Property Management is...

There have been many articles posted on the benefits of property management, the comparisons with self managed properties and how to find a property manager to suit your requirements.  The following definition captures what you have the right to expect for your monthly property management fees, anything less is not acceptable.

As a founder member of the Leading Property Managers of Australia, Anne Warren stands behind LPMA's Code of Practice with the True Property Management Guarantee.  Taking the risk out of property management.

Definition [Wikipedia]:

Property management is the operation, control of usually on behalf of an owner, and oversight of commercial, industrial or residential real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its usable life and condition. This is much akin to the role of management in any business.

Property management is also the management of personal property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain end item deliverables. Property management involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.

One important role of a "Property Management" is that of liaison between the Owner of record and the actual tenant/lessee tenant. Providing a buffer for those owners who are desiring to distance themselves from their tenant constituency. Duties of property management generally will include a minimum of these basic primary tasks;

1. The full and proper screening or testing of an applicant's credit, criminal history, rental history and ability to pay.
2. Lease contracting or accepting rent using legal documents approved for the area in which the property is located.
3. Mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

There are many facets to this profession, including managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.

Every state of Australia has different licensing requirements. To be able to trade as a property management company, the company has to be licensed with a principal or licensee in charge. Each staff member of the company has to have a certificate of registration.

Victorian Property Management includes new legislative requirements under the Owners Corporation Act 2006 (commenced 2008 and replaces the old Body Corporate provisions under the Real Estate Act). Owners Corporation Managers are required to be Registered with Consumer Affairs Victoria and hold insurance. Real Estate Agents are required to be licensed. Melbourne has seen significant growth in large multi unit apartment developments and Owners Corporation Management is evolving as a result. Owners Corporations can be residential, commercial or a mix.