Management of Real Estate Properties

In this articlr from Ebla Real Estate, we will talk about the management of real estate properties.

A property management company:

Undoubtedly, choosing a property management company or not is a difficult decision for many real estate investors. Some of them may not think of real estate investing without a property management company. However, others struggle to be free from the mentality of “do it yourself” that prevents them from achieving their goal of investing in the real estate sector. That’s why we can say that the pros of having a property management company outweigh the cons.

The reason behind not wanting to have a real estate property management company lies in the cost that the investor must pay for the property management service. However, the cost is not negative. On the contrary, it is an investment in itself, because the property management company will increase the chances of final profits.

It is worth noting that we strive in Ebla Group Real Estate to provide A highly professional property management service to meet the requirements of our clients in the real estate sector.

What is property management?

Property management is the process by which a third party is given responsibility for maintaining the current status of the property, managing it completely, supervising the real estate assets and communicating with the tenants.

And in case that the property is vacant, the task of the property manager is to get a tenant for the property constantly.

The property management company is concerned with each aspect of the property including, marketing, signing lease contracts, collecting rent and following up on the periodic maintenance of the property, which in turn works to extend the life of the property and maintain it in a way that ensures the continuity of the investment return of the property.

Do I need a property management company?

Of course, there are a lot of investors who prefer to work with a real estate property management company. However, there is no rule that says that anyone needs a property manager, even though property management companies have many advantages that enable them to manage the property professionally and safely.

If the number of the leased properties has increased and the investor is not close to his real estate assets.. It becomes necessary to have a property management company, which undertakes the routine maintenance of the property and follow-up of tenants in addition to management of the legal affairs of the property.

The property management company is not your employee. Therefore, it will save you the cost of hiring an employee to manage the property with a fixed salary and additional dues. However, you will need to pay a percentage ranging from 15% to 25% of the returns to the property management company.

It is the responsibility of the property management company to save the owners of the real estates the troubles that may prevent them from following up their properties and give them time to follow up on their business in other places.

What does a property management company offer?

When thinking about the percentage that the property management company will obtain that will reduce the final profits for the investor, who in turn wonders about the services that the property management company will provide in exchange for a percentage of the returns.

Here it is preferable to call it an investment and not a cost that may reduce profits, because property management is not easy, as some think.

The property management company’s mission is to achieve the best services in managing the real estate properties of the clients in the best way to reach their desired goals.

In addition to the periodic follow-up, which is represented by the following:

• Marketing and finding tenants/buyers.
• Drafting and signing lease contracts on behalf of real estate owners.
• Collecting rents.
• Maintaining real estate properties.
• Periodic maintenance and undertake the necessary repairs for the property.
• In addition to preparing and complying with budgets report.

Rent collection:

Rent collection is one of the most obvious tasks of the property manager. However, if that was all what property managers do, it will certainly be difficult to justify getting the percentage of revenue especially with the possibility of online payment. Furthermore, that does not mean that collecting rent is easy or possible by all means because the tenant may not be able to pay in these ways. In addition, the investing may be in the daily rent, which leads to the difficulty of the work of real estate managers, and here the property management company must follow up the property on a daily basis.

Property maintenance:

Dealing with tenant calls and maintenance requests is probably the biggest motive for real estate investors to contract with a property management company. The issue is not about maintenance because dealing with tenants is often the biggest challenge for investors. Perhaps their needs are not big or expensive but the time and the urgency of the tenant who may encounter a problem that needs quick reaction.. That may be on the weekend or in the middle of the night and many of these calls can be annoying to the landlord.

Therefore, the presence of a property management company that seeks to work for the benefits of the clients and meets their requirements, which leads to an increase in the income from the property and ensuring that the problems do not worsen.

Additionally, the property management company will regularly follow up the maintenance and ensure that the property is always ready for use.

Dealing with defaulters:

Sometimes the tenant may fail to pay and violate the lease contracts. Moreover, some may misuse the real estate assets from modification or use them for purposes other than those mentioned in the lease contracts. Here the property management company intervenes to resolve disputes directly with the tenants.

But in some cases, it may require filing a lawsuit and the property management company will handle this issue on behalf of the landlord, saving time and stress in these situations.

Also, having a property management company may lead to find better solutions compared to the landlord who may appear to be an easier target for tenants.

Marketing the property through the best means of advertising:

The property management company bears the cost of marketing, displaying units, selecting potential tenants, and supervising the process of moving and eviction.

At the same time providing a detailed report of everything that happens in the property is extremely important to preserve real estate assets and keep the investor fully aware of all details related to the property.

Thus, we talked about the management of real estate properties. Do not hesitate to contact Ebla Group Real Estate to manage real estate properties.