ESSENTIALS OF PROPERTY MANAGEMENT

                  ITS FUNDAMENTAL FUNCTIONS AND APPLICATION IN REAL LIFE                  
                                             Written & Compiled by Nwabuisi Dennis

For

DEPARTMENT OF ESTATE MANAGEMENT

Property Management can be seen as a science or art of applying management functions (planning, controlling, directing, organizing, coordinating etc) in nursing and managing the objectives of a

property owner to make sure that its goal are achieved. This arose as a result of the quest for property owners to get skilled individuals that can be able to manage their asset and get the returns as require in the absence of the property owner.

Property Management is the operation, control and oversight of real estate as used in its most broad terms. Property management is geared towards the management and maintenance of the life span of a property to ensure its sustainability and usage. This implies that a property manager is one who oversees this task and ensures that the functionality of the building is met with respect to the number of years that the building is meant to live.

This aspect of estate management has come to be as a result of the increase and advancement in science and technology, population and other socio-political and economical factors like demand and supply, absentee landlords, complexity of the task involved. In a layman’s knowledge, property management may be seen as ordinary collecting money from tenants and putting tenants into the building in question, but from a professional point of view, property management is far much advanced than that because of the tasks and skills required by the property manager at every point in time and also the advancement in building technology and design and also to know the best materials and features that are required in a building at any point in time that can add value to the building and improve the livability and comfort of the tenants and inhabitants of such building. Property Managers also stand a chance in advising their principal on the type of tenants and the best price for buildings, rents to be collected and also to seek the best legal aspect of the building laws and regulations of the area, interpret and advice his client (principal) as well as the tenants living in such a building.

A property manager serves or plays the role of a third party between the real property owner and the tenant(s) this implies that the property manager liaises between the property owner and the tenants. He protects the interest of the neighborhood, the principal, the tenant and himself s well. Therefore he has so many tasks ahead of him. 

A property manager does not only manage residential properties but rather he extends his tentacle to the commercial properties alike. This also implies that the management function deployed in managing a commercial property is quite different with that of residential property.

At every point in time, a property manager must be able to maintain a good cordial relationship between the tenants and the landlord in the sense that he should be a good listener and be available to carry out some functions and complaints placed by the tenants at any point in time. With this type of practice, a good and positive relationship would be made between them.

ROLES OF A PROPERTY MANAGER:

a.       He is responsible for finding tenants, dealing and evicting tenants as well: This is one of the important role played by a property manager that requires great expertise and experience because it is at this stage that the stress involved in managing such property is stressed and tested in the sense that if the property manager selects a wrong tenant, then he is bond to go through stress of maintenance and collection of rent as the case may be. In other to avoid this, the property manager comes up with a plan of drawing out a form that a tenant would fill, and by this, the property manager would be able to evaluate the type of tenant that he is about to provide accommodation for. The report from the form will provide the property manager with so many informations like the work status of the tenant, his income and the ability to pay rent, number of family ( to check stress and pressure on facilities)

b.      He is responsible for the general oversight, repairs and maintenance of the property: This is a role whereby the property manager has to plan and budget for the general repairs and maintenance of the property. The sustainability of the property and its features are tackled here by the property manager, also the manager ensures that the tripartite functions of the property are all in place.

c.       He is responsible for employing artisans that will help him in the overall management of the building because artisans are important in the aspect of property management as they play a vital role in the major repairs and maintenance, cleaning of facilities etc. Examples of artisans are electricians, cleaners, gardeners.

d.      He is in charge of the rent collection, paying of necessary taxes and expenses incurred in the general maintenance of the building: In the absence of the landlord or the property owner, the property manager who the building is entrusted to can collect the rent on behalf of the landlord and in good faith and spirit of professionalism remit all that he collects from the tenants to the landlord or his principal.

e.       He is also responsible for making periodic reports n the property to the property owner; this would help in highlighting areas of the property that requires attention and improvements. Periodic reports of the building’s condition is really important because it enables the property manager to see faulty areas and how to improve on them to ensure that the tenants are enjoying their money and that they are satisfied with the services the building is giving to them.

f.        He is in charge of making policies that will enable the tenants to live in the building, stating the dos the don’ts of the spaces, accommodation made for the tenants: This implies that he makes provisions and regulations that guides the tenants and other occupants of the premises in other to ensure that the property goals and objectives are met and also to regulate the use of facilities so that they can demise their lives span.

g.      He is responsible for reporting and stating the account details of the building to the property owner. This means that the property manager maintains a profit and loss account showing the income and expenses made on the property.