampering and paperwork provided rather than a property manager being good or bad.

Small 1-50 units
Property managers in the small category are usually unlicensed with no training in property management. These managers will have more time for the property owner. This type of property manager is usually not much more than a handyman who will show and rent apartments. If a property owner wants to be hands on and needs to be updated on every specific action of the property this is the manager they should hire.

Pros:
These property managers have the time to cuddle and coddle the owner. They will provide the owner with receipts for repairs and nothing else in documentation.

Cons:
These managers will have no systems in place to and will not be able to negotiate vendor discounts. No 1099s and no accounting documents prepared for your accountant.

Medium 50-150 units

Pros:
These managers have more of a professional approach with the use of some systems. They have the purchase power to negotiate some vendor discounts.

Cons:
The paperwork may be enough for the owner to understand the numbers, but may not be enough information to submit to an accountant or to the IRS.

Large 150+

Pros:
Large companies have invested a lot of money in their systems procedures. They will have an in-house maintenance staff. Their accounting reports can be submitted to an accountant or the IRS.

Cons:
No time with the owner. Communication is very professional, but impersonal, done mostly through email and voicemail. Large management companies offer very little owner pampering and handholding. The downside: even owners who have been in real estate for many years still need some positive reinforcement once in a while.

Ryan Windley coauthored The Property Management Start-Up Guide - How to Start a Property Management Business and Still Keep Your Life in order to introduce entrepreneurs to property management as a viable business.

Property Management - Commercial Management

Property management is an ever growing need as more and more people are now opting out of buying homes due to aspects such as the increase in mortgage prices. Renting is now becoming the more popular way of gaining property. It is because of the fact that more of us are now renting property that that need for property management has grown so much. It should be noted that property management requires time, intelligence and good attention to detail as well as management qualifications.

Property management is the job of looking after the properties that people rent out. This is the same for residential and commercial property. Whatever type of property you have as long as you are renting it; you will be able to get the help of property a management team.

Property management companies have the responsibility to deal with multiple responsibilities and aspects of the management and ownership of real estate. The duties of a property management company is to negotiate and stabilise a relationship between the landlord and tenant. The duties performed by a property management company are pretty much the same if your property is a residential or commercial but here we are mainly going to be looking at commercial property. Whether your property is an office block, a retail store or a bar/restaurant the duties that a property management team will perform for you are:

o Collecting rent

o Handle your letting

o Asses potential tenants

o Administration services

o Maintenance of the property

Commercial property management is an essential aspect of the property market if you want to increase the appeal or value of your property. It will allow you to get on with your renting business while the management company gets on with the day-to-day running. The extent of the service that is provided by a property management team is as flexible as you want it to be; it can be used as much as you need it to be.

A professional commercial property management service maintains and raises the level of occupancy, which enables a steady income. This is because a property management company keeps your commercial property in good condition in order to bring in business for the landlord. Your commercial property needs good curb appeal. This is achieved through keeping the structure, landscape and parking elements of the property in a clean and welcoming condition.

Your commercial property needs to be kept in good condition in order to attract customers to use your business. You need to ensure that your property is in good condition to attract businesses to set up shop within your property.

If you have invested within the property market then you will want to ensure that you are getting the most from your investment, which is where commercial property management can help you. By keeping a well run and well maintained property you will generate interest within your business and therefore attract more custom.

If you would like more information about what a commercial property management team could do for you get in touch with an expert company today.

When and How to Hire Real Estate Property Managers

I'm aiming this article at those real estate investors who've grown their property portfolio to the point where they're asking themselves the question, "Do I need to hire a property manager or a property management company to take care of my investments?"

Here's my answer: "Yes, definitely, if you're interested in building long-term wealth and a secure future!"

My answer is yes because, as an investor, you should be focused on the big picture--finding new properties to increase profits and appreciation, making current properties more profitable, etc.

You should not be focusing on day-to-day activities. It's a waste of your valuable time and could cost you big profits. You need to delegate daily tasks to a property manager. In military terms, your job is to be the general and set the strategy to win the war while the property manager fights the daily battles with good tactics to help win that war.

Depending on the type of property you own, an on-site property manager will take several daily tasks off your hands. He or she will:

o Negotiate contracts for janitorial, security, grounds-keeping, trash removal, etc.

o Solicit competitive bids from several contractors for repairs, installations, etc., and advise you on which bids to accept.

o Monitor the performance of contractors.

o Handle complaints from residents and tenants.

o Buy supplies and equipment for the property.

o Handle day-to-day operations of a single property.

o Inspect the grounds, facilities, and equipment.

o Show vacant apartments or office space.

o Enforce the terms of rental or lease agreements; e.g., rent collection, parking and pet restrictions, termination-of-lease procedures, etc.

o Maintain accurate, up-to-date records of income and expenditures from property operations.

o Submit regular expense reports to you, etc.

There are also off-site property managers in larger operations. Their job is to:

o Act as a liaison between the onsite manager and you.

o Market vacant space to prospective tenants by various means (e.g., leasing agents, advertising, etc.).

o Establish rental rates in accordance with prevailing market rates in your area.

Once you're really in the big time in terms of holdings, you may require the need of a real estate asset manager to help with more complex business decisions. These individuals focus on long-term financial planning and often:

o Act as your agent and adviser for the property.

o Plan and direct the purchase, development, and disposition of real estate on behalf of you and any investors you have in your group.

As you might expect, the choice of a property manager or property management firm is critical. A good manager/firm will not only maintain your profits but increase them while keeping your properties in great shape. A poor manager/firm can cost you big time. For example, they may neglect maintenance of the exterior, interior and grounds, thus diminishing the property's value instead of increasing it. This can also lead to disgruntled tenants who either leave or barrage you with complaints. Or, a poor manager/firm might lease to unsuitable tenants who leave you in the lurch or battle you in court. The result-money comes out of your bottom line!

Research is the key to getting a competent and professional property manager or firm. The following guidelines will help you choose the best one for your properties:

o Interview several property managers to get a sense not only of their backgrounds but how well they'll work with you and tenants.

o Check references of the interviewees closely.

o In terms of a property management company, ask for a list of their clients and contact those clients for their opinions on the company.

o Ask for proof of licensing. Requirements vary with the state. In general, however, a property manager should have a real estate license, a property manager's license, or both.

o Ask for professional accreditation from the Institute of Real Estate Management (IREM). This is an organization of professionals providing designation in three areas:

CPM-Certified Property Manager

ARM-Accredited Residential Manager

AMO-Accredited Management Organization

o Definitely require proof of insurance! Any reputable property management company will carry insurance for general liability, automobile liability, worker's compensation and professional "errors and omissions" insurance.

o Make sure the property management company has a substantial fidelity bond. This is your protection in the event an employee mishandles or embezzles your money.

o Demand separate accounting. Any firm you choose should have separate accounting for each of its managed properties. Avoid any firm that has a "master trust" account where funds from several clients are all mixed together. This can lead to some pretty "creative" accounting that can cost you money and expensive legal complications.

Key Points:

ü Think strategically and delegate lower-level responsibilities to a property manager/firm so you can concentrate on increasing your long-term wealth.

The Commercial Real Estate Investor Team Member That Makes YOU the Most Money- The Property Manager

The right Property Manager can dramatically boost your profits and is key to your success. The wrong one can make you wish you never bought a property in the first place. Property Management Companies play a BIG part of any commercial real estate investor's business plan.

So, how do you find the right Property Manager and what should a Property Management Company focus on to make YOU the most money?

Rental property can be an extremely profitable investment when managed correctly.

The best management comes from an experienced professional Property Manager. Find the best local Property Manager before you start buying, meet them in person and interview them. Once you make a choice establish good rapport and make sure they have a good reporting system and use industry standard management software. Please don't manage your own properties. You are almost certainly not good at it and Property Management is NOT the best use of your time as the head of your Investment Business.

Experience is one of the defining qualities of a Certified Property Manager. (CPM)

Candidates for the designation CPM must have a minimum of five years of effective full-time decision making activity in real estate management before earning the designation. Ongoing training is also an important piece of the right management balancing act that makes sure your manager keeps up with both the urgent daily tasks AND your long term business plan for the property.

Great Property Managers greatly reduce your risks at the same time they increase your profits.

They keep your tenants happy, focus on increasing rents and decreasing vacancies. They take care of maintenance issues promptly without you needing to get involved in repairs. They stay up to date on the latest changes in Landlord-Tenant and Fair Housing laws so you always operate in compliance with the rules.

Your Property Management Company cost is not an area where you want to shave the budget.

You get what you pay for so make sure your dollars are spent wisely. Look for Property Management companies that contain the following key traits and your profits will grow, while you simultaneously reduce monthly and annual expenses, and maintain or grow your tenant lists.

A great Property Management Company stays focused on three main areas to maximize return on investment.

1. The Investor - by increasing profits

2. Your Customers or Tenants - by providing a positive experience that results in their continued tenancy

3. Other Professional Associates - their support network that insures operating policy and procedure are adhered to.

You can not serve the needs of one of these groups at the expense of another. Ultimately, the right Property Management Company is adept at balancing all divisions and relationships that contribute to successful management and Return On Investment from a property.

Property Management success should be a shared experience within the company.

By this I mean every employee should exhibit a good attitude whether they are new to the business or have years of experience. Every employee in the management company should be willing to grow and learn. Periodic training through coaching or education should be available to maintain and upgrade service delivery. All these efforts transfer to increased customer satisfaction and tenant retention.

The right management company will also be networking with the immediate community.
Chambers of Commerce membership and various community organizations and should be able to provide a minimum of five references to you from properties they manage. They should have a track record and strong management portfolio, and have experience working with multiple investors on a single property. They should be strong communicators and be willing to work with you and your investment strategy. If your management company treats the property like they own it directly, and are spending investors money like it belongs to them they become a valued resource that contributes to both the tenant experience and the investor's bottom line.

Property managers have to understand how to increase returns within an owner's specified time frame, and know how to add value by enhancing income and cutting expenses. They will conduct due diligence for you and provide you with reports as well as know how to take over a property after acquisition. The right property manager is also a financial manager and will understand how to analyze financial statements and utilize yield management technology that provides monthly updated rent rolls, income expense reports as well as annual operating budgets and income forecasts.

Choose a Property Management Company with proven abilities, integrity, reliability, industry knowledge, and management expertise needed to enhance the value of your commercial real estate assets. Investors own property for one reason - as a financial investment. The RIGHT Property Manager is the one team member that can improve your investment by positioning your property to achieve its highest and best use and make you the most money.

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What You Should Know About Property Management of Commercial Properties

Now that you have made an offer to acquire a commercial property and are waiting to close escrow, you may want to start looking for a property manager to professionally manage the property. Your real estate investment advisor should present you with 2 or 3 local companies, each with its own proposal. Your job is to decide which company you will hire. The property manager will be the main point of contact between you, as the landlord, and the tenants. Her main job is to:

1. Receive and collect the rents and other payments from your tenants. This is typically simple until a tenant does not send the rent check. A good property manager will somehow get the tenant to pay the rent while a lousy one will throw a monkey on your back!


2. Hire, pay, and supervise personnel to maintain, repair and operate the property, e.g. trash removal, window cleaning, and landscaping. Otherwise, the property loses its appeal, and customers may not patronize your tenants' businesses. The tenants then may not renew their lease. As a consequence, you may not realize the expected cash flow.


3. Lease any vacant space.


4. Keep an accurate record of income and expenses, and provide you with a monthly report.

A good property manager is critical in keeping your property fully occupied at the highest market rent, the tenants happy and in turn helps you achieve your investment objectives. Before choosing a property management company, you may want to:

1. Interview the company with focus on how the company handles and resolves problems, e.g. late payment.


2. Talk to the person who will manage the property day to day as this may be a different person from the one who signs the property management contract. You want someone with strong interpersonal skills to effectively deal with tenants.

The property managing company normally wants a contract for at least one year. The contract should spell out the duties of the property manager, compensation, and what will require the landlord's approval.

Agent's Compensation: you will have to pay someone to manage and lease the property. You may have one company to manage the property and a different company to lease the property. However, it's best to work with one company that handles both managing and leasing to save time and money.

1. Management fee: the fee varies between 3-6% of the base monthly rent for a retail center, depending on the amount of work needed to manage the property. For example, it takes much less time to manage a $2M retail center with just a single tenant than a $2M retail strip with 12 tenants. So, for the center with 12 tenants, you may have to pay a higher percentage to motivate the property manager. You should negotiate the fee as a percentage of the base rent instead of the gross rent. Base rent does not include NNN charges. Ideally, you want a lease in which the tenants pay for their share of property management fee.


2. Late fee: when a tenant pays late, he is often required by the lease to pay late fee. The property manager is allowed to keep this fee as an incentive to collect the rent.


3. Leasing fee: this fee compensates the property manager to lease any vacant space. In a typical lease contract, the leasing company wants 4-7% of the gross rent over the life of the lease. It also wants the leasing fee to be paid when the new tenant moves in. In addition, the leasing company wants around 2% of gross rent when the lease is renewed. The tenant may also ask for Tenant Improvement (TI) credit, typically between $10-20 per square foot to pay for construction expenses. So if a new tenant with a 10-year lease goes under after one year then you may lose money. As the landlord you should:

• Approve a long term lease (10 years or longer) only when the tenant's financial strength is solid. Otherwise, it may be better to reduce the lease to 3-5 years.


• Make sure the new lease has a provision for some kind of rent escalation, preferably based on Consumer Price Index (CPI), i.e. inflation which is 3-4% a year instead of lower fixed 1-2% annual increase.


• Consider TI request from the tenant as one of the factors to approve a lease. The TI credit depends on whether you need the tenant more or the tenant needs you more.


• Negotiate for a flat rate renewal fee, e.g. $500 instead of paying a percentage of the rent for the life of the lease. The negotiation is easier with one company that handles both leasing and management.


• Negotiate to pay the leasing agent a lower percentage, e.g. 4% when no outside leasing broker is involved.

You can see that it's very important to minimize tenants' turnover rate as it has a direct impact on the cash flow of your commercial property. A good property manager will help you achieve this goal.

Monthly Report: each month the property manager should send you a report on income received, expenses incurred, and property status. You should Review the report to see if the numbers make sense. You should:

1. Request a report showing both rent and CAM fees received.


2. Request a separate bank account for your property and have a monthly bank statement sent to you. Without this, the property manager will deposit and commingle all the rents from all properties that she manages into her company's bank account.

If you instruct the property manager to send you the excess cash flow then you will also get a check.

Landlord's Approval: the management contract should specify the dollar limit for exceptional maintenance expense above which would require your approval. This amount varies from landlord to landlord as well as the type of property. However, it's typically somewhere between $500 to $2,000 dollars.

Communication with property manager: in the first few months, you and the new property manager should communicate often to make sure things go smoothly. You should give instructions in writing, e.g. email, to your property manager and keep records of all your correspondence. If the property manager does not do what you instructed, you may refer to your records and minimize disputes.

If you want to work hard for your money, you may want to manage your own property. However, if you want to work smart, your partner should be a good property manager.

David V. Tran is the President and Chief Investment Advisor at Transmercial (formerly eFunding, Inc.), a commercial real estate & loan brokerage company in San Jose, CA. His website is http://www.transmercial.com He may be contacted at (408) 288-5500. Transmercial does business in all 50 states. He is the #1 US commercial real estate expert author. David currently offers 3 FREE real estate investment seminars:

1. How to invest in commercial real estate for early retirement income.


2. How to maximize cash flow with 1031 tax-deferred exchange.


3. TIC: Fractional ownership in high-value commercial properties.

Facts about Property Management

Property management is the concern of many of us, taking into account the fact that our society is in continuous movement and change. Property management information is available not only in specialized magazines and research papers, but also online, on websites that have as their major concern study, market research, covering issues regarding marketing and leasing, land use and development, maintenance and other important subjects. There are also property management companies that offer their consultancy and assistance during an investment and management period.

The advantage of reading property management magazines is that they present both the academic and professional point of view. Besides, some of them are available online, too. Another advantage of property management magazines is that some of them are focused either on the national or international perspective regarding important issues. Property management magazines are a valuable resource for people who want to be informed about changes of this domain.

There are various online resource centers offering news and information about property management. You can find there information about property and real estate, tax deductions for landlords, frequently asked tenants concerning the legal or practical issues of tenants and landlords. Property management resource centers also offer useful tips for landlords and valuable details about usual issues. Tenant injuries is a subject discussed by online property management resource centers, pointing out insurance facts and landlord liability. There are also legal updates to previous information offered on the website so that the landlords would be well informed about recent changes.

Landlords may be amazed by the fact that there is property management software available. This property management software is of great help for landlords with a few rental units and for management of big properties. In this way, you can have your rental properties organized, benefiting from the smart Windows based software. This popular property management software reminds you of expiring leases, late rent, providing extensive reports in various categories. Property management is made easier and more accessible with simple software that provides necessary and valuable information in due time.

There are also National Property Management Associations focused on personal property and fixed-asset professionals. These associations can offer training, educational opportunities as well as certification programs, all of them concerning the subject property management.

You can find information and assistance concerning agriculture, industry property management. There are property management divisions concerned with some particular branches: real property, personal property and physical property. Property management can become easier with support, implementation and monitoring of procedures, regulations and policies for the management of real and personal property.

Property management companies have to deal with multiple responsibilities and aspects of management of ownership of real estate. These companies offer to negotiate and stabilize the relationships between landlord and tenant. They also manage income and activities involving expenses, repair, maintenance and other aspects of the construction and development.

Property management is much more than a matter of responsibility, awareness and information. It requires time, intelligence and witness, great attention to details, but also management qualifications.

Property related issues explained clearly at [http://propertymeet.info] Up to date property business and management factors that are affecting your monetary return.

Eleven Key Attributes of a Good Property Manager

Property Management is a career profession. The industry allows for employment growth, continual learning experiences, and the opportunity to work with diverse people and income groups. The Property Manager can work either directly for an owner of real estate properties, or for a property management company, contracted by an owner or legal entity to care for the real estate over a specific period of time.

The Property manager has a fiduciary relationship with the management company and property owner. A fiduciary relationship is one that is based on a mutual trust and complete confidence in one another.

The Property Manager is provided an owner's real estate portfolio to manage to its "highest and best use" in exchange for an employment contract or salary. Real estate assignments for the property manager includes apartment buildings, condominiums, hotels, storage facilities, shopping centers, office buildings, government subsidized properties, rooming houses, abandoned buildings and plots of vacant land, to name a few.

I have managed almost all of the above types of properties for over twenty years. I have managed public and private housing, for non-profit organizations, for the federal government, and for private developers and real estate investors. I also owned my own property management company for eight years. I now teach, speak, and write about property management standards and techniques. Here are some crucial skills, which I know from first hand experience, must be accepted as required attributes and learned skills in order to be a good property manager.

1. Must Know and Stay Current on Local Ordinances and State Laws

Managers are required to perform their work according to the laws of the land. The government (city, state, and federal) dictates how real estate is to be managed, from requiring a real estate license (depending on the state), to the use of the real estate (such as rent control laws). From proper trash removal to how and where we must keep security deposits, the manager has to keep abreast of the many legal requirements of managing real estate. If a mistake is made or a task is forgotten, it could cost the owner his or her property, and/or a management company's reputation, loss of the account, or even the loss of real estate licenses.

2. Must Be Highly Ethical and Honest

Property Managers work on the Honor Code when they handle other people's money. By collecting rent, security deposits, laundry machine money et al, the property manager holds a fiduciary relationship with the property owner and/or management company. The owner entrusts the property with thousands of dollars each month, plus the value of the real estate itself. The manager is hired to perform at his or her highest level of integrity. On a daily basis, the property manager's good judgment and sense of what is right and wrong is called into play.

3. Must be Detail Oriented and Organized

Managers collect the rent daily, and must ensure that each rent is paid and posted to the tenants' account as received. Financial records detailing each and every rent transaction are kept, either by rent cards, or on the computer. Lease expirations and renewals, rent increase letters, and rent invoices must be mailed on time. lines for court appearances must be kept, and clients must receive their written monthly report of operations. A skilled property manager is able to multi-task, keep site files organized, and prioritize repairs and assignments.

4. Must Have Good Communication Skills

Managers must be able to communicate with people from all walks of life, cultures, ethnicities, and personalities. Managers must be able to articulate their cases in front of judges, talk to the owner, negotiate with vendors as well as speak appropriately with tenants, who are often frustrated, upset, or angry. A good manager must be able to stay calm, and communicate in a professional manner. Familiarity speaking in other languages is always a plus.

5. Must have Good Computer Skills

Computer competency is a technical skill, like driving, typing, etc. The use of email, mail merge, and faxing through the computer is at the heart of property management today. This is especially true if the property is on one part of the city or state, and the home office is a distance away from the site. If a manager does not have a solid command of the computer and its basic programs, such as Microsoft Word and the spreadsheet Excel, you may be hard pressed to find an administrative position in this field.

6. Should Like Working with the Public

If everyone paid the rent on time by the fifth day of each month, the manager would not have rent collection work to do. If a property never had problems, such as toilet overflows, lost keys, or defective smoke detectors, a property manager would have little to do. Therefore, it is important that a manager enjoy dealing with people with problems. A manager should at least like helping tenants with dignity, and in a responsible manager. If you do not like being interrupted several times a day with a dilemma to solve, this type of job may not be for you.

7. Must Be Patient and Have a Sense of Humor

There is some pressure involved working with the public. There are days when nothing seems to go right, and if you happen to have a headache that day, it could be a long 9 to 5. A calm personality or a good sense of humor will take you a long way in property management. If you tend to be high-strung, anxious, or become angry or impatient while working with tight deadlines or with people with problems, you may want to re-consider taking on this profession.

8. Must Like to Read and Conduct Research

There are many types of leases, agreements, forms, and other legal documents that must be signed between tenants, the manager, government agencies, the site attorney, and/or the owner. Real estate and governmental regulations change; the manager must be willing to read up on them and stay current. Documentation must be read and checked before submitted to tenants, agencies, the owner, etc. If you do not like to read in order to keep up with the latest trends, legal and industry changes and terminology used, you will not be able to properly do your job.

9. Must Have a Strong Sense of Duty and Commitment

Ensuring that the tenants under your control are treated with respect, have heat and hot water, are not subjected to or committing illegal activities or disruptive behavior of their neighbors, are some of the managers' duties. Tenants depend on the manager's sense of obligation to the property and the families or professionals who live in it. The manager may not always have the funds to do everything all the time, but what can and should be done, such as keeping the building clean, and having a sense of urgency to get work completed in a timely manner.

10. Should be Flexible-Minded

Property Management is a fluid profession, in that it follows economic, governmental, industry, and societal changes that impacts how a property is managed. Managers who still like the "good old days" of mistreating tenants and making rental applicants jump through unnecessary hoops to get an apartment (or the opposite, by not checking anything), will find him or herself out of touch, and maybe out of a job. The ability to accept changes of law, obey fair housing laws, have a positive, or at least a neutral, attitude about people who are different, and above all, to be open-minded, is a key element of a successful manager.

11. Must Be an Excellent Follow-Up Person

A manager can never assume that a repair or rent payment plan will happen on its own. Our mantra is: "Follow Up, Follow Up, Follow Up!" This is one of the most critical skills of a good property manager. The ability to multi-task, keeping several balls in the air without dropping any of them is challenging, and difficult at times. The ability to successfully multi-task is often rewarded both financially and in promotion decisions.