Property management can be a complex process, consisting of many different aspects that encompass its foundation and responsibilities. To help get a better sense of the job and what a property management company does each day, it can help to evaluate the different types of property management available, as each one has distinct traits that set it apart from the others. Nonetheless, whichever type of project you choose, the role of a property manager can change from one day to the next, making it an exciting career opportunity.
There are actually a few different types of property management, and while each one shares a few similarities with the other choices, they also pose unique challenges that you must overcome. The different types of property management we can explore include residential, commercial, industrial, and special purpose options. Let’s take a closer look at each one to see how each works.
Residential
The first type of property management we will evaluate are residential properties. These rental properties are the purview of managers responsible for handling the tenants who live in a home or another similar location as their primary living quarters.
There are a number of property types that can fit under this umbrella. The first option involves apartment complexes, where the property manager will manage and facilitate all of the tenants living inside that unit. These individuals can stay for varying lengths of time, with some there for just a year or less and others there for many years if they do not feel the need to move and enjoy the place they call home.
However, any rental, either for an individual or for a family or anyone else, where the person will live in the property is going to be considered a residential property, opening up the possibility of wide rental options. As a result, this ideology includes gated communities, vacation homes, mobile home parks, condos, and even single-family homes if the landlord wants to focus on a smaller number of inhabitants in a single location.
Commercial
The second type of property management to consider is what is known as “commercial” property. These consist of any property that is used for non-residential; typically, this kind of property management is represented by business owners who use the property to facilitate their company needs.
While large offices and some single-unit offices can make up the majority of commercial spaces, other options like retail properties, hotels, and coworking spaces will count under this category too. Commercial property managers will spend a good deal of their time handling tenants who will hold onto the space for a long time; however, some coworking spaces may have monthly renters too.
Rental managers may find themselves running many different types of commercial properties, some of which include office spaces that companies use to house their employees or meet with customers and clients.
Any retail spaces you may rent out can also be considered commercial properties; For example, it could even consist of a restaurant area that needs lots of good parking and a good place for the customers to come in and eat. The good news is that many commercial companies will stay in these properties for a long time, making them a good investment.
Industrial
Industrial locations and facilities are another aspect which is common in the world of property management. It is different from the other types because it requires the property management company to adhere more closely to quite a few building codes and regulations to ensure the property is compliant and can remain open. Because most of the industrial complexes out there will handle manufacturing and production, the property manager will need to maneuver local laws and a lot of red tape to get a more significant return on their investment.
It only takes one part of the production to be tampered with for thousands, and sometimes millions, of dollars worth of products to get destroyed in just a few minutes. Having a facility that is properly maintained can be part of the process of taking care of the building and ensuring that it is going to provide the best return on investment possible.
To run an industrial property, you will need to have specialized skills and some experience as well because there is often heavy equipment and machinery inside the facility. If you try to manage a property without some knowledge of how it works, it can lead to some disaster.
Special Purpose
Special purpose property management covers more unusual circumstances. These will be properties that need someone to manage them, but they include projects that lie outside the scope of the other three categories. As a result, the property manager will only be able to market or use it to meet the specific need or use for which it was designed.
One example of this oddball category includes football stadiums. While you can work on a few other events, like concerts, inside, changing it into an apartment, senior housing, or something else would take a lot of work and expense. Similarly, if you have a senior housing complex, it could be hard to renovate it into corporate offices that can suit the needs of a variety of businesses. Additionally, university campuses are difficult to convert into shopping facilities.
These options often need some special management to help them work well. For instance, you may need to hire someone who knows how to manage these properties to ensure they are cleaned well and maintain any of the regulations surrounding them. While it is not a rule with special purpose properties, many of them are quite large, meaning it can take a lot of work to keep them clean and looking their best. Not all property management companies will be able to handle the work of these special-purpose properties.
The Bottom Line
Property management contains many different components and can depend on the type of property being managed. Understanding the differences between the different types of property management can help you decide the type that you need or what type you want to utilize and specialize in for your business.
Apart from that, if you are interested to know about Quality Investment Property Management then visit our Real Estate category.
