Residential Property Managment For Dummies

Residential Property Managment For Dummies

The issue of property management in closed residential complexes is solved quite simply. As a rule, developer companies have divisions that take care of all the concerns related to the maintenance of the infrastructure of a residential building. This includes the security of the facility, cleaning in common areas, care of the surrounding area. As additional options, customers are offered housekeeping services, payment of receipts for utility bills and property taxes. Therefore, at the stage of purchasing a home, the buyer signs a service contract with the developer, which details the company’s authority and the scope of services for managing the residential property managment for dummies.

The cost of real estate management varies depending on the type of residential complex, the location of the object, the volume of services provided. The average annual fee usually does not exceed 15 euros per square meter and is adjusted annually depending on the inflation rate in the country.

In the case of purchasing a private house, villa or housing on the secondary market, you can entrust the management of the property to a private company, such as the real estate agency through which the property was purchased. You can entrust the company with cleaning services for a residential facility, monitoring the technical condition of all systems, paying receipts, annual property tax.

What are the responsibilities of the management company?

  1. Finding tenants and negotiating with them.
  2. Negotiation of conditions and signing of lease agreements.
  3. Receiving rent from tenants and its regular transfer to the owner.
  4. Monitoring the condition of the facility and organizing current repairs.
  5. Organization of cleaning before accepting new tenants.
  6. Payment of utilities and taxes.

How is cooperation organized?

An agreement is signed between the owner of the property and the management company, which specifies the obligations of the parties, the amount of commission and other conditions of cooperation. Such an agreement may be concluded for a year, two or more. After signing the contract, the owner hands over a set of keys and bank details of the account, to which the monthly rent must be transferred.

The amount of commission payments of an intermediary is usually 10-30% of the rent. In some cases, especially when the property managment for dummies is of good quality and located in an attractive rental location, the company may pay the owner upfront based on long-term rental prices. The benefit of the management company is to receive higher amounts by renting real estate by the day.


Related Articles

Leave a Reply

Your email address will not be published.