Property management is a difficult challenge for owners and boards. You must be skilled and effective in many different areas as vastly different as accounting and negotiation. One easy solution is to create a toolkit of these skills through the use of a property management service. What tools does a quality property management company provide for your organization? Here are five of the most important.
1. Managing Finances
Accounting isn’t everyone’s forte. But a large association or building could require the management of hundreds of individual unit accounts, paying large and small vendor bills, signing contracts, and producing financial statements subject to public inspection. When you hire a management company, they already have all the tools in place that you need to easily accomplish these accounting tasks.
2. Handling Legal Issues
Property owners and boards must navigate many rules that govern their activities regarding other people’s homes and money. Are you familiar with all of them? Most people aren’t, and this can cause serious problems if they inadvertently violate rules.
Property management teams are trained in how to handle various situations without running afoul of legal risks — from actively preventing homeowners from falling into arrears to violation enforcement within the community. You get the benefit of the legal experience on a daily basis without paying extra for expensive attorneys.
The management of your association’s finances doesn’t just include hiring vendors to fix leaks and paying current bills as they arrive. It also must include budgeting and forecasting for the future. Failure to manage your budget with a long-term view could result in the money not being available when a natural disaster strikes or your water main bursts.
But how will you know what amount to set aside for reserves? How can you decide between major projects? And how can you ensure equitable expenses for homeowners/members? The best way to handle these challenges is with the aid of people who have done it all before. Management pros have the advantage of experience in not only operational budgeting but also large project planning over decades.
4. Managing Vendors
You’ll undoubtedly need the services of a wide variety of vendors over the years. But how do you make sure that the ones you choose are all high-quality service providers and that you can get the best results and prices?
Good vendor management is an investment of time and developing the skill to know what to look for. Not only does it require thorough vetting of companies but also contract negotiation, project oversight, managing liens, and developing a network for future use. Outsource this work to professionals so you don’t have to micromanage all the disparate parts that keep your building operating properly.
The first step toward getting steady income and stability for your organization is to find quality tenants and buyers. But doing so — particularly in challenging economies — calls for marketing skills. You’ll need to avoid legal risk (like discrimination laws) while appealing to the best clients. Management professionals can help improve your client pool, increase referrals, and use modern marketing methods.
Could your organization use help with any of these necessary and valuable skills? You don’t have to be experts in every aspect of property ownership or development if you hire a team that includes experts themselves. And a good property management company can do just that.
Southern Property Management Group, LLC was formed specifically to fill the needs of large associations, builders, and buildings that need skilled assistance in many areas. Call today to make an appointment and learn how our services will strengthen your toolkit while keeping costs under control.