Property Management? What are the things to consider before starting Property Management?
Property management is all about looking after or overseeing the rental properties. Rental properties could be residential (households, apartments, community buildings, student accommodations), commercial (retail shops, warehouses, industrial buildings), land, shopping complexes, etc. The responsibilities of a property manager are various, the two most important are to make sure the rental properties are maintained in good condition and the rental yield is optimum. We will discuss more on responsibilities and processes in a different article that will cover specific things about Tenant management and Landlord management.
There are certain landlords who look after their own rental properties and while there are landlords who live away or who don't have enough time to manage their rental properties. Such landlords appoint professional property managers to carry out all or partial rental management activities like advertising, showing the property to potential tenants, finalizing tenants after verifying the background, monthly rental collections and accounting, property maintenance services, timely renewals, managing move-in, and move-out, etc. Property management appears to be simple but is very complex and intensive if not done with the right processes and tools in place. Larger the rental portfolio, better the revenues, but poses more the complexities.
In developed Real estate markets, Real estate agents provide property management services as an extension to their customer base created out of buying, selling, or renting transactions. Property management business provides stable recurring revenue that can usually cover the operational costs of the entire business including sales. With the increased demand for property management services, exclusive property management companies have evolved that are highly specialized and focused on delivering property management services only. The emerging markets like India, South America, few of the African and other Asian countries have started adopting these models.
When you are operating in Real estate space, it is always overwhelming as people approach you for a broader range of services. If you have been into buying and selling for a long time, your existing customers may ask for rental and property management services. So do you want to go for it? Are you ready for it?. In this case you need to ask yourselves whether you have the right skills, resources, best practice-driven tools that will enable you to deliver the best property management services economically? Your existing brand image or reputation could be at stake if it is not thought through.
We at Property360Degree help Property Management companies to deliver high-quality property management services to their clients (landlords & tenants). We provide a cost and operational efficient model that can make property management companies profitable in a short span of time through our digital technologies and property management consulting services.