We often get asked “What Is Property Management”?
A good deal of specialised work goes into the management of your residential or commercial property. Whilst technologies and methodologies continue to evolve, the various tasks, duties and responsibilities of the management of investment property remain constant, and can be distilled into 3 key areas. They are:
1) Document and Estate Management
2) Financial Management, and
3) Physical Management
Let’s have a brief look at what’s involved in each of these key areas.
Document and Estate Management includes the preparation, execution, recording, administration, renewing, filing, and safe keeping of all the property related documentation such as:
• Management agency agreements between the landlord and the agency;
• Supply and work agreements entered into by the agency on behalf of the landlord, with a contractor who’s been engaged to conduct repairs and maintenance on a property;
• Insurance policies taken out by the agency on behalf of the landlord for a property; and,
• Leases between the landlord and tenant – and this also includes condition reports, any special or additional lease conditions that need to be appended to the lease agreement, all bond lodgement and claim documentation along with supporting documentation and evidence in the case of a claim against a bond
Financial Management is naturally anything to do with the money side of property management. It includes the collection of rent and any costs that are recoverable from a tenant, such as water usage, the payment of accounts relating to the property – accounts such as council and water rates, land tax and strata levies, and invoices for any repairs and maintenance done during the month.
Financial management also includes the preparation of the monthly statements accounting to the landlord, and the disbursement of the rent to the landlord, and the End of Financial Year reporting.
Financial management also includes the establishment of budgets for each financial year – particularly in the case of commercial property management – and the analysis of actual costs versus budgeted costs at the end of each financial year with the view to optimising returns generated from the property through value engineering.
And finally, there’s Physical Management – this is what most people think of when they think about property management. Physical Management includes responsibilities such as the marketing, negotiation and eventual leasing of a property, the regular tenancy inspections (also known as routine or periodic inspections) and the inspecting, quoting and arranging of maintenance and repairs.
Physical Management is ensuring that both the landlord and tenant are acting within the framework of the Residential Tenancies Act legislation; it’s also ensuring that the rights of a landlord are upheld as equally as the rights and responsibilities of a tenant are upheld, and ensuring that the property meets certain legislative requirements such as smoke alarm and corded blind compliance requirements.
Physical management also includes the myriad other tasks that simply crop up on a day to day basis, for example, dealing with strata agents in the case of a strata titled unit, or dealing with or negotiating with sensitive neighbours.
Over the coming editions of Renting In The City we’ll delve deeper into the actual tasks a property manager finds themselves doing on a day to day basis, what’s actually involved in leasing a property, and we’ll tackle some of the more common and not so common questions we receive from landlords and tenants about leasing, renting and managing property in Sydney.
In the meantime, if you have a particular question you’d like answered, please head on over to our website at www.therentalspecialists.com.au and look for the Ask Us button in both the Landlords and Tenants sections on our website, and we’ll answer your question in an upcoming edition of Renting In The City. Alternatively, you can email your query to [email protected]
Renting In The City is a publication brought to you by The Rental Specialists that aims to provide regular nuggets of information to both landlords and tenants in an effort to help them navigate the rental property landscape in Sydney. The Rental Specialists is a property agency specialising in property management in Sydney.