Residential property management
Property management in residential rentals.
Real estate management is a fairly new service. Often, this concept means the management of commercial real estate – office buildings and retail premises. In these segments of the real estate market, the management service is a really necessary part of the business. The issue of using a property management service in the case of residential property rental may seem debatable at first glance, and I propose in this article to consider the feasibility and profitability of using a residential property management service.
First of all, consider the widespread myth that renting an apartment does not require much time from the owner. At first glance, this is really so – it would seem – he took the monthly rent and that’s it. However, if we look closer, we get the following picture:
– in addition to the rent itself, it is necessary to organize the accounting of meter readings and the payment of utilities, in addition, utilities may include additional services: the Internet, cable or satellite TV, so it will be necessary to establish contact with the services providing these services and control them provision;
– additional services often include the provision of a cleaning service, for the establishment of which it is necessary to organize maids and control the quality of their work;
– an important point is the organization of financial flows management and interaction with the tax service and the pension fund; in this case, both direct services and the necessary information support are needed;
– in case of technical malfunctions of household appliances, it is required to call the master and repair the equipment;
– in case of water leaks, electrical faults and minor breakdowns, the participation of craftsmen specialized in different fields is necessary;
The list, of course, does not end there, since leasing, like any venture business, is associated with various risks.
On the other hand, when concluding a management contract, which you can find on our website, for example, your costs for a professional manager will be up to 10% of the monthly rent. Whether it’s a lot or not is up to you. If you have free time and connections, you may be able to manage on your own, but here it is worth understanding whether it will be cost-effective for you, whether it will be worth your time and effort, or whether you can effectively focus on your type of activity by transferring services to management in the hands of professionals.To provide management services, the Agency maintains a staff of foremen, maids, an accountant and a manager responsible for organizing the management process. The owner is provided with monthly reports, of course, with the transfer of rent.
In order to fully reveal the topic of residential real estate management, it is necessary to reveal the topic of profitability. The fact is that often the owners incorrectly position their apartments, referring to the matter intuitively. This results in improper repairs, overpriced or underpriced, inadequate organization of the tax regime, and most importantly – if you do not start cooperation with the Agency even BEFORE buying a property – in the wrong choice of an apartment – its location and characteristics. Many people think that renting is easy. Yes, I agree that this is possible and does not require a higher economic education, however, with a competent approach, you can get a very high economic result and receive an increase in the value of the object itself in accordance with market development.
I hope I managed to cover the topic of real estate management in general terms. Once again, I would like to note that turning to professionals will give you high profitability and make the process interesting and enjoyable.