In the past, property management had only one meaning, and that was to collect rent. In the 1930s, during the Great Depression, with global unemployment and a stock market crash, banks seized their customers’ properties instead of paying their debts, without any knowledge of how to manage such a large amount of property. This is where the concept of property management was born. For a long time, everyone was an unconscious property manager.
But the growth of investment in the real estate industry in the 21st century by large companies and various investors has led to the emergence of property management as a full-time job and a very sensitive role independently. Property management is the operation, control, maintenance, use and supervision of real estate.The role of management in this context is to care for, monitor and control the useful life and maintain and enhance the condition of real estate. Property management is defined as a process and requires systems and human resources to manage the life cycle of the property. The property manager, on behalf of the owner or owners of the land or property, seeks to obtain the highest level of profit and maintain the current value of the said property. Today, the vital role of computers, IT, communication technology, financial management, legal and auditing in this field is undeniable. In short, the duties of property management can be summarized in three areas:
1. Providing advisory services is one of the important duties of a property manager, given his knowledge and experience of the real estate market. Providing advice on making decisions related to buying and selling with knowledge of market conditions, advising on using market opportunities for investing in the real estate industry, providing and suggesting methods for creating premium services in the building to the employer in order to increase added value, and Consulting on the need to upgrade real estate, meaning changing and transforming a product into one that can adapt to new market needs, is one of the vital tasks of property management.
2. Professional Tenancy; In this field, the property manager is responsible for setting efficient rules, correct contracts and conditions related to mortgages and leases, negotiating with clients, performing administrative or legal affairs, annual financial budgeting, finding a target group and checking and monitoring the credit of the applicant for rent, receiving rent and accounting matters, acting as an intermediary between the tenant and the owner in resolving disputes, following up on advertising and promotional activities, etc
3. The third category is related to building maintenance and repair, which can be divided into the commons management category. The commons manager can work as a sub-director of the property manager, or in smaller buildings, both duties can be performed by the same person.
There are many other things involved in this profession, such as managing accounts and finances related to real estate and pursuing and participating in litigation with tenants, contractors, and insurance companies.
A legal attorney may also be on this team to pursue legal matters. Especially given the sensitivity of the role of laws related to landlords and tenants; for example, termination of contract, non-payment of rent, trespassing, failure to provide pre-determined services, etc. are among the important legal issues that property managers must address.
It is highly recommended that a property manager be familiar with all the legal matters of the municipality, city, province or country. All of these involve very time-consuming and sometimes cumbersome processes that many tenants avoid renting a unit in a high-rise building because they do not want to be involved with them.
However, ensuring that all these processes are followed will increase the confidence factor and comfort level of tenants or owners and will add far more value to the building than other activities.
Different countries around the world have different laws regarding property management. In some countries, these matters can be carried out by natural persons without a business license, while in most countries, a property management license or working under the employment of a real estate company is mandatory.
The important issue is that if these services are implemented within a legally formulated framework, they will have greater order and coherence, and all owners will be required to comply with it.
