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As we learn to adjust to the vagaries of modern day living, a distinctly new development to accommodate the same has been the increased adoption of the property manager. In a broad sense, property management is the operation, control, and oversight of real estate. A recent discovery it may be, the traces of this service can be found back to the Greek civilization where people were appointed to manage property and collect rents on behalf of the city administrators.
Modern day property management is linked to the period post the Great Depression in the US – with people out of job and the stock market in doldrums, mortgage defaults soared leaving banks with a corpus of properties, leading to the need of the property manager. The period prior to the depression saw the real estate industry flourish amidst the fanfare of a large migratory population triggered by the industrial era. To present a perspective on the impact of the industrial revolution, in 1790 only 5% of US population lived in cities.
This triggered the need for proper analysis, research, study aimed at adept administration of property becoming of critical importance. Since the depression, the service of property management has developed rapidly across the world, attaining the efficiency and comprehensiveness which characterizes it today. One of the earliest bodies underlining the need of professionalism within this industry was the Institute of Real Estate Management (IREM) formed in Chicago in 1933.
As per the IREM, property management has been impacted by 3 major occurrences:
• The legal system which evolved and gave individuals rights to buy property;
• The increased complexity and size of real property assets;
• The historic conditions of economic change that encouraged, if not required, professional management and maintenance operations for a positive financial result for any income producing asset.
The second half of the 20th century saw the caretaker manager evolve to an emerging professional manager, whose focus was largely asset preservation. This then gave way to the residential property manager of the 21st century, the income maximization centric manager, whose service is evaluated based on location emphasis, design, financial viability, management and maintenance.
The role today involves building a long-term, trust-based relationships with tenants and renters. Going ahead, the role of this property manager would continue to evolve to provide a superior residence experience to the growing affordable market segment catering to the burgeoning middle class segment besides the lifestyle market serving the affluent class.–