According to recent statistic, Malaysian property investors (those who own properties more than own stay unit) own 3.7 properties on their hands. To maximize the return on the investment, landlords tend to rent their properties by room or so called flatshare. Many landlords manage properties on their own or with the help of friend and relative, but they just need more than that, imagine managing 3.7 properties with 3 rooms on each property – that’s when a property management company might make sense.
Property management companies can be a huge asset to your business, but they don’t come cheap. And there are other reasons why you might not want or need one. Carefully review the factors discussed below to determine if hiring a property management company is the right move for your business.
What Does a Property Management Company Do?
Management companies deal with prospective tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance work and repair issues, responding to tenant complaints, and even pursuing evictions sometimes. Plus, a good property management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands.
Why Should You Hire a Property Management Company like Roomz.Asia?
Hiring a property management company has many advantages, consider the following factors below will help to determine hiring a reputatble property management company would be a good decision for your investment.
You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company.
You don’t live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.
You’re not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.
Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. Posting the advertisement alone takes you loads of time, at Roomz, we are already a very reputatble room for rent website with high daily traffic, why not pass this job to us and you spend your time growing your own business?
You can afford the cost. Hiring a property management company is an attractive option if you can afford the fees. When interviewing companies, expect to hear quotes ranging between 10% and 15% of what you collect in rent revenue. Remember, Roomz.Asia will help to maximize your return by renting the property in room, doing so the rental is at least 25% more, therefore giving out that management fee is nothing.
You don’t want to be an employer. If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
Your property is part of an affordable housing program. If you participate in an affordable housing program, things can get complicated. Usually, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to continue receiving the assistance, the landlord must comply with a complicated set of rules. With so much at stake, it’s often worth hiring a property management company that has expertise and experience with the particular housing program in question.
