If you are part of a juristic committee, you may have considered hiring a professional property management team rather than a series of individuals. Although there is often the common misconception that they are expensive or luxury when it comes to housing management or condominium management, in the long-term, they can potentially save you significant sums each year.
Indeed, when it comes to property management services, if you are an individual living in the Kingdom or outside of Thailand, you perhaps should consider using a professional property management company. It will give you additional peace of mind that your house or condo is in the best possible hands. Of course, choosing the right company is essential, and in this article, we will endeavour to give you all the hints and tips that you need to achieve this.
When should you consider using a property management company?
All too often, individuals and juristic committees wait for something to go wrong before deciding to switch to a property management company. By this time, they could have lost significant sums of money as well as valuable time. With juristic committees, they can quickly lose the respect of residents who have witnessed facilities deteriorating due to poor management which has then resulted in property values plummeting.
We would suggest that as a juristic committee, you bring in professionals from the outset, teams that have experience and the necessary support network around them. Trusting well-meaning but inexperience individuals can have catastrophic consequences that can take months or even years to rectify. If you are a private landlord, you will be aware that finding any tenants is tough, but getting good tenants can seem impossible. Again, this best left to the experts; people who know how and where to place adverts to get desirable lessees.
Where to begin finding the right team
The first requirement is that you know who and what is available in your area. Searching on the internet is always an excellent starting point but beware that you may be overwhelmed by the number of property companies in Bangkok. Try to draw up an initial shortlist of around ten options which you will then need to get down to three or four. Once you have your final shortlist, you will need to do your due diligence. Overlooking this point and leave it a chance may prove to be a fatal error.
How to obtain your initial shortlist
- Try to be specific with your searches. For example, “condo management companies in Bangkok” or “private property management companies Bangkok”. There is no point focusing on companies offering property management services that don’t match your requirements. Thankfully, search engines, to a certain degree at least, will filter the search with the better quality options appearing on the first of pages.
- Approaching reputable real estate associations to see who they recommend is a great option. Obviously, you should try and select an independent organisation that has no affiliation with any brokerage. Professional directories are also a great option, but you may need to double-check that they haven’t got any allegiances to any party.
- Seeking advice is always a sound option, particularly if you are an individual. Talk to other landlords about their experiences with different property management companies. They may give you some tips on who to use, or equally tips on who to avoid. Juristic committees could speak to other groups that use management teams.
Understanding what is offered
After you have drawn up a shortlist, you then need to start to do your due diligence. Although it may sound like an obvious statement, you must understand precisely what is being offered. Although this is more relevant to individuals, the points are still valid for committees. There are some roles all property management companies will perform while others may be specific to that company. Here are some of the things that as a private landlord, you would expect them to do.
- Give you an accurate estimation about what rental yields you can realistically expect to achieve
- Market your property in the relevant places
- Arrange legally binding tenancy agreements and conduct any negotiations on your behalf
- Screen potential tenants
- Ensure that the rent is paid on time and have procedures in place if tenants fail to comply
- Conduct routine inspections and arrange any necessary repair works
- Provide accurate income and expenditure information
What should juristic committees expect?
A professional management property company in Bangkok will ensure the overall day to day management of the entire building or complex. It is critical that you remember that the property management company is answerable to the committee and not vice versa. As a result, you should expect, as a minimum, they perform the following tasks:
- Ensure that the building is structurally sound at all times
- Guarantee that the facilities are in full working order and arrange the necessary repairs as required
- Obtain quotes for repairs, selecting the best rather than necessarily the cheapest option
- Keep true and accurate accounts which are available on request to the committee or property owners
- Set reasonable budgets
- Ensure that residents adhere to the rules and that all bills such as the annual maintenance are paid on time
- Advise the committee of any problems that they foresee
What fees should you expect to pay?
Obviously, there will fees associated with the professional service that is offered. For entire condominium management and housing management, it can vary quite considerably from a fixed fee to a percentage, with a fixed fee being more common. Unfortunately, it is impossible to give a benchmark figure, but all quotes that you receive should be in a similar range. For individual landlords that are seeking property management services, a fee of anywhere 5% and 10% of the monthly rent would be a reasonable amount.
Although due diligence is a complex task, it is something which you must do. Any property management company should be appropriately registered, licensed and insured. Of course, professionalism is absolutely essential, so always gain references and conduct interviews. Search online to see what reviews they have received and if there are any trends in the comments. However, a word of caution, not all reviews are honest and accurate.
For private landlords, you should also get as much information as possible about how they will market your property and get as much information as possible on their background. What procedures do they have in place to deal with delinquent tenants and how will they ensure that your unit or house is properly maintained are also questions that you should be asking.
Concerns and when to change property management companies
We would always recommend listening to your gut feeling; if something doesn’t feel right, then it probably isn’t. Unfortunately, in a city such as Bangkok, complacency can be a serious problem, and standards can quickly slip. Common complaints that we often hear include:
- Lack of responsiveness or unacceptable solutions offered
- Administrative or accounting errors becoming frequent
- Feedback from tenants and owners is negative and online reviews are becoming increasingly critical
- High staff turnover resulting in owners and committees not knowing who their point of contact is
- For private landlords – they are witnessing a worrying increase in tenant turnover
Regardless of you are an individual or juristic committee, you should always select a property management company that has an excellent reputation. If you have any concerns about their professionalism or honesty, they are probably best to be avoided – or at least your concerns suitably addressed. As mentioned above, there is an abundance of property management companies in Bangkok, so you must ensure that you choose someone that is licensed and insured.
Any property management company should be responsive from the outset. Taking days or even weeks to answer questions is not acceptable and will inevitably cause problems further down the line. Efficiency, friendliness and approachability are also characteristics which you should be looking for as this will be a reflection on you. As a committee or private lessor, you should ask to see examples of the reports and documents that they will provide should you decide to work together. If they can’t do this, it is a significant concern, and for individuals, examples of marketing materials should also be requested.
Finally, just because you have used a property management company for a few years and you have previously been satisfied with their service, this does not mean that you need to stay with them forever. Business should always come before any personal relationships.
If you would like more information about property management services in Bangkok, then we would be delighted to hear from you. You can call us on +66 (0) 2261 7788, email [email protected] or alternatively, you can contact us directly via our website. Our friendly and professional team are waiting for your call.