Rental agents and property management companies are, of course, the go-to experts when investing in property. However, buyers are often confused about the distinction between the two. While they both play a vital role in locating and maximising your investment, there are fundamental differences between them and how they can help you. Let's look at the difference between rental agents and property managers.
To sum it up, a rental agent, also known as a leasing agent and buyer agent, shows prospective renters the space that could become their new home. In contrast, a property manager is concerned with what happens after the lease is signed.
A property manager is concerned with customer service and ensuring that renters are happy and safe. On the contrary, a rental agent's priority is getting a tenant into a property as soon as possible.
A leasing agent wants to make sales, but a property manager wants the tenant to be satisfied and stay on the property for the long term.
If you are someone who wants to earn money from the rental property but are terrified of collecting rent or receiving calls from tenants about burst pipes? A property manager may be well worth the money.
Also, a property manager can serve as a leasing or rental agent. On the other hand, a rental agent is only concerned with placing tenants.
While some property managers excel at leasing, others focus on building rapport with tenants and resolving any issue as soon as possible.
The truth is, property management isn't a charming career. Tenants can be hard to manage, landlord-tenant laws can be complicated, and property maintenance can be stressful. Having someone handle those issues for you provides you with peace of mind.
How much does a property manager charge?
Most property managers or property management companies charge one month's rent to find a tenant and then charge a monthly management fee. That is a percentage of the rent or a flat fee per unit. The charges can vary greatly depending on the state of the housing market. Generally, management fees range from 8% to 12% of the monthly rent. They may, however, offer a discount if a client brings multiple rental units.
Many property managers can also charge a lease renewal fee of up to 50% of one month's rent to cover the paperwork involved in preparing a new lease and other administrative charges.
How to find the best property manager?
To start, you want a property manager who understands your requirements, particularly how involved you want to be.
Some property managers will involve the owner in many decisions, while others will not. You may choose to be a more passive owner or prefer to be involved in decision-making. It all depends on your search criteria.
You should also look for a property manager or property management company having previous experience managing the type of property you own. Renting an apartment is more challenging than renting a house.
One way to find property managers in your area is by searching "property management companies in Bangalore". We recommend you contact a few property management companies before deciding on one.
To find a reputable property manager, research by contacting several of the company's current clients for feedback. Don't simply choose the cheapest option.
What questions should you ask a potential property manager?
Aside from the basics—how much do you charge, what services do you offer—do your homework by asking potential property managers the following questions:
How do you handle a tenant's emergency? Some will hire a third party to manage these issues, while others may deal with them in-house (the latter is better).
How many home visits do you make each year? Many property managers will claim to make home visits regularly, but this may not be the case. However, you can ensure how many homes visits you want the company to perform each year through the contract.
Why choose PropertyAngel as your property management company?
PropertyAngel Management Pvt. Ltd., or simply PropertyAngel, is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based company providing professional property management for villas, individual apartments, and houses.
We are open and honest about everything. For instance, our standards and SLAs define when a specific transfer would happen, how much and what the tenant or landlord will pay for, etc.
Besides, we have a customer presence in 95 countries, manage over 1.5 million square feet, and have a 100% on-time rent distribution record since November 2014.
The Bottom Line
Property managers can be helpful to real estate investors who aren't close to their properties or don't have the time to manage them. However, their services are not free and may not be appropriate for all real estate investors.
Consider your financial and personal needs and the needs of your property before deciding whether you would be comfortable giving up some control of the investment to a third party.