You’re thinking of investing, but you don’t know where to start. Somewhere, somehow you found out about property management companies, and now you wonder – do you need one? What do property management companies do, anyway?
In a nutshell, sometimes landlords handover certain property-related responsibilities to third parties, i.e. property management companies or agents. It is then their duty to perform those duties diligently and efficiently, in exchange for a management fee.
So, what exactly do these duties entail?
Let’s take a look.
What Do Property Management Companies Do?
After a property management company has been entrusted with a certain property, they become responsible for performing tasks that are associated with property ownership. Here’s what these duties normally include:
- Overseeing daily operations associated with the property
- Address any questions a tenant may have
- General maintenance of the property
- Screening tenants before leasing
- Set up and administer service charges including budgeting and year-end accounting
- Collecting rent, utilities and other relevant payments from tenants
- Carrying out background checks, whenever necessary
- Ensuring consistent rentals in case of vacancies
- Fulfilling any legal obligations towards tenants
- Conducting regular inspections and repairs
- Communicating and dealing with defaulting tenants
While the exact responsibilities may vary from company to company, generally, this is what you can expect. Since it’s a contractual relationship, you can always communicate your specific interests to the company. Additionally, these duties will also depend on the lease terms/provisions.
The best property management companies are always open to negotiating contracts and will ensure that your needs are taken care of.
When Should You Hire A Property Management Company?
There are plenty of reasons to hire a company to manage your property. Here are a few instances where appointing one can be beneficial to your real estate investment:
- You want to invest in multiple properties
- You are not in close proximity to your property
- Your busy schedule limits your ability to manage the property yourself
- You have trouble finding tenants for your property
While the company will charge you a percentage of the rent, it definitely takes the burden of management and administration off your shoulders. Often, however, the costs, of employing an agent to administer service charges and deal with maintenance etc are recoverable from tenants via the service charge so it needn’t cost a Landlord as much as they might think. Tenants should also be happier, knowing that the service charge is being administered properly and that funds held on account are kept in designated Client Accounts which are ringfenced and protected.
The company will also generally assign your property to a property managing agent who you can connect with any time you have a question or concern regarding your property. This ensures that you maintain full autonomy over important decisions. If you’re dissatisfied with the way things are being run, be sure to communicate your grievances. A good property managing agent will always prioritize your needs.
Managing agents should belong to a reputable professional body – Vickery Holman is regulated by the RICS (Royal Institution of Chartered Surveyors) – do look out for the regulated by RICS logo.
Finding The Right Property Managing Agent
Now that you know what property management companies do, it’s time to find yourself, a good agent.
Here’s where we can help.
With over 40 experienced surveyors and local experts across all our locations, we pride ourselves in providing an exceptional property management service to all our clients.
Whether it’s advice on your own property or a new purchase send us a message here and we’ll get back to you as soon as we can!
