Property Management 3

Property Managers need a basic understanding of the laws concerning real estate licensing, contracts, agency, fair housing, employment, property protection, and tenant / landlord relationships. But the preparation of leases, tax reports , and other matters which may invlove legal and accounting expertise should be sent to a legal or tax expert. As an investor your short term concern is your monthly net gain or loss. When renting a property you want to make money above the mortgage payment. Management fees are part of this monthly equation. These management fees are negotiated between the owner and the property manager. They can either be a flat amount per month, a percentage of the gross rents COLLECTED, or a combination of the two. Property managers usually base their fees on a percentage of the gross rents collected. This of course may vary from 3 % on large structures to as high as 20% on individual houses or small buildings. Property managers who also act as leasing agents will often receive additonal compensation for the renewal of leases and for supervising major repairs or alterations to the property. The owner relies heavily the information provided by the property manager about the profitability of the property. The property manager must have and set up accurate records and send regular reports to the owner. A detailed annual statement should also be prepared. Property managers have alot of reponsiblity...................................