Rental management: definition, types and advantages

In the current real estate market, lease management is an increasingly common strategy, which facilitates processes for owners and tenants. In this article, we will develop what this strategy is, what services are provided and, finally, some benefits and precautions to take with rental management.

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Lease management: what is it?

Lease management services are a way for the owner of a property to delegate the various processes of leasing the property to an intermediary, the lease manager, between himself and the tenant.

The leasing manager will have a wide range of functions in the property leasing process, such as:

  • Direct contact with the tenant or interested parties
  • Ensure the regularization of legal issues surrounding the process
  • Deal with the various bureaucracies arising from the process
  • Resolve various potential problems and issues related to the property and the tenant

This way, by using a rental manager, the property owner will not have to face all these problems alone, delegating them to the manager.

Services provided

By hiring a leasing manager, the owner will be entitled to benefit from a series of services, provided throughout the various phases of the leasing process. Some of the services are:

Property promotion

Taking photographs of the property, promoting it on various platforms, as well as monitoring requests for visits to the property.

Tenant choice

Carrying out visits to the property, requesting the necessary documentation and choosing candidates for the leasing process.

Contract transfers

The necessary support has been provided so that the water, electricity, gas contracts, among others, are transferred to the current tenant.

Payment of rent

Collection of the rental value of the property from the tenant, within the agreed period. In case of non-compliance, a collection notice will be issued, as well as a penalty provided by law.

Order and complaint management

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 in question.

Possibility of sending a representative to replace the property owner.

Possibility of sending a representative to replace the property owner.

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 way, the owner has the possibility of avoiding major maintenance work, saving time and money.

Efficient communication

The rental management service enables more effective communication between owner and tenant, as information is filtered through the company, only reaching what is necessary, ensuring that all problems are dealt with more quickly and efficiently.

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

Lease 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 his property, without the work he would have to do if he acted alone.

To learn more about the topic of rental management, see this article.

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