What are the main steps in property management?
Are you interested in investing in one or more income properties? According to many investment experts, this is an excellent tool because real estate has the potential to provide an extremely interesting return that is generated with other people’s money, i.e. with the rents paid by the tenants. If the search for good buying opportunities is a determining factor in the profitability of your portfolio, real estate and administrative management is a major pillar.
Property management is a process that involves several important steps. These steps can be divided into three main phases: the preparatory phase, the active phase and the follow-up phase. Each phase has specific tasks and responsibilities that must be managed effectively to ensure that the property functions properly and maintains its performance potential.
The main steps of the real estate management of your assets
01
The preparatory phase
The first step in the property management process. This phase involves planning and preparing the property for rental. It is important to ensure that all the necessary documents are in place before beginning the search for potential tenants. The preparation phase also includes estimating the costs associated with managing the property. Maintenance of the building is crucial to preserving its value and avoiding operational problems. It usually includes repair and maintenance of the various building components (heating, electrical, plumbing, roofing, etc.), as well as cleaning and security of the premises.
02
The active phase
This phase of the property management process begins when the property is put up for rent. Tenant management is also important in finding reliable tenants and collecting rent on time. It is important to ensure that tenants comply with the terms of the lease, including payment of rent, and to take appropriate action if they fail to do so. Managing tenant complaints and requests is also an integral part of this phase. It is important to manage these aspects effectively in order to ensure optimal occupancy and to maintain satisfied tenants.
03
The final phase
It is known as the monitoring phase. This phase involves the periodic auditing of the property, including the lease agreements, to ensure that they are still in effect and that all requirements are being met. Writing inspection reports and taking corrective action if necessary are also part of the follow-up. Finally, this phase is also about evaluating the actions taken and the performance of the project. A major question at this stage will be to validate if your income property is following the profitability line established at the beginning. And to make the necessary changes if it is not the case.