Property management is about managing different real estate properties like lands, buildings, apartments, offices and others. This kind of management is normally undertaken by some experienced property managers who usually act as the buffer in between the renters and the property owners. Those investors who hardly get any time to find out or screen renters, collect rents on time or listen to their complaints generally hire a skilled manager for performing all these tasks in an effective manner. Their primary responsibilities include finding renters, screening them, arrange for rental property repairs, collecting rents, and handling evictions.
These managers are hired for both commercial property management and residential rented properties. They also deal with all the additional specialties of each of these types. In case of residential properties, these managers are specialized in vacation, full-time or seasonal rentals. While the commercial managers are specialized in some specific commercial property types like retail space or warehouse. Nowadays, in most of the countries it is legally essential that the property managers must possess a proper license for handling the dealings of different real estate properties and their respective transactions. This kind of license is generally determined on the basis of the state laws and the property types. They must strictly abide by the housing guidelines of Federal Fair and the rental practices of the state. The housing laws of Federal Fair prohibit the practice of discrimination of the renters in accordance to color, national origin, race, sex, or religion. But these laws are not applicable on non-residential properties for commercial uses. Each state has some specific established laws for governing the allowable amount of security deposits and eviction related procedures.
Most of the licensed managers of properties work under some real estate brokers in buyers advocates Melbourne. In that case, the rents which are collected from the renters are dropped into the trust accounts of those brokers rather than directly handing them to the original owners. The trust account of the brokers is a special type of professional bank account which is maintained by the brokers only for their business use. Security deposits, rents and cleaning amounts all are deposited into these accounts. These collected amounts are later on paid in the forms of property owners’ payments, management fees of the agents, and property repairing costs.
At the time of hiring a real estate manager, the owner of the property normally signs a legal contract of property management. These managers receive their payments in the form of a certain percentage on the gross rent every month. They are highly authorized to collect the cleaning or security deposits from the renters on behalf of the property owners. They deposit those collected amounts in the trust account of the brokers under whom they work. On the basis of the rental agreement, the late fees are collected either by the manager or by the owner directly. In some of the rental agreements it is specified that if the owner sold his rented property during the rental contract period, then he is solely responsible in paying the real estate charges to those real estate agents.