Own a Property that is being managed? Urgently read this.

​Are you a Property Owner? This is a must-read for you to ensure you aren't being taken granted by a Property Management Company.
 
Essentially, Property Management Companies perform 2 duties:

1. Maintenance and management of your property Property Managers will ensure that your property is always spic and span. They will ensure that all utilities are paid on time and your property is being safeguarded.

2. Guarantee good returns of investment on your property Property Managers ensure that your property gives you a good return on your investment. Here they handle operations, maintenance, and administration of property rentals.
 
A good Property Manager will charge you on the basis of the service they provide. However, Property Managers bring their expertise in providing you with the second function which is to make sure that your property is not idle and it earns some income for you.
 
There are 3 models under which Property Managers or Property Management Companies work under:

1. Minimum Guarantee Model  

Here, the Property Management Companies assure you a minimum rent for your property.
 
Advantage:
You will get rent for your property even if your property is vacant.
 
Disadvantage:

• The Property Management Company will ideally ask you to sign a sublease agreement with them where they will acquire the power to sub-let your property to preferred tenants. Here you will lose complete control over your property.

 

• You would ideally get lower rent than the market value

 

• It is difficult to ensure monthly payments when your property is vacant, hence the chances of default are very high.

 
Benefit to Property Management Company:

• They will take a certain amount as Management Fee. It would be 1-month rent or 15 days rent based on the Company and specifics of the property.
• They will rent out your house at a higher value then the minimum guaranteed value and the difference is also taken by the company.

  2.  Commission on rent  

The Property Management Company takes a percentage of your monthly rent as management fees.
 
Advantage:

• You only pay management fees when your property is rented out.
• You will get the best possible rent in the market as the company’s incentive is directly proportional to your property rent.

         
          Disadvantage:

• You don't earn income until your property is rented out

 
Benefit to Property Management Company:

• They get a percentage of your monthly income.

 
3. Fixed Fees          

Here, you as a property owner need to pay the Property Management Company for their services of maintaining your property.
 
This ideally works only when you are not willing to let your vacant property on rent but just need someone to take care of your property in your absence.
 
This is an expense from your pocket while not receiving any income from your property.
  
In reality, a property management company uses either of the above models or a combination of 2 models. 

​Besides management fees, owners are required to pay the cost of utilities on actuals. For property repairs, you might have to pay a supervision fee along with the actual cost of repair.
 
Since there is no hard and fast rule on the charges, Property Management companies can also charge you for any other services they provide.
 
Now that you have a fair idea on what charges you might have to incur, it is also important for you to know a few key points that will help you shortlist a property management company that suits you.
 

1. Ensure you do not lose control over your property
2. Ensure you get a steady income, even if you don't monetise immediately. Slow and steady if definitely your guiding star here.
3. Ensure you get a detailed statement of expenses on your property.
4. For any repairs and maintenance work, the company should ideally give you an option of vendors to choose from so that you are aware of the market rate.

 
PropertyAngel is a property management company which follows the commission basis model.
 
This option provides the maximum benefit to you as a property owner and ensures complete transparency.
 
PropertyAngel does a leave and license agreement, which safeguards your rights as a property owner.
 
Services of PropertyAngel which will interest you:

• Keep Control – You choose your tenants. You control every penny spent.
• Only pay on Performance – You pay as you go and nothing upfront.
• No Hidden Charges – All charges are transparent. Even maintenance costs are standardized and shared with customers.
• Hassle-free – Complete hands-off experiences with a personalized support & field team
• Verified Tenants – Tenants placed only after a background verification & document check
• Detailed audits & reports – Get detailed reports for rent, expenses, Six Month Property check report, Inventory check
• Report, Tenant Move-in & Move out Reports, Agreement Renewal Reports.

 
To know more about PropertyAngel visit: https://www.propertyangel.in/ or call us at  91-80-47095974 / 91-7406484455


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