Property Management – What is it?

Property management is a complex process. There are not many people outside the specialists and experts on the subject who can answer this question. The most popular idea is that the property, the real estate, is some fixed capital that stands in one place, and its price moves by itself (the usual idea is that, as desired, it moves up) and so the owner is “enriched” by itself.

In some cases, but not all, it really is. But even then, the landlord doesn’t get the money in current mode unless he has found the right tenants (which in itself is not always an easy task) – and he can only get that money after he sells the property.

Here, however, the unpleasant moment arises that the receipt of income from this property naturally ceases with its sale. That is, figuratively speaking, according to the famous expression, the “golden hen” ceases to lay eggs. More precisely: it is renting them out, but for the benefit of another owner.

Property Management – Residential Property

What is the smartest thing to do if you own a property and you want to earn income from it? To answer this question you need to be aware of what real estate management is. The simplest example, of course, is with an apartment for rent. Do you think the money is starting to flow by itself? No, this is only at first glance. Because this is where the complications start: tenants need to be honest and correct in paying their rent (which doesn’t always happen), also in paying bills (there are numerous times when they leave their rented home and leave behind a bunch of unpaid electricity bills , water, elevator, etc.), in relations with neighbors, not to inconvenience others by making noise, welcoming numerous and inappropriate guests, etc.
And these are the desirable conditions for only one apartment. It is difficult for the property owner to perform all these activities, especially when they lack the necessary knowledge or experience. Often, when homeowners are abroad, tenants take advantage of the lack of control and abuse. In this case it is strongly recommended to seek professional property management services.

Property Management – Buildings

When it comes to a larger property, things change dramatically. Then we are talking about building management or a large commercial site.
The large building can (and is desirable!) Be rented for various public purposes – for its reconstruction, for example, in office premises, for a shopping center (mall), a supermarket, a hotel site, etc .; the options may be different. Then it brings serious income to its owner. But, of course, those incomes don’t just come out of nothing.
This income appears as a result of the building management.
If the building is not properly managed, even if it was initially available, income will gradually begin to decline for a variety of reasons – depreciation with corresponding increased repair costs, irregular payments by tenants, legal services, complications with the local administration, etc.
It is advisable to place the building under reliable and safe management. Since this management is a very specific matter that requires the activity of specialists, you do not have to deal with its management.

There is a far more civilized and simplistic option – to outsource the building or, possibly, the complex of buildings, to a professional company that has the necessary specialists in the field of property management.

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