Types of Rental Property Management

Posted: 11/20/2012

So what is rental property management?

It's basically what it sounds like - companies act as a middleman, if you will, between a unit's tenants and landlord. Look at it like a property relationship where both parties benefit.

Landlord Benefits

Most people are hesitant to dive into the rental market because they'd rather not deal with tenants. Let's face it-things happen, break, etc., and not always at a convenient time. On top of that, a landlord needs to manage the tenant, which may also come with its own set of issues.

That's where management companies come in. They provide landlords with piece of mind, and eliminate the potential headaches of owning a rental property. No more calls in the middle of the night to fix a leaky faucet or why the refrigerator isn't working (come to find out that it's unplugged).

Tenant Benefits

On the flip side, tenants also benefit from this process as well. Some landlords may be unresponsive to a tenant's needs or even be too hands-on for tenants that want privacy.

Now that we know the benefits, let's take a look at the different types.

Types of Rental Property Management

The different rental property management types are listed below, but just like many other things, it's a matter of your personal situation, needs, and what you're looking to accomplish.

The four main types are as follows:

  1. Commercial Property Management
    • The management of commercial properties deals with hotels, offices, warehouses, restaurants, industrial parks and factories, among others.
    • Some risks exist always with these kinds of properties, including:
      • Maintenance expenses that are not programmed
      • Checks that bounce
      • Rent payment defaults
      • Lack of demand, which results in low occupancy of the property

  2. Residential Property Management
    • This kind of management that, you guessed it, deals with any kind of property which is designed to be used for residential purposes.
    • This can include cooperative housing units, condos, townhouses, apartments, duplexes, single units or family homes.
    • The management of those properties can include being at the disposal of the tenants, fixing and maintaining the properties, and collecting the monthly rent.

  3. Industrial Property Management
    • In order to qualify as industrial property, the real estate needs to be used for purposes that are industrial in nature.
    • Factories, warehouses, research facilities or manufacturing plants, are all examples of industrial properties.

  4. Retail Property Management
    • Managing retail properties involves dealing with the properties which are used by a business, in order to sell either services or goods.
    • Many types of businesses could be included within this bucket, but the main ones would be:
      • Convenience goods, furniture, or boutique stores

If you're looking to invest in properties which would then need to be rented out, but don't want to deal with all the headaches, leave the management to the experts. Besides, why quit your day job?

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