The property manager's skills, markets, obligations to the owner, and budgets

Manage for the owner's goals

A property manager combines financial analysis, market knowledge, communication, recordkeeping, and maintenance judgment. Occupancy alone does not measure success: collections, expenses, retention, and property condition matter together.

The management agreement establishes duties, spending authority, compensation, and reporting. The manager owes the owner loyalty, reasonable care, disclosure of material information, and an accounting for funds handled. Follow lawful instructions within delegated authority. Obtain approval for commitments beyond that authority and disclose personal interests in proposed vendors.

Know the market

Residential management emphasizes household needs, turnover, and renewals. Office management addresses business space and services; retail management considers customer access and tenant mix; industrial management considers loading, access, and operational requirements. Compare competing properties by location, condition, services, concessions, and lease expense allocations, rather than advertised rent alone. Rent decisions must respect applicable legal restrictions.

Turn plans into budgets

An operating budget forecasts recurring income and expenses. Potential rent minus vacancy and collection losses, plus other operating income, produces effective gross income. Subtract operating expenses to estimate net operating income. Debt service, depreciation, and major capital replacements are excluded from this calculation. A capital budget plans major improvements and replacements, such as a new roof. A cash forecast shows when funds will arrive and bills will fall due.

Compare actual results against the budget, investigate significant variances, and recommend action. A favorable expense variance may mask deferred maintenance. Reports should explain causes, not simply list totals.

New York deposit handoff

Under Gen. Oblig. Law § 7-105, a holder of tenant security deposits must turn them over to the grantee at delivery of the deed or within five days afterward when the property is conveyed. Notify the tenant by registered or certified mail of the transfer and the grantee's name and address. Accurate deposit records support this handoff.