Property management is one of the functions that most real estate practitioners shy away from because of the complexity and hassles of the whole process. Many landlords do misunderstand or mix-up the difference between Caretakers and Property managers. Caretaking is more concerned with rent collection from both new and old tenants on behalf of the landlords especially for a landlord who is not resident in the same town with the property. The work of a caretaker mostly ends when the tenant pays his rent. There are times where some caretakers act as realtor when looking for new tenants and once there is occupation he reverts back to his original duty of rent collection.
When you talk about the management of properties it goes beyond just rent collection and occupancy. It also involves full control of the property, occupants and lifespan of the property. A large number of the real property owners in Nigeria believe and see themselves as managers of their own properties. They do not understand the technicalities involved. All they are concerned with is collection of their rents at the end of every year. The state of the building and maintenance is not a concern to them.
Wise landlords, who understand what it means to secure their investment in properties, always give their properties to professional property managers. There are landlords who also reside in the same property as their tenants but also give it out to property managers. Property management is the operation, control and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition.
Property management also involves the processes, systems and manpower required to manage the lifecycle of all acquired property including acquisition, control, accountability, responsibility, maintenance, utilization and disposition. Some of the functions of the property managers include:
· Agency functions
· Finance management - Landlord
· Legal duties with the assistance of an attorney
· Personnel administration
· Service charge
· Development/maintenance of structure- use of sinking fund
· Environmental protection
· Customer relationship – Liaison functions
To save yourself as a property owner the stress of sleepless nights or headache in dealing with stubborn tenants, property managers is the antidote for a sound sleep.