How to Manage the Property Efficiently?
When it comes to the decision on how to use the assets with the highest benefits and gains the landlords seek effective property management solutions. The common questions causing difficulties are the following:
- whether it is worth to cooperate with a property manager or the company for management;
- which type of rent to use: long-term or short-term;
- how to protect and maintain assets during operations;
- how to get the highest gains and find conscientious tenants;
- how many efforts and time does the management process take;
- how to keep the business legitimate, correctly account for operations, and pay taxes;
- many others.
To summarize, to get the maximum gain in real estate management way the owner should build the processes aimed to keep assets in good condition, ensure the proper control over them, manage financial and legal tasks, and operate with full capacity.
Can the Landlord Manage Property by Himself?
The most obvious answer is yes, of course. Nevertheless, if the essential aim is to increase gains with minimum efforts the proprietor should consider several factors before taking the responsibility for property management on his own.
How Many Objects Will be Included in Real Estate Management?
There’re certain difficulties when it comes down to the complex process of real property management even when it comes to only one subject of the lease. Too many factors should be considered at the same and respective expertise is required. Although these difficulties appear not so frequently, thus theoretically can be handled by the owner. Nevertheless, nobody is secured from Force Majeure, which is easily resolved by experts but may require extreme effort and time from the owner.
When it comes to the proprietors, who own several objects of different types, including residential and commercial property for rent, the third-party experience is highly helpful. First of all, because of the market knowledge and expertise allowing to utilize property with the maximum number of benefits and the highest gains. The second reason is the essential management skill allowing building the abovementioned process of maintenance, control, operations, and accounting aiming to avoid problems and increase efficiency.
How Much Time Does the Landlord Have for Property Management?
The cases when the lease of property is the only source of income are rare. The owners strive to dedicate their time to either the main occupancy they have or to occupancy allowing them to multiply the number of leasing objects. Even in those rare cases when a proprietor’s budget is based on income from rent, the majority of them prefer to spend the time with families and for hobbies to handling significant routine issues related to the property on a daily basis. This is why the companies offering services in real estate management are so demanded. Anyway, the option to manage property business personally by owner is available in case he has a lot of free time and desire.
When the Decision on Hiring of the Company is Negative
In case the proprietor decides to lead the effective lease process by himself the following major tasks should be performed:
- To conduct deep market research in order to identify the rental rate;
- Place rental offers in different sources with representative photos, description of benefits, and recommendations, if applicable;
- Prepare the property for tenants, performing necessary maintenance works, cleaning, and recording;
- Conclude agreements with the insurance company, local service companies, like plumbing, repairing, and so on, to be able to handle emergencies in the most effective way;
- Develop and follow the maintenance plan, create a special budget line for it to keep the property in a good condition;
- Be attentive to tenants screening and interviewing, preparing the lease agreement, which will describe conditions on move-in, move-out, payment terms, responsibilities, and the way to resolve disputes;
- Ensure accounting and tax is in line with legislation.
What Are the Benefits Brought By Real Property Management Companies?
Additionally, the decision on hiring a company to professionally manage the property lease process is supported by the following benefits:
- The assets are generating passive income which doesn’t require any participation from the owner’s side, making him completely free for other tasks and occupancies;
- The contract concluded with the companies strictly defines roles and responsibilities, so in case something will go wrong the owner can demand compensation or another penalty;
- Professional team provided by real estate managing companies has deep expertise in any type of possible operations, like:
- short term or long term rent of townhouses, apartments, condos;
- handling commercial property for rent;
- maintenance and keeping the property in a good condition;
- optimal pricing and search of tenants;
- debt collection, accounting and tax-paying, legal support of deals and interests protection;
- supporting tenants move in and move out process, and so on;
- Cooperating with companies allows to avoid responsibilities as an employer, as it could be in the case of hiring the property manager;
- Emergent repairs and accident handling is totally under the responsibility of the hired company.
Hiring a Real Property Management Firm
When the decision on transferring property management responsibilities to the respective service company the question of how to choose the right, professional, and reputable company appears. The most effective and simple way to do this will include the following steps:
- visit the sites of property management companies associations, like the National Association of Residential Property Management or the Institute of Real Estate Management. They allow filtering any location and type of property to be managed and find a reputable company with strong ethical principles. Additionally, the membership at such associations evidences the licensing and deep expertise, which is a must-have for any hiring party.
- collect feedback and reviews on the chosen company from friends, relatives, and independent sources, to know whether it worth to trust the firm and whether any negative experience of cooperation with it exists;
- visit the chosen company and get an exhaustive consultation to conclude on whether it can satisfy all expected needs and whether the client-service is on a high level.
Several Leading Representatives
A quick search on the Internet allows the following 3 giants recognized as top service companies in the field of commercial property management to be considered by potential clients in 2020:
- CBRE Group Inc.;
- Colliers International;
- Jones Lang LaSalle;
And the following ones for real estate management:
- Greystar Real Estate Partners;
- Lincoln Property Company;
Deciding on how to manage the assets the most effectively the option to hire a property management company is the most valuable. It allows to save time, handle multiple tasks, and keep the business legitimate and transparent with the highest financial indicators.