Home Based Jobs – Property Management

06. Feb, 2010 0 Comments

So you want to be a Property Manager

Property management can be a very lucrative business. Well-managed property keeps homeowners from having headaches with resale values. So what is it that a property manager accomplishes? A property manager manages the day-to-day dealings, which include but not limited to the following: (hiring contractors, management of financial operations, and daily affairs/issues). They manage investment residential and commercial properties in order to preserve property earnings. Community association managers (also property managers) oversee planned developments, cooperatives, and condos through a homeowner or community association.
When the daily tasks of managing a property get to the point where help is needed (could be due to lack of knowledge or time from the owner)—this is when a property manager is called for their services. Home based jobs (self-employed) in this field make up over half in this occupation per the Bureau of Labor Statistics.
Some of the best property managers have already had experience with real estate and then decide to become a manager; these managers have much experience and expertise in the business, which is what is needed to really be successful.

Legal Obligations

Home-based jobs should always follow ethical guidelines. Before getting involved with this type of work—you need to make sure you are fully aware and understand the local fair housing laws, the Americans with Disabilities Act and the Federal Housing Amendment Act. You have to make sure that there is no discrimination involved with advertising or renting. You have to also make sure that your property is in agreement with the various local, state, and federal laws and building codes as referenced with the Bureau of Labor Statistics.

FEES

Besides your quality of management, your fees can make or break your business. What you charge should coincide with the services you provide. These fees should be broken down in the property management contract.

· Commission – this fee is approximately 3% to 15% of the monthly gross rent. This is paid on a monthly basis and it is given to the property manger for the management of the property. This is a normal fee.

· Flat Rate – This can be given in replace of the commission. Can range from $50 to $200 a month. This is a normal fee.

· Lease Renewal – This is a fee that’s charged to the owner of the property when the property manager performs lease renewal services. This fee has been shown to range from $0 to $200 for each lease renewal.

· Advertisement – This fee is paid only when the property manager advertises. The contract should specify this. Many property managers try to get away with charging a high price, but do not go all out with advertising. Make sure the fee you charge coincides with your advertising methods. It would be horrible if the owner started asking questions about the high fee you charge and you are only utilizing free online advertisements. Don’t get caught doing this. This is the best way to lose business.

· Early cancellation fee – Can range from approximately $0 to $600. All I have to say about this is—if you know you have been doing EVERYTHING in your abilities to market this property, if you invested much time and finances to make sure things ran correctly and spent your own money on much of the advertising—then this fee is justified; however, if you know you didn’t do your due diligence and have been pocketing fees from the owner throughout—Why charge this?

· Lease-up / Setup / Finders – This fee is to reimburse the property manager for all the leg work it took to set the property up in the beginning, and finding a tenant. Generally this non-refundable fee is paid before there is a tenant and will be taken out of the first months rent when there is a tenant available. This one time fee usually ranges from $0 to the first months rent.

The fees shown are what is generally charged, but of course you have managers who add extra fees on the contract for anything and everything. Utilize sound judgment and good business sense when creating your fee schedule as this is what makes you or breaks you in this business, just like with many other home based jobs in general.