Let’s get started with the biggest myth. A real estate management company does more than just helping in buying and selling of properties. Second, there is a thin line between a real estate company and a real estate broker.
Before we get into the crux of what the role of a real estate management company is, let’s pay some heed to the numbers of the industry.
Facts & Figures of the real estate industry:
- Feb 2023 depicts a 48.8% surge for residential real estate.
- Indian investors are set to contribute about $ 4.2 billion in Dubai’s real estate in 2023.
- Dubai real estate space is expected to lead the global price chart this year.
- Some of the in-demand localities are likely to see a price jump of 59% in 2023.
What Is A Real Estate Management Company?
A real estate management company is ideally a third party offering a comprehensive reality based solution. The role of the management company would depend on the contract and client requirements. However, the company must be competent to take care of all operational tasks and charge a monthly or annual fee to do so. Appointing a real estate manager or management company is certainly beneficial for owners/investors; allowing them to focus all their efforts and energy on everything else.
Regardless of whether it’s one or more properties; a real estate management company is hired to manage all the daily operations.
Give this a thought- owning and taking care of properties is a full time job, isn’t it? A real estate management company is the solution to this! Especially for those property owners who are in the business purely for investment opportunities. It’s easy to hire a professional to handle the everyday management.
Reasons To Hire A Real Estate Management Company
- Real estate management companies are always up to date with legal obligations and industry standards. Being aligned with these guidelines is challenging without expert help. So, it would be wise to hire a professional to abide by all safety standards.
- The work doesn’t stop at just buying a property, an effective maintenance solution is pivotal.
- A rental management company makes the communication easy and smooth between two parties.
- Professionals know how to yield the maximum value from any property. So, that’s a great way of boosting the value of your property.
- Engage in a professional property manager; save time & money significantly.
- You can diversify your real estate portfolio seamlessly.
How Does A Real Estate Management Company Work?
The end goal of a real estate company is to lighten the load from an owner on a variety of tasks. The company takes on some crucial responsibilities by doing the following:
- Background checks of new tenants.
- Address problems whenever required.
- Simplify taxes significantly.
- Deal with default tenants.
- Keep an elaborate record of everything related to the property.
- Market the property.
- Drafting lease documents.
- Be a connection for rent collection.
- Handling disputes and evictions.
- Routine property inspection.
- Maintain a complete financial documentation of the property.
- Handling all the communication with the tenant.
When Should You Hire A Real Estate Management Company:
Although, hiring a real estate management company may come at a cost. Here are reasons why you shouldn’t think twice before doing it.
- When you own more than one property.
- When you live far away from your rental property.
- When you cannot devote too much time on handling or managing anything related to the property.
- When you can easily bear the cost of a real estate management company.
- When your property is a part of an affordable housing program.
- When your knowledge of the industry is limited.
- When you find the day-to-day operations of a property very taxing.
How Can You Benefit From Hiring A Real Estate Management Company?
With so many responsibilities comes a string of advantages. Here’s how you can benefit from hiring a real estate management company.
- A local real estate management company can help you increase profits largely by ensuring full vacancy throughout.
- Thanks to their service of thorough screening, you can benefit by having quality tenants.
- With access to in-house maintenance techs, investors can avail low maintenance costs.
- Real estate management companies help in tenant retention.
- Working with concerned professionals helps reduce liability.
As a real estate investor, striking the right balance of time, property management and cash flow simultaneously is the most important thing. Almost every decision related to the property can help save money in some way. And hiring an experienced team can offload responsibilities and deal with situations smartly. Though hiring a real estate company will come at a cost, the multiple advantages (monetary and non-monetary) can outweigh the investment remarkably.