Most property owners today prefer to hire the services of a professional property management firm to manage the day to day operations and other related issues. The firm, in exchange of a fee renders a number of services to the owners.
Benefits of dealing with property management firms
The first advantage of dealing with a professional property management company is that the representatives make efforts to communicate with the owner in order to understand the needs and aspirations. It is on the basis of this communication that an agreement is made to suit the requirements of the owner.
The major work that the property management firm undertakes is to find suitable tenants. This task may involve the following aspects:
- Conducting an inspection to understand the features of the property.
- Uploading photographs and advertisement of the property available for rent on various real estate websites.
- Placing advertisements in newspapers.
- Organizing property viewings for potential tenants.
- Conducting a background check of potential tenants to verify their references, employment status and income.
- Renting out the property after taking approval of the owner regarding the rent amount.
- Securing a written contract with the tenant.
Once the property is rented out, the property management firm bears the responsibility of rent collection from the tenant. The services offered in this regard include:
- Regular and on time rent collection to avoid arrears.
- Follow up on late payment issues.
- Handling termination issues, with the approval of the property owner.
- In case of termination, keeping the property owner informed about the procedure.
- Providing an annual summary of the rent collected to the owner of the property.
The property management firms usually conduct an inspection of the property in three stages. The first inspection is conducted prior to renting out the property, in order to ascertain its condition. A property condition report may be prepared on the basis of the inspection. The second set of inspection is conducted at regular intervals while the property is occupied and the owner is informed about any repairs or maintenance works, which may be required.
The third inspection is conducted when the tenant vacates the property to ensure that the condition of the property at that time matches with the original report. Click here for more information about the other aspects involved.
The management firm bears the responsibility to undertake repairs, which may be required in the property after taking the owner’s approval. The urgent repair requests by tenants are immediately attended.
Tenancy Renewals and Rent Review
The property management firm ensures that the tenancy agreement is reviewed before its expiry. The renewal is done based on current market conditions. The firm also renews the rent in order to ensure maximum income to the owner.
Renting out property involves a number of aspects. Hence, it is advisable for owners to seek the services of a property management firm for handling the day to day operations.