Charges, responsibilities, and perspectives while hiring a ‘Property Management Services’ company In India!
In India, homebuyers are increasingly seeking the help of Property Management companies to manage their residential property. Finding the right property management company to work with your property is a big deal!
By hiring a property management company, you end up giving control to take care of your property responsibly. You hand over your home and expect them to take care of it sincerely and dedicatedly.
All these costs! You must know why you are paying, and what you can expect from your property management company!
It is important to understand that it is not just about rent collection alone! MAINTENANCE and UPKEEP of your property form a critical part of taking care of your house. As a homeowner, the biggest priority is to make sure the home remains in TOP CONDITION, and all the problems that arise from time to time are fixed. The tenant not only uses your property to live but also helps find the faults and fix them!
Collecting rent, and managing tenants is just the obvious part and is not the only reason for hiring a property management company.
A. Charges you can expect as part of property management fees
- Generally, the property management companies charge fees in the form of commission, flat fees, or bills per property. This would be around 8 to 12 percent of collected monthly rent on the property in addition to the expenses.
- The monthly fee is determined based on many factors, so it’s better to find out the local rates of your property type.
- Property managers find a tenant, do the required verification, make visits to the property, handle the check-ins and check-outs, collect the monthly rent, perform inspections, regular cleanings, and maintenance, repairs, complaints, etc.
The above mentioned are some of the basic services provided by the property management companies. Every company is different and has its own set of services offered and pricing range. So one should make sure that the charges and fees are mentioned in detail in the contract before signing the agreement.
B. The most common fees to expect
1. On-boarding or Registration fee:
A one-time fee would be charged to establish a partnership between the company and the client.
A one-time on-boarding fee may be charged to establish the partnership and open the account.
2. Vacancy Fee
Some companies charge a vacancy fee, which is a small flat fee or regular monthly fee for unoccupied properties.
3. Late Fee
When there is a delay in monthly rental payment by the tenant, the company may charge a late fee. Which may be returned to the owner or a portion of the late fee will be charged by the company.
4. Maintenance Fee
On the owner/tenant complaints and maintenance issues the companies may add a markup fee on the original costing to keep up as their commission.
5. Rent or Lease Renewal Fee
Some companies charge a flat fee at the time of the lease or rental renewal by the tenant. Also, the client will be charged a small fee at the time of renewal of the contract between the client and the property management company.
Management companies may keep apart, commission, all of it or none of the income associated with some miscellaneous fees collected in the form of returned check fees, documentation charges, lease violation fees, unpaid invoice fees, etc.
C. The right perspective
Some owners may feel that the property management companies are overcharging them especially when they see unexpected charges on their accounts. However, when a company handles all these stressful duties, attending to emergency issues, and hunting for rental collection, the owner won’t feel like wasting money or being overcharged. These companies promote the success of the property.
D. What to watch for
Thorough market research before opting for a property management company. Compare the pricing with other local companies.
Make sure you understand the terms and conditions of the agreement before signing the contract. Discuss all types of fees charged by the company.
Choosing an efficient property management company will lead you to a hassle-free life.
To know more about “Property Management Services In India For Residential Properties!” Click here!