Regardless of if you are a private landlord or the member of a committee responsible for an entire condominium or village, you will be only too aware of the various problems that you can encounter. Both housing management and condominium management can throw up numerous challenges which can be costly financially, emotionally as well as in terms of time. Many of the problems you will never have experienced before, and knowing how to handle them may be challenging. This is when a professional property management company will prove to be invaluable.
A professional property management company, which focuses solely on property management services, will have the necessary support networks available to them when things go wrong. They will have experience along with marketing and other professional skills and people known to them at their fingertips. It will mean that problems get resolved quickly and efficiently, but there are, of course, many other benefits. Here are just ten benefits of using a company offering property management services.
1. Established contacts
A reputable property management company will have negotiated favourable contracts with a variety of different parties which quickly and efficiently carry out any repairs. It will save you from taking a chance with an unknown company as they will already be tried and trusted. A property management services company will use this company on a regular basis and, as such, have negotiated rates which are often several per cent below the market value. It is something that juristic committees can benefit from as well as private landlords.
2. Knowledge of true market values
From a private landlord’s point of view, knowing how much they can realistically expect to achieve in terms of rental yields can cause endless headaches. Even comparing one property to something similar can prove to be misleading as the terms and small print of the contract may be significantly different. A professional housing management or condominium management company will know what your unit or house is worth in today’s market.
A common error that many property owners make is that they overestimate how much rent they can obtain and then are confused why they get very few viewings. Pricing your property out of the market is dangerous but common in Bangkok. Sadly, many landlords are tempted to increase the rent during times of austerity to reduce their potential losses, but this worsens the problem.
While setting rents too low does have many drawbacks, the consequences are less damaging, but obviously, everyone wants their condo or house to achieve the rental yields that it deserves. Competitively pricing a property is always the key, and a professional management company will have data and statistic available to back up their suggestions.
3. Advertising and marketing skills
Although this is something more closely associated with private landlords, it can be equally as crucial for juristic offices that may manage individual units on behalf of clients or have units or houses which haven’t yet been sold. As we are now in a digital era, knowing where to place ads and market your property is essential. There are countless portals available, many of which are excellent but there are just as many which are poor. Having some insight into where and how to market a property is essential.
As we mentioned at the beginning, having the right contacts is the key, and this is applicable to marketing. Also, if you require any design work for the property, they will always be able to recommend someone or be able to do the work themselves. Once again, this will give you a competitive advantage as you will get your unit, house, condominium or village in front of more people.
4. Advice on tenants and residents
As a private lessor, you will know that finding any tenant, let alone the right tenant can be tough. Juristic management teams will also be familiar with the many problems that residents, including property owners, can cause. A professional property management team will be able to help with this from both an individual’s and a juristic committee’s perspective as they will have the necessary knowledge and experience to address any problems.
For the individual, they will not only market your property, but they will also arrange viewings, conduct thorough background checks on potential tenants as well as formulate legally binding contracts. These contracts will protect both lessor and lessee, and the added professionalism will give potential tenants that extra confidence to select your property as opposed to an alternative.
From a juristic committee’s point of view, they will offer the same benefits as for the individual while also having the experience and knowledge of how to deal with troublesome residents professionally. They will ensure that maintenance fees are paid on time, that residents abide by the rules and that no one receives preferential or adverse treatment. It will make the property more desirable and attract better quality tenants.
5. Higher rates of occupancy
Another of the benefits which arguably applies more to individuals rather than groups, but a property management services company will be able to help you achieve higher occupancy rates which will increase your ROI. It is a familiar problem; a seemingly satisfy tenant doesn’t renew their contract, perhaps because it was left too late or they felt they were taken for granted. Professional management companies will have more contact with lessees which will reduce the chances of this occurring.
However, should they decide to leave, the management company will already be proactively looking to find alternative options. The intention is that this will reduce the time your property is left empty. Juristic committees will benefit from higher occupancy rates (in terms of units sold) as this will bring more revenue into the property through maintenance fees and the sinking fund. This will result in better facilities for all residents.
6. Accounting and administration
As a village, condominium or individual unit is essentially a business; it is critical that correct accounting and reporting is conducted. It is necessary from both a legal perspective and also for the proper management of the company. Reports and accounts should always be made available to the committee and indeed, any owners on request. Again, this is an aspect of the business that they will have extensive knowledge and will understand what is not only what is legally required but expected.
When it comes to the benefits for a landlord, a property management company will ensure that rents are paid in full and on time. Unfortunately, it is a common problem in Bangkok for tenants to miss or be late with rental payments. Rent collection can be time-consuming and stressful, not to mention the inevitable financial impact. A trusted third-party property management company will ensure that rents are made on time with clear rules and implications for those that fail to comply.
7. Prompt and high-quality repairs carried out
One of the major concerns for any juristic office is when significant repairs are required. For instance, the swimming pool pump breaks down, or there is a problem with the roof. These are naturally problems that need addressing quickly, but knowing who to contact, a company that will do a high-quality job at a reasonable price can take time. Through their network of contacts, a professional management company will be able to arrange for the repairs to be promptly completed and to the required standard.
Professional condo management companies will also ensure that routine maintenance is carried out, which will reduce the chances of these types of events occurring. Unfortunately, inexperienced condo managers may overlook something crucial points and not have the correct procedures in place to ensure the smooth running of the building.
8. All legal and tax issues handled
It should go without saying, but all legal and tax rules must be complied with. These are statutory requirements, and failure to complete with what is necessary may result in litigation. It is another area where inexperienced managers may overlook something or not have documented procedures about how the issue should be addressed. Although it can be “nice” to employ a well-meaning person, negligence is in many cases a crime and will be treated as such.
9. Reduce stress
Inexperienced juristic team and private landlords can experience high levels of stress if they start to feel like things are getting out of control. Professional management teams will take away that stress, and they will have tried and trusted ways in which they deal with matters. Their teams will have received comprehensive training, something that is rarely offered by juristic committees. As with most things in life, it is best to leave things you don’t understand to the experts.
Reputable property management companies bring an element of professionalism to your business. The whole operation will run far smoother, and it will be noticeable. Everyone will understand their role, there will be ready-made replacements on hand if required, and the support network of the parent company brings the reassurances that you need.
If you are looking for a professional property management company in Bangkok, then look no further than Smart Service. For more information you can call us on +66 (0) 2261 7788, email [email protected] or you can contact us directly via our website. Our friendly and professional team are waiting for your call.