To answer this question, it is important to understand the skills that a property manager needs ?
Skills and Expertise
Property management is not just about managing according to your preferences. There are many administrative, legal, technical, and financial constraints involved.
Rental law, supplementary laws, and case law are complex and sometimes difficult to understand. Everything is regulated, and tenants have specific protections under residential, agricultural, and commercial lease agreements. Some of the extensively regulated aspects include:
Signing the lease agreement Determining the initial rent Security deposits Rent payment and non-payment Rent adjustments and other provisions Subleasing Family dwellings Property condition reports Defects in the leased property Termination of the lease Tax considerations Heating and ancillary costs statements Legal procedures and disputes, etc.
Tenant search and screening
Negotiating and concluding lease agreements
Preparing mandatory official documents
Contract management and monitoring deadlines
Overall property management
Interactions with contractors, tenants, insurers, authorities
Obtaining and evaluating quotes, assigning and overseeing work
Regular technical inspections on-site
Handling damages and insurance claims
Rent control and payment reminders
Heating cost allocation
Accounting Financial closing
Balance sheet and income statement
A property manager must be able to negotiate and find solutions in sometimes challenging situations. They must also be able to handle stress and conflicts.
The most common mistakes made by non-professional property managers are as follows:
- Violation of rent determination or modification errors
- Incorrect termination of leases
- Inadequate tenant screening
- Mishandling non-payment or rent reduction requests, lack of knowledge of lease contract legal provisions
- Poor comparison of offers, selecting the cheapest contractors without verifying material quality, workmanship, and services
The greatest challenge is to acquire solid knowledge and consistently apply all legal rules and procedures. Mistakes can have serious financial consequences. Additionally, it is important to allocate sufficient time to perform various tasks.