Property management is the operation of commercial and/or residential real estate. This is much akin to the role of management in any business.
One important role is that of acting as liaison between the landlord and tenant. Duties of property management include accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants. In exchange for the service they provide, property management companies pay landlords a percentage of the gross rent collected each month (typically 3-10%), in addition to lease commissions. If disclosed in the management agreement, repair costs may be marked by some property managers. Some property management companies manage home owner associations (HOAs).
Property managers may manage construction, development, repair and maintenance on a property. Property manager relations with tenants gives a face to the landlord and provides them the necessary buffer servicing their desire to profit and distance themselves from their tenant constituency.
There are many facets to this profession, including participating in and/or initiating litigation with tenants, contractors and insurance agencies. Litigation alone is at times considered an entirely separate function, set aside for trained attorneys. Although a person or persons will be responsible for this in their job description, there may or may not be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from property managers. Therefore, it is a necessity that a property manager be current with new laws and practises in their given localities, cities and states.
Property management, like facility management, is increasingly facilitated by computer-aided facility management software.
Buyers as clients
With the increase in the practice of Buyer Agency in the US, especially since the late 1990s in most states, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "Buyer Agency Agreement" not unlike the "Listing Agreement" between brokers and sellers (often referred to as seller agency). The real estate licensee, upon entering into a written agreement with a Buyer, agrees to work solely for the buyer, and, in return, the buyer agrees to exclusive representation. At this point, a real estate brokerage owes the buyer the duties of: Loyalty to the buyer by acting in the buyer's best interest. Confidentiality by not disclosing facts that could influence the buyers ability to negotiate the best terms. Disclosure to other parties in the transaction that the licensee has been engaged as a buyer's agent. The broker negotiates price and terms on behalf of the buyers and prepares standard real estate purchase contract by filling in the blanks in the contract form. The buyer's agent acts as a fiduciary for the buyer.