Property Management Coursework Example

PROPERTY MANAGEMENT
Student’s Name
Course
Professor’s Name
University
City (State)
Date
Property Management
Introduction
Property management refers to the activities that are aimed at controlling and overseeing the administration of real estate including commercial and residential properties, shopping centers, apartments and condominium units. Ideally, property management is where a firm or an individual manages the properties owned by a different person or entity (Griswold, 2013). In this regard, property managers do the management work on behalf of the actual owner of the property and are paid an agreed amount for their services. At their capacity, there are certain roles that they are expected to play in order to fulfill their obligations effectively. This paper will discuss the basic functions of property management and its benefits to the property owners.
Functions of Property Management
First, property managers offer professional property management services to the property owners. Some investors are only interested in the business of property managers. However, they may not have the time or the expertise required to maintain the properties effectively and to deal with the tenants (Griswold, 2013). They may especially need the skills of the property managers (who have knowledge regarding the federal guidelines) if they take part in affordable housing programs. In order to ensure that their business is running well, they engage the services of a property manager who runs it on their behalf.

Therefore, property management helps the property owners to handle real estate businesses professionally.
Second, property management helps in the marketing and financial services related to real estate. To successfully run real estate errands, one needs to have a proper understanding of the related operating expenses as well as budgeting. That way, one can make earnings from the business (Griswold, 2013). Property managers can execute financial and marketing functions on behalf of the property owners. They set rental rates based on the market values and determine the best ways to ensure that the property generates the expected income. In doing so, the property management firm may recommend special promotions, marketing programs as well as other advertising strategies to attain maximum occupancy of the properties and hence maximum rental income. Through their understanding of the financial statements, they can offer relevant advice to the property owners and give periodical financial reports.
Third, property management conducts the management of the facilities. As the name suggests, property management involves the physical management of the real estate structures as well as the related outdoor areas which might include plumbing, landscaping, roofs, walls, and electricity among others (Griswold, 2013). In this regard, the property manager should ensure a good relationship with the various contractors so that they can promptly monitor the condition and the maintenance of the properties. Because some of these activities might require huge capital investments and that they might affect the tenancy of the property, the property managers should devise ways of retaining the tenants and effectively manage finances to avoid any possible losses.
Finally, property management performs the administration and the risk management activities (Griswold, 2013). This includes maintaining updated records and files, ensuring that the properties comply with the federal, state and local government rules and regulations and ensuring that any possible risk is well mitigated. The property management firms should well update any records that have a financial implication on the properties.
Conclusion
Property management plays an important role in the economy because real estate is a significant contributor to the national revenue. It is also a rising business, and hence there is a need for professionalism. Property management helps the property owners to fill the gaps of management to promote effectiveness and efficiency. The firms can also play other roles as may be deemed necessary.

Reference List
Griswold, RS, 2013, Property management kit for dummies, John Wiley & Sons.