Real estate
properties can be such a lucrative investment, especially in a prime location
such as Orange County, that it is not unheard of for landlords to hire property
management agencies for help in putting their tenant’s housing affairs in
order.
Property management is defined as supervision of
real estate buildings on behalf of a third party, usually the owner of the
property. Property management can be applied to both residential and commercial
real estate property.
There are many
reasons why an owner of real estate in Orange County would choose to hire a
property management agency to deal with the operations side of his building
instead of dealing with it on his own.
For one thing,
hiring a property manager is more convenient as the owner need not to be within
his property’s vicinity, always available to solve his tenant’s housing
problems (i.e. emergency repairs, leaking pipes, damp wall, etc.). Thus,
absentee owners benefit most from hiring property managers as they can still
continue to collect rent without the added hassle of dealing with their
tenant’s problems on a daily basis.
For another,
hiring a property manager can effectively drive a wedge between the landlord
and the tenant’s relationship. A friendship between a landlord and a tenant can
spell disaster as it might be abused, since there is already an attachment between
the two, making the business wholly unprofitable. For example, a tenant can
decide to always make late rent payments without worrying about the possible
consequences as he assumes the landlord will understand because they are
friends. Or they can cause hard-to-repair damage to the property due to
recklessness or negligence, and still assume everything will be forgiven
because of their friendly relations with the owner.
A property
management firm can mitigate these situations as they can objectively deal with
the problem and act swiftly on it.
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