The Differences Between Property Management and Community Management
If you plan to develop or invest in a 100+ unit apartment or condo complex, it’s no longer simply an investment in real estate, but an investment in community. You may already be familiar with a property manager's role in the operations of your current real estate investments, but properties at this scale require a new role: A community manager. Understanding the difference between property management and community management roles is important as they both create value in their own ways. You probably already know that by operating a high-quality complex via tried-and-true property management techniques, tenants will stay longer and pay a rent premium compared to poorly managed complexes. Additionally, offering an attractive community for tenants to be a part of will contribute to their decision on whether they renew or leave come time for lease renewal.
At first glance, these roles might appear similar, both involving managing properties and ensuring residents have a high-quality living experience. However, they're like two sides of the same coin, each with its own unique focus and responsibilities. In this guide, we're going to explore the differences between property management and community management, shedding light on how these seemingly similar professions are, in fact, quite distinct.
Property Management
Property management, at its core, involves the day-to-day oversight of properties, encompassing operations, maintenance, and financial aspects. Whether it's a single-family home, an apartment complex, or a commercial building, property managers are the unsung heroes who keep everything running smoothly while putting out fires.
Responsibilities of Property Managers
Maintenance and Repairs
Picture this scenario: You're a property owner with an exquisite multi-family rental property. It's your property manager's responsibility to ensure that it remains in great condition. From addressing minor issues like leaky faucets to coordinating major renovations, property managers are the ultimate problem solvers. Suppose a tenant reports a broken window - the property manager promptly arranges for repairs, ensuring that the property maintains its allure.
Tenant Relations
Property managers serve as the crucial link between property owners and tenants. They handle all tenant-related matters, from leasing agreements and rent collection to addressing inquiries and concerns. They are the friendly faces that welcome tenants upon move-in and the dependable point of contact when issues arise.
Financial Management:
Property managers collect rent, keep records of expenses, and oversee budgets. They ensure that your property remains financially sound, so you can sit back and enjoy your passive income.
In essence, property management revolves around safeguarding your real estate investments. They make sure that your properties remain valuable assets, benefiting both you and your tenants.
Community Management
Alternatively, a community manager’s focus extends beyond individual properties to encompass entire neighborhoods, homeowner associations (HOAs), and planned communities.
Community management centers on fostering a sense of belonging and overseeing common areas and shared amenities. The responsibility of creating a positive community is something that property owners and their community managers must take seriously.
Community Interaction:
Unlike property managers who primarily deal with individual tenants and property owners, community managers engage with the entire community. They become the friendly faces that residents turn to for guidance and support.
Your community might have a community board, either physical or digital, where the community manager and other community members may post news about exciting community events or important updates.
Caretakers of Common Areas:
Community managers shoulder the responsibility of maintaining the common areas and shared facilities, keeping them in pristine condition. Whether it's the community pool, landscaped parks, or gated entrances, they ensure these spaces remain inviting and functional.
For example, imagine living in a cozy suburban neighborhood. Your community manager takes charge of preserving the picturesque park where families gather for picnics and children play. They also oversee landscaping, arrange for regular maintenance, and even plan community events to bring neighbors together.
Annual General Assemblies:
In larger HOAs, community managers run Annual General Assemblies, where a Board of Directors for the Association is elected. This board plays a pivotal role in determining the overall management and financial direction of the community. Community managers ensure that these crucial meetings run smoothly, facilitating community participation and decision-making.
Leasing and Additional Income:
While community managers aren't involved in leasing individual properties, they do explore innovative ways to generate income for the community. This includes leasing portions of common areas for promotional purposes, such as hosting events or setting up market stalls. The goal is to raise funds that benefit the entire community.
Similarities and Overlaps
While community management and property management each have their unique focus, it's not uncommon to see shared responsibilities and some overlapping duties that ensure the seamless operation of properties and communities.
Managing Multiple Properties
Both property managers and community managers are often tasked with overseeing multiple properties within their purview. While property managers concentrate on individual units or buildings, community managers take charge of the broader community, which may encompass various housing units or structures.
Budget Preparation and Oversight
In both property and community management, the art of budgeting plays a pivotal role. Property managers prepare budgets that encompass the specific needs and costs associated with individual units or buildings. Conversely, community managers prepare budgets that translate into service charges, shared by each property owner to maintain common areas.
Oversight of Service Providers
Whether it's property management or community management, both roles involve coordinating with various service providers. Property managers liaise with vendors and contractors to maintain individual units and address tenant concerns. Community managers, on the other hand, contract service providers to ensure the upkeep of shared amenities.
Occupant Well-Being and Conflict Resolution
Property managers and community managers share a commitment to the well-being of occupants. They are on the front lines of addressing tenant or resident concerns, ensuring their comfort, and resolving disputes when they arise. Both roles involve active engagement with tenants or homeowners to foster a positive living environment.
Rule Enforcement
Property managers and community managers play essential roles in enforcing rules and regulations. Property managers enforce lease agreements and property-specific rules, while community managers ensure that community rules are followed. These regulations contribute to maintaining order and harmony within the properties and their communities.
For example, the property manager of an apartment complex is expected to enforce rules regarding pet ownership on the premises. On the other hand, the community manager of the same complex may host a dog gathering for responsible dog owners that have obtained approval from management to own a pet on the premises.
Realicore’s Approach
At Realicore Property Management, building community is one of our core values. We take pride in our unwavering commitment to providing exceptional property management services tailored to the unique needs of our clients. Our property managers are experts in maintaining properties, building tenant relations, and managing financial aspects. They work tirelessly to ensure that your investments are thriving and generating optimal returns. If you find yourself in need of a property management team, Realicore is here for you. Contact us today at (909) 810-2108 to see the Realicore Difference!
