3 Services Tips from Someone With Experience

Real Estate Risk Management By far the highest number of commission penalties, consumer complaints, and license suspensions and revocations in most states, are connected to property management. It’s not that those property managers are being incompetent. It’s just that the business of property management is very transaction-intensive. Though your typical agent might do a dozen sale transactions yearly with a purchase agreement and related documents, the typical property manager can do hundreds of smaller transactions. Just because they’re smaller doesn’t give these transactions less importance, and it doesn’t decrease the risk entailed in doing them. Being a property manager, you’re dealing with an owner to market and rent their property, handle rent collection and remit the money to them, as well as to manage the property in all aspects, from maintenance to enforcement of tenant rules. That means you’re transacting with owners and tenants, repair guys, advertising companies, contractors and so on. Each of these transactions brings some risk into your business, especially financial. This makes risk management very important. The property’s economic survival can be threatened by a big disaster. The records kept play a huge part, as any legal action taken by others can be easily disputed if there are detailed records that oppose their claims.
A Quick Rundown of Services
A substantial part of risk management is the determination of risk against reward. Let’s say a property has a swimming pool on it. The property manager and owner must balance the value of the pool and the risks it brings. When a risk has been identified, it can addressed in three ways:
What I Can Teach You About Services
Avoidance The pool will be removed because the additional rental income is a lot less than the cost of insurance or the risks involved. Control If the pool is retained, a coded lock and fence will be installed to keep small children out. Risk Transfer The most usual manner of dealing with risk is to buy insurance to transfer the risk to the insuring company. A good property manager plans for problems, keeps records of each activity, and keeps assessing these functions in order to determine if change is needed. Documents and Email In a lot of states, six years is the mandatory period for keeping transaction records. However, it is best to keep them for longer, especially if you can do it in electronic format. You can be sure that if any of the parties have a claim, a person who wants to sue you for an incident six years and ten days ago, can still have their document copies. It’s a lot harder to plead your case without your own copies. Lastly, in terms of email, whatever court action that involves a federally guaranteed loan (pretty much every residential deal), can force you into producing emails that are related to your transaction and communications with your customer.