Property Management is the management, administration, and control of real property and residential or commercial property. This also includes land and residential real property. The main function of property management is to maintain a property in a secure and functional condition.
There are many ways that property management can be performed. The most common forms of property management are the following: lease purchase agreement (LPA), lease option agreement (LEOA), and owner occupy and rent back arrangement (OAR). Property managers generally perform their duties by carrying out property maintenance, repair, replacement, etc. There are different types of property management.
The most common form of property management is lease purchase agreement or LPA. A lease-purchase agreement is where the property owner allows the property manager to take possession of his property without the owners consent. A lease-purchase agreement is commonly used when a property is about to enter into a new lease agreement. For instance, a property owner who has just purchased a property may agree with the property manager to allow them to take the property in exchange for paying a fee for their services. The lease-purchase agreement is a convenient way for a property owner to take over his property without the hassle of having to find an investor to invest in the property or pay a huge amount of fees.
Another common type of property management is a lease option agreement or LEA. Lease option agreement is used when a property owner leases his or her property to a tenant for a particular period of time. It is a better solution than purchasing a property as a rental, as a property owner can pay the monthly rent instead of paying large sums of fees.
A third type of property management is owner occupied and rent back arrangement or OAR. With this type of arrangement, the property owner hires the property manager to manage and take over his or her property in case of default on the payment of rent. The property owner can then sell his or her property to recover his or her money that has been lent. In return, the property owner pays the property manager a small fee for his or her services.
Property managers usually receive benefits from their contracts. The main benefit is to earn a commission for handling their property and this is usually determined by the number of properties they manage, the level of maintenance they have to carry out, and the type of property they manage.