April 12, 2024

The #1 Misconception About Property Management Companies And The Truth

Property Management

In the time of social media, fact checkers are having a battle in identifying and correcting the sums of misinformation that run rampant on the web. No industry or topic is exempt from a tale or two parading as truth. In fact, real estate is one of the most heavily discussed and misconstrued topics on the net.

The National Real Estate Management Group blog is committed to separating fact from fiction about real estate, buying, selling, construction, and the business of property management.

One of the biggest misconceptions of real estate, property management specifically, is that the only role property managers play is collecting the money.

So, could that be where the term ‘rent lady’ comes from?

Maybe. But, a few things there, a property manager isn't restricted to genders and a property manager is layers more than a rent collector. A great property manager is a part of the success fabric of a real estate investment company.

Property Managers Doesn’t Just Collect Money, They Manage Finances

Property managers are hired by property owners who are looking to optimize their assets. One of their major tasks is indeed rent collection. However, there's more to it. They spearhead financial management for onsite operations. This often includes creating the property budget, managing and reporting profits and loss, and a multitude of ranges when it comes to the financial health of the property.

Property Managers Are Risk Mitigators

‘No risk no reward.’ How many times have you heard that phrase in reference to investing? Possibly more than you can count. It's a very true statement. However, there is more to it. Risk is required, but so is risk mitigation. Property managers are key to risk mitigation on site because most risk that threatens a property comes from potential liabilities that are right there on the physical property. Liabilities include insurance claims from ill-kept property concerns such as fire protection management and even legal compliance. It also shows up in terms of required visible signage that promotes safety or acknowledges exemptions according to local, state or federal laws.

Property Managers Are Resident Success Managers

Yes. They are. Property managers are at the center of resident success, management and conflict resolution. As a part of this role it extends beyond executing on things that most residents deem of highest importance such as maintenance and curb appeal. Resident retention is also deeply rooted in communication. Communication is the act of hearing and being heard. So, its highly important as a property manager to understand that when as resident is upset (and when they aren't) to hear the messages they are delivering with open ears and the intent to understand in case there is a call to action for a resolution.

Property Managers Are World Class Marketers Who Are Invested In Making It Happen

Property managers are responsible for marketing vacant units, attracting potential tenants, and reducing vacancy rates. They use various marketing strategies to ensure that properties are occupied quickly, minimizing income loss. 

National Real Estate Management Group Can Make A Difference In Your Asset

Investing in real estate can be a lucrative venture, but managing your investment properties can be a time-consuming and challenging task. That's where a professional property management company comes in. Hiring the right management company can alleviate the stress of property management and ensure the success of your investment. While the misconception that property managers are primarily rent collectors only couldn't be furthest from the truth, it should be noted that property managers play a critical role in a property’s overall success. They are a pillar of the property’s success ranging from operations, budgets, customer service, tenant relations, and maintenance management, all the way to marketing the property. Property managers are exponentially important to a well-ran asset.

National Real Estate Management Group is an award winning real estate brokerage that offers full-service from buying, selling and managing real estate. We understand the investment process from conception all the way to disposition and can help you make a difference in your portfolio. Connect with us and learn how!