What does a property management company do?

Wednesday October 30, 2024

We understand that your home means more than just an asset, and if you're wondering, "What does a property management company do," know that their top priority should be to help the place you call home operate smoothly. After all, your home is your sanctuary— your safe place.

If your home is part of a community association, we also understand that this personal value only strengthens, as you may have your favorite common areas and neighbors to enjoy all in one place.

But for an association to thrive, it can benefit from a team of experts ready to contribute their time, energy, and resources to help enhance almost every aspect of your community. That’s where working with a property manager and management company comes in. In this article, we’ll continue exploring the role of property management companies in communities and answering commonly asked questions by other residents, just like you.

What is property management?

A professional property management company, like FirstService Residential, helps to carry out the vision and policies or rules set by the board of directors and handles the community's day-to-day operations. We, for example, have the expertise to leverage solutions explicitly tailored for:

What does a property management company do?

Property management companies provide a range of services and management for various tasks. They can help with direct management of:

Renting and lease management
Collecting rent
Communication
Talent acquisition
Legal compliance

Our teams can also support communities in four additional crucial areas, these include:

Financial: We help boards prepare budgets, set and collect dues, and provide insurance, investment and lending guidance to optimize the financial health of your association.

Property: We work with professionals to maintain the physical buildings, landscaping, and common areas so that you’re proud of the place you call home.

Resident lifestyle: We help curate tailored lifestyle programming and amenity activation with our industry experts.

Risk: We provide guidance and solutions to help mitigate risks your community may encounter.

By hiring a property management company like FirstService Residential, you can rely on experienced professionals to handle the day-to-day operations of your properties, allowing you to enjoy life – on your terms, in the communities you’ve chosen, and at ease.

How can you find a property management company?

Finding the right property management company requires careful consideration. You want to choose a company that helps facilitate your daily life, not one that adds more to your to-do lists. To narrow your search, you can consider:

Asking colleagues, friends, or other board members who have experience using a property management company.
Making a quick online search for property management companies that cater specifically to communities with homeowner associations (HOAs).
Searching for companies on your local directory with legitimate businesses and their contact information.
Once you have companies in mind, try contacting them and have an associate speak with you.

What are the benefits of hiring a property management company?

Before you decide to hire a property management company, it’s crucial you know all the advantages it can bring to your community, especially for board members who are navigating the complexities of management.

Some benefits companies can offer include:

Expertise and experience: Property management can be complex, so you need a team that has the latitude and scale to handle all the moving parts of the process.
Tailored Support: Whether you're overseeing single-family homes or high-rise properties, you need a property management company with services that are designed to be consistent and responsive with the support each unique community needs.
Value-added services: With the endless opportunities to enhance their communities’ boards face, they also encounter limited time. Your company of choice should offer value-added services that can help provide additional customized services. For example, FirstService Financial and FirstService Energy, are both value-added services from FirstService Residential.

By hiring a property management company like FirstService Residential, you can rely on experienced professionals to handle the day-to-day operations of your properties, allowing you to enjoy life – on your terms, in the communities you’ve chosen, and at ease.

How much does a property management company cost?

The pricing offered by a property management company depends on multiple factors. Some considerations when establishing cost may be dependent on:

Property size

Location

Services provided

Company expertise and scale

Usually, fees are charged as a percentage of the monthly rental income or a flat fee. But ultimately, the cost of property management should be weighed considering all the previously mentioned factors.

How do you hire a property management company?

Similar to the process of finding a property management company in the first place, you should consider all of your needs and do your research. For instance, you can ask yourself questions such as:

What is an area of improvement I would like to see in my community?
Am I struggling with vendors?
Do I have an efficient communication method for all resident inquiries?
Are the amenities in my community well-maintained and optimized?
How does my community budget and operations compare to others?

Asking these questions is critical since, as a board member, you know your community best, and you can identify the unique needs and see which company can tailor their solutions the best.

After you have researched and spoken to associates from each company you are considering, you should also take the time to carefully review all contracts provided. We suggest reviewing the terms and conditions, fees, and termination clauses with an HOA lawyer as well; do not be afraid to ask for clarification on any unclear points. Additionally, take time to see if your potential companies prioritize their associates. After all, they will introduce new members of the community who will help keep running. Often, companies that do not invest in their associates tend to have higher turnovers and less engaged associates. Researching and studying their websites, their mission to their clients, and their initiatives for associates can be a simple way to weed out those who do not align with your association’s goals and values.

When you communicate effectively with the companies, you can help establish clear guidelines and expectations.

Do you need a property management company?

There’s a simple answer. But it depends on a question you should ask yourself first: Would you rather juggle endless property decisions or simply enjoy life in your community?

If you are looking for a company that does not stop until what’s complicated turns into uncomplicated, FirstService Residential is here to offer the expertise and solutions to anticipate and respond to needs – no matter the property type.

We offer unparalleled local expertise, employing the largest workforce in residential property management in the US and Canada. With 18,000 dedicated associates at the local neighborhoods where we operate, no other company employs more local property management experts immersed in their local neighborhoods more than FirstService Residential.

As the leading authority in residential high-rise, condo, co-op, and HOA management, FirstService Residential understands the intricate needs of community leaders. Collaborating with over 37,000 board and strata council members across the United States and Canada, we know what it takes to make life, simplified.

Learn more about property management in our articles:

To learn how FirstService Residential can support your community's vision, contact a member of our team.