Management indicates the need for real estate to be cared for and monitored, with accountability for and attention to its useful life and condition.
An owner of a single-family home, condominium, or multi-family building may engage the services of a professional property management company.
The company will then advertise the rental property, handle tenant inquiries, screen applicants, select suitable candidates, draw up a lease agreement, conduct a move-in inspection, move the tenant(s) into the property and collect rental income.
The company will then coordinate any maintenance issues, supply the owner(s) with financial statements and any relevant information regarding the property, etc.
This profession has many facets, including managing the accounts and finances of real estate properties and participating in or initiating litigation with tenants, contractors, and insurance agencies.
Therefore, it is a necessity that a property manager is current with applicable municipal, county, state, and Federal Fair Housing laws and practices.
Its mandate is to protect the public interest by enforcing the licensing and licensee conduct requirements of the Real Estate Services Act.
The BCFSA is responsible for licensing individuals and brokerages engaged in real estate sales, rental and strata property management.
The BCFSA also enforces entry qualifications, investigates complaints against licensees and imposes disciplinary sanctions under the Act.
A wrongful action may be deliberate or may be the consequence of inadequate exercise of reasonable judgment by a licensee in carrying out their duties and responsibilities.
Under the authority of the BCFSA, licensing courses are delivered by the UBC Sauder School of Business, Real Estate Division.
In Ontario, no licensing is required to operate; however, ACMO—the Association of Condo Managers of Ontario—is a self-governing body for certification and designation of its members who run buildings with more than 600 units.
Receiving a license as a property manager in Germany is accompanied by membership of the relevant chamber of industry and commerce.
Only some sections under the PMSO have commenced operation and they are the ones concerning the establishment of the Property Management Services Authority (PMSA) as the regulator for the industry.
[7] Those not exempt are required to obtain a license, and failure to do so is a criminal offence subject to a maximum penalty of a fine of HK$500,000 and imprisonment for two years.
All types of properties (i.e. whether residential, commercial or otherwise) are covered by the PMSO, but "property" is given a technical meaning and refers to those which have a deed of mutual covenant (DMC) (a document containing terms that are binding on all flat owners of a multi-unit or multi-story building[16]) since only PMSs provided to buildings with multi-ownership are intended to be regulated.
In India, there is no statutory regulation of property management companies, real estate agents or developers.
[citation needed] In the Republic of Ireland, there is no legal obligation to form a property management company.
[24] Following completion of the review, the Associate Minister of Justice, Hon Nathan Guy, announced on 2 July 2009 that no new occupational regulation would be imposed on property managers[25] in part due to there already being existing laws which could be used to protect consumers.
[29] Best practice guidelines[26] imply Licensed Real Estate agencies conducting property management business should collect rent through an audited trust account, which brings some certainty to the security of the Landlord and Tenants rental Monies, though REAA cases, implies that this is not always so.
Under Romanian law, no business can derive income from any such service that is not declared in this way and should be demonstrable upon request by the client of legal entities.
[35] A few states, such as Idaho, Maine, and Vermont, do not require property managers to have real estate licenses.
[citation needed] Some states with high tourism numbers, such as Hawaii,[36] have strict property management rules.
National designations include: The National Association of Home Builders has a specialized designation for the affordable housing industry through the Low Income Housing Tax Credit (LIHTC) program: In the UK: In Kenya: Property management software continues to grow in popularity and importance.
A property management system, also known as a PMS, is a comprehensive software application used to cover objectives like coordinating the operational functions of the front office, bookings, communication with guests, planning, reporting, etc.
As is evident, in this case, the company minimizes the rent paid to the owner, which is usually lower than market rates.
This model applies to the service apartment space and other commercial establishments, such as retail or business centers that generate revenue.