If you want to get into the business of property management or if you are a property owner who is looking for a property management company, knowing key property management concepts before getting started will greatly increase your chances of success in either of these circumstances.

First and foremost, property management is a business of customer service with a delicate balancing act between two distinct clients – the actual property owner and the tenants who occupy the property. A good property management company will have built their reputation around being helpful and fair with their tenants and also being responsive to the inquiries of property owners. Most tenants have no way of knowing key property management concepts, and they will feel that their own needs come first. Many real estate owners will have little concern except for the bottom line of their own cash flow. A good property management company must be fair to both clients without cutting off the company’s own business by alienating either group.

Property management involves more than being a middleman for collecting rents and collecting a percentage. Certain fees are associated with various levels of service, with some companies charging a flat rate for a package of services and others creating a custom fit for each property owner based on their individual requirements. If a property management company is going to deal with all the tenant issues while maintaining accounting of all the finances and maintenance as well, then this company will naturally demand a higher price for their services.

Communication is a key property management concept that too many companies fail to make an imperative in their business model. Not responding to property owner inquiries or failing to take action when tenants raise issues will certainly curtail the long term viability of any management company. Property managers should regularly send out statements to their owner clients and check with their tenants to ensure all is right at the property under their care.

Knowing these key property management concepts will ensure your success, either as a manager yourself or as a real estate owner looking for a good management company.