With the consistent accumulation of property and assets, the question to seek to know what are the 4 types of property management becomes duly imperative and useful as an added advantage to the massive growth that is envisaged. There are however two ways to the importance of property management. It is either you are some owner of so many properties and assets across your environment, or you are just a property manager that needs a comprehensive grasp of this concept.
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Concept (Property Management)
Deeply, PM is the operation, control, maintenance, and oversight of real estate and physical property which may include residential, commercial, and land real estate. Property management is the administration of personal property, equipment, tooling, and physical capital assets acquired and used to build, repair, and maintain end item deliverables.
Property management involves the processes, systems, and workforce required to manage the life cycle of all acquired property as defined above, including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.
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Roles of Property Managers
Before we dive into outlining the types of property management, we will have to check out some of the facets and roles that it could play in the struggle for expansive growth in the management:
One very great role is the management of accounts and finances of real estate properties including participating in or initiating litigation with tenants, contractors, and insurance agencies.
Litigation is sometimes considered a separate function set aside for trained attorneys. Although a person will be responsible for this in their job description, there may be an attorney working under a property manager.
Special attention is given to landlord/tenant law; most commonly, evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most attention from property managers. Therefore, it is a necessity that a property manager is current with applicable municipal, county, state, and Federal Fair Housing laws and practices.
Property Managers are also:
- Collecting rent and handling late rent payments.
- Scheduling and organizing property maintenance and repairs.
- Screening prospective tenants.
- Hiring and managing property staff.
- Drafting and signing leases and lease renewals for the property owner.
- Creating and adhering to budgets — as agreed upon with the property owner.
- Marketing the property’s vacant units.
- Coordinating and completing property inspections.
- Communicating with tenants on behalf of the owner and handling resident complaints.
- Serving as a face of the property — especially to contractors and prospective tenants.
- Handle lease agreements, including deciding if short-term leases are appropriate.
Types of Property Management
Answers to what are the 4 types of property management that we can know and use initiate our various growths as property managers or as property owners:
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Industrial Property Management
When you manage an industrial property, you will maintain and inspect the properties. You’ll also serve as a communication liaison between landlord and tenant. There are specialized duties as well. You must ensure the property complies with building codes and regulations. Other jobs include coordinating real estate tax reviews, bidding for vendor services, and managing staff. Examples of industrial properties include:
- Heavy manufacturing facilities such as automotive plants and steel mills
- Light manufacturing factories such as food packaging
- Warehouses
- Distribution facilities
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Commercial Property Management
Commercial property managers oversee many kinds of non-residential properties. Typically, commercial property management concerns business owners who need a rental space to work out of.
While large offices and single-unit offices make up most commercial spaces, co-working spaces, hotels, and retail properties also count as commercial properties. So, commercial property managers spend the majority of their time dealing with tenants who rent spaces long-term. However, they also interact with monthly renters in co-working spaces and even customers in retail spaces.
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Residential Property Management
Residential property managers are typically hired for rental properties, and they manage the rental process. They can be hired to manage:
- Single-family homes
- Vacation rentals
- Multifamily homes
- Town houses
- Condominiums
- Apartments
- Manufactured homes
- Real estate-owned (REO) properties
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Special Purpose Property Management
Special purpose properties are just like they sound — they’re properties that need management but don’t fit perfectly into one of the above categories! By definition, a special purpose property can’t be easily converted for other uses. So, most special purpose properties cannot be marketed or used for any purpose other than the one it was originally intended for.
For example, a football stadium can’t easily be transformed into apartments, senior housing complexes can’t straightforwardly be renovated into offices, and converting university campuses into shopping centers isn’t feasible.
