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Property management involves maximizing net revenues or productivity of property based on managing rental flows, tenant retention, managing and contracting property operation. Property operation includes cleaning, maintenance and repairs, paying utilities, property insurance, property taxes and so on), reporting to owners and overseeing resident or on-site managers. Property managers are usually involved in leasing and facility management decisions. Those that manage several properties and are involved in acquisition, disposition, financing and portfolio management decisions are known as 'asset managers.' Most property managers start as on-site managers, working closely with tenants.
Consolidation is the general trend in the industry. Many property management firms are national or international in scope and are able to take over an entire institutional portfolio of various properties from different cities. Property managers' fees are often based on property rental flows, as well as the complexity of the property management work. For example, shopping center property managers may be involved in tenant merchant associations, joint promotions and advertising. It involves more time than a single tenant industrial property, where the primary management function is accounting-based control, reporting and monitoring.
For more information about property management, see Building Owners Managers Association, BOMA, and the Institute of Real Estate Management, IREM.
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