Most of us know that property managers and property management companies exist, but many are not aware of what their roles are. By definition, a property management is a third-party entity who is employed by property owners to handle real estate operations. These professionals are capable and licensed to manage all types of real estate properties—from residential houses to large buildings with multiple rental units.
Although the roles and responsibilities of a managing agent vary on the agreement between the agent and the property owner, these professionals likely take care of estate maintenance and play these important roles.
1. Rental Management
• Setting Rental Value – It is part of the duty of a managing agent to set the right rental value of a property to make it attractive to prospect tenants. By considering the location and amenities, as well as the comparability of the property in the area, the property manager is able to set the most appropriate rental value for your real estate.
• Adjusting Rental Cost– the condo manager can also suggest increasing the rental value by a certain percentage annually, according to local or national law. They can also reduce the rent cost of your property if necessary.
• Collecting Rental Payments – To ensure optimal cash flow, they will set a date when to collect rent every month and impose penalty to late payments.
2. Property Maintenance and Repairs
• Maintenance – Another important role of an estate manager in Singapore includes handling apartment maintenance to keep the property in its pristine condition. They are the ones in-charge to look for property management contractors for plumbing leakage, pest extermination, landscaping and other estate maintenance works. These pros aim to keep tenants happy with their current homes and attract new ones once the unit is vacated.
• Repairs – If there is an issue, the manager will hire someone to fix it. They often have a large collection of contacts of professional contractors here in Singapore.
3. Tenant Responsibilities
• Advertising Vacant Units – Hiring a real estate manager means you will not have to stress yourself advertising your units to find prospect tenants. Property managers know very well where to post advertisements and what to show in the ad to attract prospects.
• Screening Prospects – A good condo manager is not going to settle with just any prospect. It is part of their duties to screen prospects and make sure that the tenant can afford and has the means to pay the rental on time. This means they are going to run a screening process, which includes checking credit records and criminal history. Since these professionals have met hundreds of tenants, they already know how to spot good renters—those who can pay on time, have longer tenancy plans and are less likely to create serious problems—from the bad ones.
• Addressing Emergencies and Complaints – They are also courteous at handling tenant complaints and have the necessary contacts to handle emergency situations, such as plumbing or electrical problems.
• Managing Move-Outs – When a renter moves out, the managing agent will inspect the unit to check for any damage and to determine how much of the security deposit will be returned. After the tenant has moved out, the manager will also have to clean the unit, repair any damage and find a new tenant.
• Execution of Tenant Eviction – when a renter violates an agreement or does not pay the rent, the real estate manager knows how to file and execute the eviction the proper way.
4. Supervisory Duties
• Estate Employees – Other employees in the property, such as the security guards, housekeepers and concierge, are supervised by the property manager to ensure that they do their job well. If allowed by the owner, the property manager has the power to set the salaries and even fire employees.
• Vacant Units – Besides checking the unit after the tenant has moved out, property managers always keep vacant unit regularly checked to make sure that there is no pest infestation and that the vacant units remain in their best conditions.
5. Implementation of Legal Matters
A seasoned property manager has in-depth knowledge of laws here in Singapore regarding the proper ways to:
• Handle security deposits
• Screen tenants
• Terminate lease
• Evict tenants
• Comply with the safety standards
6. Managing Budget and Maintaining Records
• Managing Budget – The property manager should operate within the given budget. During emergency situations, when the building’s structure or the tenant is in danger, they often use their own judgement to order major repairs.
• Keeping Records – This is an accounting task that’s part of the responsibilities of a condo manager. The record should include the income and expenses; inspections, repairs and maintenance made; and insurance cost and rent collection. Non-accounting matters, like tenant complaints, signed leases and maintenance requests, should also be part of the manager’s record.
7. Tax Responsibilities
• Licensed property managers know very well the taxes associated with owning a property for rent. Therefore, they can assist property owners with understanding the documents and the processes needed in filing taxes for property investment.
• For easier solution, the property owner can also leave the filing of tax to the managing agent.
There are many elements to consider when you choose to invest in real estate. Whether you are thinking of buying a property or having someone to manage your real estate business, you can benefit from the professional services of a skilled and licensed property management.