A Guide to the Different Types of Property Management
Not All Property Management is the Same
Before asking what a property manager does, we need to clarify what kind of property management we are talking about. With special-purpose property management, for example, a property manager may be exceedingly involved with the property and its activities. This person may be an employee or something very close to it, and they may work with you and the property on a daily basis. Conversely, a property manager of single-family dwellings may not have contact with you beyond the initial meeting and monthly reporting, and the management requirements may be minimal.
Understanding the different types of property management can help to select the best manager for your needs. The different types are:
Residential Rental Management
Within the world of residential rental management, there are two primary types to consider: long-term and short-term.
Long-Term Rental Management
Long-term residential rental management covers a number of types of properties, including apartments, multiplexes, and single-family dwellings. Between these types of properties, their needs are the same within long-term rental management.
Long-term rentals require greater tenant screening than short-term rentals. Background checks, income verification, and checking credit and references are a major component of long-term rentals that you don't deal with in other rental types. Once a long-term renter is placed, in an ideal scenario there is very little work left to do. If you can do a great job placing a great renter, long-term rentals are an easy ride until the end of the lease.
Short-Term Rental Management
Vacation rentals and other short-term properties have a different set of needs than the long-term rentals. Tenants aren't vetted as much, if at all, since they are renting under any lease or other agreement. Guests stay for shorter periods, often booking through platforms like AirBnB, and so their needs and the property's demands are entirely different.
Short-term rentals tend to deal with higher guest complaints, sometimes over petty things, as well as more maintenance needs. There's also the regular cleanings after every guest that has to be coordinated and kept up with. This means that the property manager has to be more readily available and actively managing the property than with long-term ones.
Commercial Property Management
Managing commercial properties comes with its own unique set of difficulties. Commercial space is possibly one of the easiest to deal with once you have it rented, but getting it rented can be challenging. Marketing and attracting businesses into your space is difficult, especially when the economy is struggling. Once a business moves in, it tends to stay for awhile. If it becomes an issues, the eviction process is simpler than with residential properties.
A property manager with deep-rooted local connections with businesses, chambers of commerce, and the Better Business Bureau are perfect fits for handling commercial properties.
Industrial Property Management
Much like commercial properties, the active management of an industrial complex requires much less work on a day-to-day basis than residential rentals. However, securing a tenant for an industrial property may be the most difficult. Local connections can help, but when it comes to industrial properties it requires an expert capable of attracting businesses from other areas to come in and consider your location. It's a specialty rental type that takes a specialty property manager to secure and retain a tenant.
Special-Purpose Property Management
Special-purpose facilities are often seeking one-time use tenants. This often involves being connected with event planners or yourself being capable of coordinating, at least to a certain extent, setup and other items related to one-day events. For larger facilities and substantial events, this can require coordination on that next level, including working with local officials for parking and traffic needs.
What Management Type Does Southern Bay Offer?
At Southern Bay Realty, we offer long-term property management. This can be residential or commercial property management, but always with a long-term lease. Specifically, we don't manage vacation rentals or any other short-term leasing arrangements. Underneath this umbrella our property managers handle the following types of properties:
- Single-family dwellings
- Multi-family units
- Condominiums & apartments
- Manufactured homes
- Retail & other office property
Want to Speak with a Property Manager?
If you still have questions, our property management experts are standing by to answer them. Consults are completely free, so don't wait. Give us a call today and we'll show you why we're your best option for everything related to rental management.
Frequently Asked Questions
- How do I decide which management type is best when I own mixed-property types (for example, a single-family home plus a small commercial unit) in the same area?
- If I expect to scale up my portfolio from residential to include short-term/ vacation rentals or special-purpose assets, how should that influence the management type I choose now?
- How do the risks, regulatory burdens and vendor/maintenance demands differ between property-management types—and what should I ask a manager to demonstrate prior to hiring them?
Question: How do I decide which management type is best when I own mixed-property types (for example, a single-family home plus a small commercial unit) in the same area?
Answer: The blog outlines major categories like residential, commercial, industrial and special-purpose. If you’re an investor owning multiple types of properties, you might ask: Should I work with one manager who handles all types, or engage specialist managers for each asset class? For example: a manager experienced in long-term residential may not have the marketing network or lease expertise for commercial spaces. Balancing convenience versus specialist experience becomes key. You’ll want to compare: coordination costs, manager’s expertise in each type, how they report to you, and whether their fee structure reflects managing multiple property types.
Question: If I expect to scale up my portfolio from residential to include short-term/ vacation rentals or special-purpose assets, how should that influence the management type I choose now?
Answer: Even though the blog mentions short-term/long-term residential under “residential” and identifies special-purpose as separate, it doesn’t fully explore the transitional aspect. If you currently own long-term residential rentals but plan to expand into vacation rentals or event-space assets (special-purpose), you should ask: Does my current manager have the capacity or systems needed for that scale and complexity? Do they know cleaning turnovers, guest screening, dynamic pricing (for short-term), or event coordination (for special-purpose)? Choosing a manager who can evolve with your portfolio—or planning to switch when you scale—will prevent disruption later.
Question: How do the risks, regulatory burdens and vendor/maintenance demands differ between property-management types—and what should I ask a manager to demonstrate prior to hiring them?
Answer: The blog categorizes types and gives high-level differences; however investors may wonder: what practical differences do I face? For example: Industrial properties may require specialised equipment maintenance; special-purpose venues may demand event-licensing, traffic/parking coordination and unique insurance; commercial units may deal with tenant fit-outs or common-area maintenance (CAM) reconciliations. Ask your manager: What types of properties have they handled recently? Can they provide case studies or references in the same type as yours? What vendor network do they have (industrial vs residential vs commercial)? What does their incident or emergency plan look like for my property type? Ensuring they’re fully equipped for your property’s category helps mitigate surprises.
