subject: The Steps Involved In Appointing A Company For Property Management [print this page] Understanding the steps involved in appointing a property management company helps to ensure that you get efficient services at the right costs. Whether it is about managing a residential or a commercial property, choosing a management company specialising in this field lessens hassles, prevents waste of time and money and ensures efficient management of the real estate asset.
The first step involves identifying the specific requirements you have. Every property is different and managing it would require different strategies and services. Before you start looking for a company that provides such services, it is necessary to know exactly what you are looking for.
While some companies offer services for a wide range of properties, some offer services only for a niche clientele. Consider which one would correspond to your requirements better. Consider whether you require complete management solutions for the property or partial services only. You also need to consider the hours of service your project requires as well as whether there is any necessity for an on-site manager.
The next task is to find out the right management company. You may ask for recommendations from other property owners or look for such companies from online resources. Whatever method you apply to find such companies, make sure you keep in mind the following things:
The years of experience in the field of property management
The area of specialisation
The types of services available
The company procedures and policies
The client testimonials and general reputation
The third thing to do is to enquire about the charges. A property management company may offer its services as individual ones or as a package. You may be able to find companies that charge you on the basis of the particular services you avail and companies that offer services at a flat rate.
Whichever management company you choose, make sure you have an idea about the rates at which the services would be available for your project. Sometimes, you may have to pay a flat fee for general services like rent collection and additional fees for specialised services like advertising and leasing. It is better to clarify any doubts regarding costs before you enter into an agreement to avail these services.
The next step is to create a working agreement with the company. Documentation of every detail agreed on by the property owner and the management company is necessary to prevent any hassle later. Get in touch with a legal advisor for creating and reviewing the contract you are considering.
What should be included in this agreement? Your solicitor would be able to provide the relevant details in this regard. However, common provisions include the details of the services you arte availing from the company, the tenure and charges for the services, the details of renewal of these services at the end of the specified tenure, and methods to resolve breach of contract issues.
After you enter into a working agreement with a management company, all you have to do is make sure that the responsibilities are handled properly.
