What is Property Management, when and why try it
Giving a property for rent it doesn’t mean only finding the right tenant and collecting rent. This process also implies advertising the property, writing the renting contract and registers it to Finance, apartment’s maintenance in case of flaws, assurance for bills payments, responding to tenant calls, organizing/supervising the moving process, etc.
Some of the owners consider that the most logical solution is to draw upon the experience of a property management company for a close overlook. On the other hand, there are owners that chose to handle by their own all that apartment management involves.
To understand the utility of calling this kind of firms, it is important to clarify what it can offer and when this service is vital.
What Property Management means?
This domain involves managing a property by a third – specialized firms. These are directly handling with the relation with tenants so the owners save time, with property advertising, conceiving the necessary renting documents, collecting rent, maintenance or tenants demands. Furthermore, these kinds of companies contribute through its know-how and experience in property management, so the profit of the investment made in the apartment to be maximized.
If the owners waver between calling a property management firm and deal with it by themselves, they should consider some factors involved in making the right decision for their own situation.
When it fits calling the property management service?
- If you belong more than one property. The many properties are given for rent, the gainful is for owner to call a management company for its services because these will save time and money.
- The owners don’t live in the proximity of their property. In this situation, hiring a property management firm may be a smart move in solving urgent issues that they can’t handle from distance.
- The property is an investment. Owners may consider their property a simple investment and they avoid the involvement. A property management firm solves any problem that may occur in case of flaws or apartment utilities.
- Property management isn’t the owner’s main job. Time is limited, true fact for owners too. Since this activity doesn’t represent a full-time job for the owner, he won’t always find the time to maintain the apartment. Hiring a managing company is a smart investment if, in future, the owner plans to extend the property portfolio, to administrate them or organize and finance a series of renovation to maximize his profit.
- The owners don’t want to become employers. Hiring a resident or a personal manager which can help them in all what property management implies, involves salaries, taxes, many demands and legal consideration. But, because a management property company is an independent contractor, you can avoid further complications that an employer status may bring.
- Owners don’t want to establish a connection with tenants, especially with foreigners. Networking with tenants need time, routine rides to the property and effort in fulfilling all tenants’ needs. As regards the situation when the property is rented by foreigners, all the aspects may be a lot complicated. In this case, the property management company liaise the relations and transforms the renting process in an easy one.
When the property management service is not needed?
- The owners have one apartment and they rent it partially. When a person belong one studio or apartment and there is rented only one room or two, hiring a property management company it doesn’t fit.
- The property is occupied by a close person. There are situations when the apartment is used by a friend or relative. Networking with these persons is informal, based on friendship and it’s not a difficult obligation to fulfill. So, the owner negotiates all renting conditions and costs. That’s why a management company won’t find its place here.
- The apartment is in the proximity of the owner’s house. If the rented property is in the same building or neighborhood with the owner’s home, managing it by the owner can be made much more easy and efficient.
- The owner wants to have financial control. If the owner is used to pay the apartment’s bills in person and he feels confortable only when the payments are made by him, regardless of the additional effort and stress, the property management services aren’t appropriate here.
- Experience and availability in renting activities. Since he have experience in this domain, the owner may already have the necessary documents for renting, the appropriate partnerships with contractors and the means for promoting the apartment to a quick occupancy. Moreover, if he has spare time, either he has a part-time job or he’s retired, he can be informed about all the payments, handling maintenance issues or inspect regularly the location.