What do you mean by property management?
It is basically the management and maintenance of the property, be it a constructed one (a house or a flat) or an empty plot. Property management not only involves maintaining the property and the upkeep of the grounds but may also include finding tenants, collecting monthly rent payments, etc. Some property management agencies also handle complete apartment complexes.
What are the services that come under the property management?
The plenty of services offered by companies can be classified into four categories:
- Marketing and Budgeting – Real estate management concerns the understanding of operating expenses and budgeting. The property management company may advise marketing programs, special promotions and other advertising strategies in order to maximize occupancy and rental income, and give regular financial reports to the property owner. Certain property management firms may even undertake specialized tasks such as understanding financial statements, income taxes, profit and loss and budgeting.
- Property Monitoring – As is common, particularly in big cities, an empty home attracts miscreants who squat on property that is unwatched. Even well-preserved properties are under threat. While it may not be easy to continually visit your property (especially if the owner lives outside the city), property monitoring services can assist you in dealing with such situations. These services are not limited to:
i. Periodic visits, geo-tagging, inspections, ad hoc visits etc. to the property. This ensures that the property’s maintenance is taken care of and miscreants are kept at bay. Moreover, these services also ensure that specific valuables within the property are monitored.
ii. In the eventuality that miscreants do enter, it becomes the responsibility of the property management service to ensure that they’re evicted by legal means.
iii. Finally, warning signs are placed; which ensure that in case misdeeds occur, they can be implicated in a court of law.
- Tenant Management – Every landowner dream of getting a good tenant. real estate management companies work hard towards getting the right tenant and are the mediators between the tenant and the landlord. The tenant’s activities are monitored as per the lease requirements, and the rent is collected on time by the Property Manager. The unpleasant task of eviction for violations or non-payment of rent is also a part of this function.
- Facility Management – Property management is also physical management of the structure and outdoor parts such as landscaping, plumbing, roof, walls, electrical, appliances, etc. The property manager must maintain relationships with contractors and repair companies, budget these expenditures, and monitor the quality of all repairs and maintenance. It is necessary for tenant retention to have well-maintained properties.
What to see for in a property management firm?
Your property is a very valuable investment, and it is always advised to do some research before hiring a property management company.
Checklist before you hire a Property Management Company for your property in India
- Consider how professional the company is?
- Do they seem trustworthy and honest?
- How will they handle the situations where tenants don’t pay?
- Do they genuinely look concerned and willing to take care of the property and look after it? When communicating with a property firm, be sure to note the quality of their customer service. This is a crucial aspect since the landowner, as well as the tenants, will be dealing with the company regularly.
- Ask about the company’s previous experience and expertise.
Having a good property management firm on your side goes a long way in ensuring easy, profitable and stress-free investing. It can bring you hassle-free rentals and maintenance while optimising your cash flow and return on investment (ROI).