History of Property Management

 

The first tenants of the earth - Adam and Eve - were tragically expelled from the Garden of Eden, bringing no shortage of pain and suffering to mankind. But think about it: maybe if God has a good property manager, he will find better tenants and avoid this initial tragedy. Of course, this is a bit stupid. But our view is that property managers can learn a lot from history that has a daily impact. Property management review Landlords and tenants have a long history—for example, medieval feudalism is based on this relationship—and property managers are largely recent developments. But the evolution of this profession is interesting and very enlightening.

 

How Did It Start?

Leaving aside the Garden of Eden, the work of American property managers ranges from owner-managers in the 19th century to caretaker managers in the early 20th century, to professional managers, and finally to what every modern person thinks is the “income maximizer”. The manager must be or considered to be today.

 

Economic research has shown that management quality is one of the biggest driving factors for residents to choose apartments, and it is vital to the owner's income and asset preservation. Therefore, a brief introduction to the evolution of property management and its four major eras is almost a must-read. As the saying goes, you will not know where you are going until you know where you have been.

 

In short, the evolution of the roles, responsibilities, and necessary skills of property managers is mainly driven by urbanization, which has led to the demand for rental housing. after that? Professor Rosemary Carucci Goss of Virginia Tech and Professor Howard Campbell of Ball State University said that the demand for regulations is increasing and real estate assets have become more complex.

 

Owner’s Manager: 19th Century Due to the accelerated urbanization and immigration in the mid-nineteenth century, a huge demand for housing suddenly appeared in the city, and there was a shortage of supply. Therefore, the managers who usually own the property only need to charge rent and perform the most critical repairs.

 

They have no incentive to let them go. Tenants are satisfied-and those who find that they need services can go straight to the road. After all, many others can replace them. Think of the apartments in the Lower East Side of New York City and San Francisco around 1900. They were once single-family homes but were quickly subdivided into multiple apartments to keep up. They are cramped, poorly lit, and lack ducts or ventilation.

 

But before the First World War, poor conditions led to a better life for tenants: new regulations emerged to improve living conditions and ensure that their livability reached a minimum level. At the same time, from around 1900 to the First World War, there was a period of rapid housing construction in the 1920s. This has significantly increased the number of apartment buildings and even created rents for middle-income and wealthy families. If these apartments have any hope to attract tenants, they need to be marketed as comfortable and high-quality places. Slowly, these owner-managers realized that they had to make some changes.

 

 

Over time, many owners have purchased enough properties to manage them on their own. Enter the caretaker manager, who can collect rent from tenants, repair the property, and act as a liaison between the landlord and tenants. Usually, this person is the tenant himself and provides these services instead of rent.

 

Due to the Great Depression, many apartment owners defaulted, and banks—who held the loans—suddenly had large rental property portfolio owners. They weren’t capable of managing these new assets on their own. They needed pros who specialized in haggling with renters contractors and plumbers and oil delivery guys. Thus, in 1933, the Institute of Real Estate Management was born. In addition, the federal government, which was building affordable housing through the new Public Works Administration, needed trained housing managers. Many historians—and some historians study such things—date the birth of the professional property manager to this era.

 

With the development of cars after the war, condos arose in rural areas as an extremely well-known kind of rental. Be that as it may, their intricacy—with current kitchens and apparatuses, forced air systems, and finishing—required administrators and significant support staff. These administrators needed to do significantly more than simply gather rent. With the cultural changes of the 1960s and 1970s, as individuals moved around more and leased condos for more limited periods, property directors continuously needed to assume the extra positions of showcasing and renting new apartments.