With an ever increasing number of properties being held directly by various institutions with little experience managing real estate, the owners are faced with a decision of employing a non-professional to oversee these properties, or paying for professional property management. Some owners might surprised to find out how much property management costs, but when we walk you through all the areas we cover – you can see all the work we do for you and your property.

Needless to say, the management requirements of any given property are unique and in some cases it may not be necessary to hire a professional property manager. For example, if the property is an empty field and all that has to be done is periodic inspections to ensure the land is not being used illegally, almost anyone can do this. However, for most types of property that is actually being used by tenants – be it commercial or residential – the managements obligations are much more demanding and it really pays to use a professional that can handle most of the issues that arise.

Although the requirements for any given property may differ widely, in general there are six different sphere’s of responsibility that are handled by in the course of professional property management, all of which require some specialized knowledge, skill, and tools that the non-professional is unlikely to have. These six spheres of responsibility can be described as: physical property management, human resource management, financial management, marketing and tenant relations, legal compliance and risk management.

The management of the physical property tends to involve maintaining the property to the standards of both the owner and the tenants. This involves ensuring that all of the property’s features are in good working order, ensuring that everything is clean and properly maintained, fixing regular problems, bringing in specialist contractors to fix complex problems (elevator repair, swimming pool maintenance, landscaping, and so on), and otherwise making sure that both the owners and the tenants are happy with the properties current state.

Human resource management means dealing with all of the various employees, contractors, or outside service providers needed to maintain the property: cleaners, gardeners, general maintenance personnel, specialized maintenance personnel, and so on. Human resource management ties directly into the third sphere: financial management. Generally speaking, the property owners provide a fixed budget for the maintenance of the property, so the property manager has to keep everything running with finite resources at his or her disposal. So, financial management – especially budgeting – is a key component of professional property management.

The other three spheres of responsibility are fairly self-evident: marketing and tenant relations means promoting the property and dealing with tenant concerns so that the owner does not have to. Legal compliance just means making sure that all of the relevant legal requirements – fire codes, waste disposal laws, health codes – are observed and the property passes any inspection by the relevant authorities. Risk management involves developing contingencies and taking preventative measures to avoid damage or liability stemming from fire, accident, storm, or other potential risks faced by any fixed property.

With so many very real responsibilities falling on the shoulders of the property manager, opting for professional property management is likely to save property owners a lot of time, energy and annoyance. It is better to pay more for the piece of mind of knowing that a professional is watching over your interests than to save money and merely hope for the best.