Property management companies manage the rental of residential homes, apartments, condos, commercial spaces and retail spaces. Property managers can oversee just a single unit or many properties, whether those sites are inhabited full-time or are vacation rentals. A property management company helps a property owner or landlord find tenants; collects rent; takes care of accounting, property maintenance and repairs; handles on-site management; and manages vacation rental check-in and checkout tasks. Although many property owners or landlords successfully manage their own rental real estate, a property management company can help you handle tenant issues and maintenance problems, especially if you are not located in the same city or state. Most property management companies deal with tenants directly, and their tasks include:
- Marketing the rental property
- Collecting rent
- Handling repair problems
- Responding to tenant complaints
- Evicting tenants
A property management company may be a good choice for property owners who have several investment properties, live far away from the rental property, or don’t have time for hands-on management.
When starting a home remodel or new construction project, you will probably hire a general contractor. A general contractor is a professional who is qualified to take a set of building plans and construct them as outlined. The general contractor may help perform the day-to-day building, or they may just hire workers and oversee all the work activities. In either case, the job of the general contractor is to see that your project gets built.
When you have a building project, ask for bids from various contractors. The bids tell you how much each will charge and what their scope of work will be. Once you have selected a bid, you sign a contract with that general contractor outlining the specifics of the project and the milestones during the project when they will receive payment installments. Once the contract is official, the general contractor will bring in their crew to begin construction. The contractor will manage the workers and subcontractors (anyone who doesn’t work directly for their company but that they need to outsource, like a marble installation pro), order all the materials, obtain work permits, and confirm that all the workers and subcontractors are completing their projects as planned. They typically handle all the payments to the workers and subcontractors, and send you invoice. For all these reasons, it’s also especially important to follow a few smart hiring practices when it comes to finding a general contractor. If you are organized and competent to oversee construction projects, and are able to make sure everything is being built properly and meeting code, it’s possible you can be your own general contractor.
A property management company can be a landlord’s greatest asset. As a neutral third party, the property manager handles the day-to-day operations of a real estate investment, from a single vacation home to a large apartment building or several rental properties. A property management company can be especially helpful to landlords who own several units and can’t manage each of them individually, or those who live too far from their investment properties to meet with renters and oversee maintenance. Property management is particularly important if your rentals are part of an affordable housing program. To receive financial assistance from the government, the landlord must comply with a complicated set of rules; property management companies should have both experience and expertise in complying with the rules specific to each housing program.
If you’re doing a home remodel, building a new home or embarking on a commercial building project, you’ll hire a general contractor. A general contractor is a professional who is qualified to oversee and execute construction projects. Each construction project is unique; even two duplicate homes built on lots next door to each other could have different construction costs due to factors like different excavation costs when building the foundation. Since each project is unique, many general contractors make bids on potential construction projects. These bids can then break down to a per square foot cost that encompasses the labor of all the workers needed for the job, materials, the scope of work, and any equipment needed. Materials and finishes make a major difference in your cost per square foot. For example, choosing standard kitchen tiles at $3 per square foot will result in a lower total project cost than imported marble tiles that cost $63 per square foot. Where you live will also affect how much general contractors charge, as labor and the cost to do business can cost less in many regions than in high-cost areas like New York or San Francisco. Here are some examples of average costs general contractors typically charge in various regions:
- Home addition in San Francisco: $250-$270 per square foot.
- New home construction in Knoxville, Tennessee: $100-$200 per square foot.
- Kitchen remodel in Tennessee: $40-$80 per square foot, depending on finishes.
- Bathroom remodel in Vancouver, Washington: $110-$170 per square foot.
Be sure to check out our smart hiring practices when it comes to finding a general contractor.
The licensing requirements for property managers vary from state to state, but many states require property managers to have a real estate broker’s license and in some cases be a legal resident of a state. Property management may not be specified in a state real estate statute, but according to the Institute of Real Estate Management their activities may include advertising the availability of a rental property, discussing a property management agreement with an owner, negotiating leases, showing a rental property and collecting rents.