Rental Management: Definition, Types and Advantages
In the current real estate market, rental management is an increasingly common strategy that facilitates processes for owners and tenants. In this article, we will explore what this strategy entails, the services provided and, finally, some benefits and precautions to consider with rental management.
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Rental Management: What is it?
Rental management services allow property owners to delegate various leasing processes to an intermediary, the rental manager, who acts between himself and the tenant.
The rental manager will have a wide range of functions in the property leasing process, such as:
- Direct contact with the tenant or interested parties
- Ensuring the regularization of legal issues surrounding the process
- Handling the various bureaucratic tasks arising from the process
- Resolving potential problems and issues related to the property and the tenant
By using a rental manager, property owners can avoid dealing with these issues alone, delegating them to the manager instead.
Services Provided
By hiring a rental manager, the owner will benefit from a series of services, provided throughout the various phases of the leasing process. Some of the services include:
Property promotion
Taking photographs of the property, promoting it on various platforms, as well as monitoring requests for visits to the property.
Tenant choice
Conducting property visits, requesting the necessary documentation, and selecting candidates for the leasing process.
Contract transfers
Providing support for transferring water, electricity, and gas contracts, among others, to the current tenant.
Payment of rent
Collection of the rental payment from the tenant, within the agreed period. In case of non-compliance, a collection notice will be issued, as well as a legal penalty.
Order and complaint management
Maintaining direct contact with tenant requests and complaints throughout the duration of the rental contract.
Property repair process
If the property requires repairs, the leasing manager may be asked to monitor the process.
Inspections
Possibility of carrying out periodic visits to ensure the good conservation of the property.
Fiscal year summary
Preparation of a document that contains all income obtained and expenses related to the rental of the property throughout the tax year.
Possibility of sending a representative to replace the property owner.
Providing a representative to act on behalf of the property owner if needed.
These are some examples of the services that a property owner can benefit from when entering into a rental management contract. To find out more possibilities for services offered, see this article.
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Advantages of Rental Management
By choosing to enter into a rental management contract for the property, the property owner will be able to derive certain advantages. Some of these are:
Better preservation of the property
Carrying out periodic inspections, maintenance, and regular assessments allows the property to be preserved in good condition for longer.
This approach allows the owner to avoid major maintenance work, saving time and money.
Efficient communication
The rental management service facilitates more effective communication between the owner and tenant, as information is filtered through the company, ensuring that only necessary details reach the owner, and that all problems are addressed more quickly and efficient.
Greater profitability of the property
There is a greater possibility of keeping the property rented for longer by entering into a rental management contract rather than having the owner deal with everything.
Furthermore, it becomes less of a source of concern for the owner, as they do not have to deal with any bureaucracy.
Care to Take
Although the rental management contract brings many advantages to the owner of a property, it is necessary for the owner to have some documents and/or certifications with him beforehand.
Some of these examples are multi-risk insurance, documentation that allows the property to be rented, inventory of assets and security deposit.
If you want to know what documents you need to have to rent your property, consult this article.
Conclusion
Rental management provides a convenient and effective solution for managing leased properties. By transferring responsibility and bureaucracy to a professional, the leasing process will be carried out more efficiently, allowing the owner to make greater profit from the property, without the hassle of managing it on its own.
To learn more about the topic of rental management, see this article.
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