Whether you’re the owner of residential or commercial real estate, a property management company can provide an array of benefits. From inspections to emergency repairs, a reputable management company offers peace of mind for all of your property needs. However, due to the wide scope of their work, some aspects of property management are unknown to property owners and tenants alike.

Since Winmar Corporation has been overseeing commercial listings in Lexington, KY since 1951, they are well-equipped to shed light on the subject. Below are three aspects of property management that may surprise you.

3 Things You Didn't Know About Property Management

1. Management Agreement

Surprisingly, many property owners don’t understand the facets of their management agreement. For example, some companies charge a flat monthly fee, while others charge a percentage of the property’s rent. The complex nature of management agreements and potential negotiations are ambiguous to those outside the industry.

On the other hand, many tenants don’t realize a management agreement even exists. In some cases, tenants have a hard time understanding the property management company works for the owner, not for those renting the space.

2. Evictions

Evictions are an uncomfortable side of property management, and many people don’t realize it’s the property management company, not the owner, that must handle the legal process. Because of this responsibility, managers must be aware of laws surrounding commercial rental space in their state. 

3. Accounting 

While the extensive amount of accounting performed by property management companies should be admired, it’s mostly unknown. Aside from collecting rent for the office building, the property management company maintains their own balance sheets, adjusts owner and tenant ledgers for repairs costs, and tracks utility payments throughout the year. Depending on the company, further accounting roles can be assumed by third party property management companies.

Like many industries, the nuances of property management can be surprising. With over 60 years of experience and positive reviews, you can trust Winmar Corporation to fully manage your office space. Contact them today at (859) 254-5755, or visit them online to learn more.