In the past, investors have often been satisfied with real estate investments that performed in accordance with original projections, unaware that their gains were frequently a result of   inflationary economic conditions, not good management.

  The investors/owners of today are much less likely to overlook management weaknesses. The proliferation of real estate investment vehicles now in operation has also made it easier to compare overall investment returns and has helped to establish the importance of property management capabilities as a prerequisite for continued success in raising investor capital.

  The purpose of property management is to maximize the desired return from a real estate investment over the life of the property through the implementation of the appropriate strategies. The significant life of a property is determined by the length of time the investor/owner plans to hold that property.

  Another important purpose of residential property management is to ensure that residents live in a safe and clean environment and have their building-related problems attended to promptly.

  Good property management will take into consideration the "multiplier effect" of all recurring income and expense items. All too often, undue attention is given to negotiating one-time "high ticket" items like casualty insurance, while smaller recurring costs, which in the long run might generate more saving if cut, are ignored.

  For many newcomers to the world of real estate investment, property management may appear to involve little more than property supervision - collecting rents, maintaining the property, and filling vacancies. Unfortunately, this limited perspective of building management is often found even in the property management industry itself. In reality, the importance of real estate management in the investment process can not be overstated.