Whether you are a landlord, tenant or a home occupier without rent you need a property management company. You may ask “What do I need them for? after all I don’t own a property, I am not a landlord, I stay in my own house, they are just after my rent (money).” Have you for once thought of going for a medical check-up even though you are not down with an illness? Property management companies like doctors want to ensure that your property is well-managed point of the owner down to the very least of the user of the facility.
The following are the reasons why you need a property management company;
Good tenant Selection Process by the property management company
One of the reasons why property owners, as well as tenants, needs property management company is because of the way these companies select their tenants. They select tenants by considering the following;
- Tenant Occupation: the company will consider the type of work a tenant does before giving him or her a property. Tenants whose job cannot pay their rent are in mostly not given the property. This will ensure that the tenant will continue to pay his rent.
- Type of use: during selection, the company will decide whether to give a tenant the house based on the tenant want to use the house for. If the tenants use of the house will disturb other tenants, the property or the neighbourhood in terms of a nuisance (noise, danger, health problem) the tenant will not be given the property. Once this is considered, there will be peaceful coexistence between the tenants, the property as well will be in a good condition.
- History of previous tenancy: a good property management company runs a fair background check on a tenant for their previous tenancy, to check things such as the cause of relocation, relationship with other tenants and maintenance habits.
- To avoid any legal issues that may arise: A good property management company always knows how to avoid legal issues when the see one. These companies have legal advisers who are experienced in landlord and tenant matters. With the help of these advisers and their experience in the field, they can help to avoid legal issues that may arise as a result of rent recovery, property recovery, subletting of property.
Quick sourcing of tenants for quick re-occupation
These companies can help source (look) for the tenant to occupy a property quicker than the owners themselves because they have more networks. In fact, tenants feel more comfortable contacting these companies for the property instead of finding for themselves, because they believe these property management will give them the best available property based on their taste and budget. Also, they are sure their money is in safe hands
High Rent for Your Property
For landlords and property owners, one of the reasons why they need these services is because of the good rent the property will receive always. These companies know the rent for similar property in that location so will make sure the property is always in a good condition that will always command such high rent. Also, these companies know that their management fee is tied to this rent so the will do anything fair to both parties in other to collect the highest rent. This is not to say they are out to cheat tenants, because the tenants will always get the value for their money.
Proper maintenance of the property
It is nothing new to state that property management companies are responsible for the management of properties under their care. They property management companies makes sure the property in question is well maintained through “routine inspection”, prompt reaction to maintenance issues with a view to solving them, “schedule of condition” when the tenant is taking possession, “schedule of dilapidation” when the tenant is moving out, following up on both landlord and tenants so that both parties carry out their maintenance obligation as required.
Dealing with tenants on behalf the landlord
Landlord or property owners prefer to deal with property management companies to avoid dealing with tenants because of
- Busy schedule
- Proximity to the property
- Personal reasons
Tenants as well prefer to deal with these companies because they believe they are professionals who can handle conflicts better than landlords without taking sides.
Prompt collection and remittance of rent
Property management companies with a good tenant selection process don’t have issues collecting rent. These companies inform the tenants before the expiration of the tenancy through rent renewal letters 6 months and 3 months to expiration and follow up phone calls and email correspondence. These ensure the tenants are well informed and legal actions can be taken almost immediately in case of default. Once these rents are collected, the company’s remits to the landlord based on the existing agreement on rent remittance.
A good and robust tenancy agreement prepared by the property management company
The property management company with the advice of their lawyer prepare a good tenancy agreement that will ensure the landlord and the company will not be drawn into a long litigation process with the tenant if cases of rent recovery or recovery of property arise. A good tenancy agreement must contain the following;
- Express name of landlord and tenant
- Tenancy period (Starting & Ending)
- Service charge (percentage of rent or mode of determination)
- Obligation of landlord
- Obligation of tenants