What Do Property Management Firms Do?

Property management companies are referred to as property companies. Property companies are specialized in the professional management of permanent buildings, auxiliary equipment, various facilities and related sites and the surrounding environment on the ground. They provide a good living or working environment for owners and non-owners. Economic entities. As an independent corporate legal person, a property management company must be able to bear civil and economic legal responsibilities independently with a clear business purpose and a management charter approved by the industry authority.

Property management company

Property management companies are referred to as property companies. Property company is specialized in ground

The nature of a property management company is determined by the nature of the property management. Property management is serviceable, so property management companies are also serviceable. Property management companies do not produce products, but provide services and enjoy preferential policies in the tertiary industry. The nature of a property management company has the following characteristics:

First, property management companies are independent corporate legal persons. A property management company is an economic entity established in accordance with legal procedures, engaged in property management activities, providing independent services for owners and tenants, with independent accounting and self-financing. The main signs of a property management company as an enterprise are: possessing a certain amount of funds and equipment, having the status of a legal person, being able to independently complete the management and service of the property, operating independently, accounting independently, enjoying civil rights in its own name, and bearing civil liabilities. Therefore, in addition to the industry's own professional characteristics, property management companies, like other enterprises in terms of market position, operation and legal status, must follow the market competition rules such as quality, reputation and efficiency of corporate legal persons. Therefore, the property management company is an independent enterprise organization, and it has independence and autonomy in property management operations.

Second, property management companies are service enterprises. The main function of a property management company is to create a comfortable, convenient, safe and elegant working and living environment for owners and tenants through the management of the property and a variety of services provided. As a non-productive enterprise, the property management company mainly achieves its work goals through the maintenance of the property, cleaning and sanitation, and directly providing services to the owners and tenants. Therefore, in essence, there is only one "product" of a property management company, and that is service. The services provided by the property management company are paid, are operational, and are economic activities of a corporate nature.

Third, the property management company bears some special functions of administrative management to some extent, so it is an important part of the modernization of the city at this stage. As China's urban construction management system is undergoing reform and development, some management functions and powers have not been completely transformed and clarified. Therefore, while providing services to owners and tenants, property management companies have also undertaken some relevant government departments' urban management. Functions such as the quality and safety of buildings, municipal facilities in residential quarters, etc.

Effective October 1, 2007

Property management companies can be divided into different types according to different classification standards.

Divided by existence

Property management companies are classified according to their existence, with independent property management companies and subsidiaries

Property management companies are entrusted by property owners and users to manage and maintain their properties and provide various services to property owners and users. The relationship between a property management company, the property owner and the user is the relationship between commission and trust, service and service.

The composition of property owners and users

The composition of property owners and users is relatively complicated. Generally speaking, they can be divided into two categories: one is a corporate body and the other is a private user.

1. Corporate body

Corporate bodies can be divided into enterprises, institutions and social groups. The legal entity as the owner of the property means that the owner of the property is not a natural person or an individual, but an enterprise, public institution or social organization. Enterprises include companies of various natures and industries. Institutions and social organizations include government agencies, various associations, and so on. Where a property is purchased or leased in the name of a body corporate, the body corporate constitutes the owner or user of the property.

Private users

A considerable part of the property rights or use rights of residential, office, public commercial real estate and other properties are owned by individuals, especially residential buildings, with the majority of private owners and private users. The composition of private users is also relatively complicated. In terms of household registration, there are locals, foreigners, and foreigners; in terms of status, there are entrepreneurs, national civil servants, self-employed people, teachers, white-collar workers, and overseas Chinese; In terms of income level, there are high-income households, middle-income households, and working-class and low-income households. But no matter what kind of person, as long as they are the property owner or user of the property, they are the private users of the property and enjoy the rights and obligations that the property owner and user should have.

Owners Management Committee and Owners Conference

According to Article 6 of Decree No. 33 of the Ministry of Construction: "Residential communities shall establish a residential community management committee (hereinafter referred to as the" management committee "). The management committee is under the guidance of the real estate administrative department, The composition of representatives elected by users represents and protects the legitimate rights and interests of real estate property owners and users in residential communities. "

The management committee is jointly elected by the owner and the user, and represents the legitimate rights and interests of the owner and the user. The Management Committee is a permanent institution involved in property management. The rights of owners and users are mainly realized through the management committee.

Under normal circumstances, if the property has delivered more than 50% of the building area, or the delivered building area has reached more than 30% and less than 50%, and the use has been for more than one year, the first owners' meeting should be held to elect a management committee. Thereafter, the owners' meeting is convened by the management committee. Under normal circumstances, the owners' meeting is held once a year, and under special circumstances, it can be held at any time. The decision of the owners' general meeting must be passed by more than half of the voters. If for any reason, the users or other agents who are unable to participate in the voting can vote on their behalf.

The main tasks of the owners' meeting are: to elect the management committee; to supervise the work of the management committee; to listen and review the work report of the management committee; to listen to the opinions and suggestions of the owners; Discuss other issues that need to be studied.

During the closing period of the owners' meeting, the elected management committee will implement the decisions of the meeting and be responsible for daily work.

The rights of the management committee include: formulate the charter of the management committee, and safeguard their legal rights on behalf of owners and users; decide to hire or re-appoint property management companies; review the annual management plan and community management services formulated by the property management company Major measures; Inspect and supervise the implementation of various management tasks and the implementation of rules and regulations.

The duties of the management committee include: inspecting and supervising the management of the property management company according to the opinions and requirements of the owner and the user; assisting the property management company to implement various management tasks; accepting the supervision of the owner and the user; Accept the supervision and guidance of the real estate administrative department, the relevant administrative departments and the people's government where the property is located.

Relationship between property management company and management committee

The management committee and the property management company are both real estate management agencies. The former are decision makers, clients, and inspection supervisors, and the latter are operators, trustees, and executive managers. In terms of status, the two are an equal relationship, which is a two-way contractual contract relationship. In law, the management committee has the freedom to entrust or not entrust a certain property management company, and the property management company also has the freedom to accept or not accept the entrustment; in organizational relations, there is no relationship between leadership and being led, management and being managed , But cooperative working relationships that do not interfere with each other's internal operations.

Property management company characteristics

Property management, as a labor-intensive and technical service-oriented service industry, is the product of deepening the reform of the housing system. It is a new model that combines housing with integrated community services to provide various services. It mainly provides various services. Get economic benefits. After more than 20 years of development, China's property management industry has continued to grow and develop. The types of properties it manages are becoming more and more complex, and the scope of business operations is becoming more and more extensive. In the mid-term and to the steady and rational later period, China's property management market is becoming more mature.

In fact, the property management industry is an emerging industry. Due to the need to improve the relevant national and local laws and regulations, the industry's behavior is out of standard. In addition, as a small profit industry, the industry has less mature models and experience, and different types of properties provide lessons learned Insufficient real estate management faces a lot of risks in the operation process. Many property management companies operate on thin ice and struggle to survive and develop. Especially newly-established property management companies often operate on a small scale, lack economic strength, and lack the ability to identify risk factors. As well as the awareness of anti-risk, the whole property management industry is weak in anti-risk and danger.