Property Management in India, a huge business opportunity missing in India !!!
Property management involves tenant management, landlord management, property maintenance, and a lot of other activities associated with these.
The current norm of property management in India: Real estate brokers are largely involved in finding a tenant for the rental properties. Tenant management and landlord management in India are largely matchmakings where Real estate brokers or agents help find the right property for the tenants and find the right tenants for the landlords. In this process, Real Estate agents charge brokerage fees and execute the rental or lease agreement (most do it). That's the end of their involvement.
Property Management doesn't end over there. Property management begins where Real estate agents step up in managing the rental properties throughout the rental cycle and deliver services to tenants and landlords to make sure property is maintained in good condition.
Landlords having rental properties in Bengaluru may be living in Hyderabad or vice versa. NRIs who have properties in India, don't just need tenants living in their properties, they also need someone who can look after the property in good condition and fetch optimum rental yield. Largely, such landlords rely on their relatives and friends living in the vicinity of the properties. Pushing friends and relatives for property management is an obligation, unpaid job and it won't fetch professional or timely services.
That's why property management is needed in India where Real estate agents step up themselves to manage the majority of the activities associated with tenant management, landlord management, and property maintenance. As per the 2011 census, there were over 5 crore households that were on rent, of which about 35-45% were not being rented as there was a lack of professional rental property management services in India. The situation hasn't changed much even in 2020.
It's time for Real estate agents to elevate the professionalism needed in rental property management space, grab the opportunities, and create a recurring stable revenue stream by delivering efficient and effective valuable services to landlords. There are simple structured processes that Real estate agents can follow to build a profit-making property management business.