Property Management and its dynamics
Property management is the daily supervision by a third-party entrepreneur of residential, commercial or industrial property. Property is one of the most precious possessions.
Professional and aggressive management is necessary to foster it. It is of fundamental necessity to select an experienced, transparent, licenced and responsive property management service to ensure that property remains ever better in form and does not erode its value. Choosing suitable property management (PM) can be a daunting undertaking for the first time in particular.
Here are some pointers on selecting a large property management company:
- Experience in property management:
Experience is always louder than words. The number of years of relevant PM firms has been at the forefront of the business and is an effective tool to assess their potential. It is essential to review the list of customers served on the website or in the company’s publication. This will give a sense of whether the property management firm has only expertise in servicing customers with similar criteria or whether they are also well experienced in meeting the dynamic and inimitable requirements of real estate customers from different backgrounds.
Technology has played an essential role in providing quick access and keeping property management organizations closer to tenants. The tenants do not need to visit the office because they may contact real estate managers by phone, Whatsapp, e-mail and other means of communication.
It may seem like a surplus cost to spend time and money on research. Still, it is an irrefutable reality that this exercise can avoid choosing an incorrect property management service.
Make a PM firm that has more experienced Community Managers a priority. Visit LinkedIn and choose the property management company name. Then click on the profiles of the employees to learn more about their job experience and whether it corresponds to your expectations. The choice of a property management agency with experienced personnel is a kind of insurance that your tenants will receive excellent service with few complaints.
It is also essential to investigate team member turnover. A high turnover of staff shows that experienced employees seldom stay with the organization. It is also reasonable to analyze the cost-benefit of the fee charged by the management company (PM) and the degree of services provided.
The time spent investigating these facts will reflect on the provision of the service and can spare you from making expensive errors.
When picking an estate management company, the company must conform with RERA – Dubai Land Department requirements.
A property management firm must have all relevant credentials – tax compliance, business registration, insurance certificates and other municipal authorities – to maintain compliance. Any other professional affiliations and certifications such as the ISO will be an addition.
Reporting is a critical business interaction requirement. On-time, property management companies which report on business are more likely to secure more business from more prominent and compliant real estate companies. The fundamental goal of these reports is, through a strategy to increase numbers shortly, to make all essential stakeholders aware of its present status.
Some of these reports include —
Tenancy reports: these reports provide frequent occupancy updates, sales rates and pending notices
Financial reports contain business margin information, a rental summary collected, agency fees, other service fees and management expenditures.
Ad hoc reports: these studies provide insights into trends in the market and the elements that may be disruptive. It so aids speedy decision-making.
- Reviews & Testimonials via the Internet:
Based on internet reviews, property companies assess which property management organizations meet their standards even before the dialogue begins. Google reviews and Yelp reviews of clients they operate or work with comments throughout social media sites are vital to verify. They both serve well as a beneficial resource while simultaneously comparing several organizations.
Personal or professional referrals or relationships can also gather information about the quality of work provided by the management company. This is one of the most practical and reliable approaches to examine the property management business’ capabilities.
- Review the PM Agreement thoroughly:
The property management agreement explicitly describes a customer-to-property manager relationship. The document provides details on the services given to the company, the responsibilities of the owner, contract duration and termination terms.
The property management agreement explicitly explains the insurance coverage, particularly the amount to which the company is insured. Whether a PM company has only adequate general liability insurance or has insurance cover for property-casualty, errors and omissions, etc., must thoroughly study the property management agreement and make necessary adjustments before signing. It must be ensured that there are no unpleasant clauses in the paper.
- Fees for property management:
To deliver great services with higher margins, property management rates must be reasonable. It is crucial to establish what should adopt payment model should since many property companies offer a fixed price and others charge a percentage of rent collected or a blanket fee based on company demands. Some organizations charge a commission-based rate in conjunction with other incentives granted for outstanding services offered to tenants.
A property management firm’s finances play a critical factor in selecting it. The choice of a financially sound PM company means that employees will not face issues obtaining their wages on time and are better looked after. This will enhance their moral standards and lead to better services for the customer.
Why Choose Fajar Realty for Property Management?
Here are the main reasons to work with Fajar Realty:
- More than 15 years of experience in Property Management, Owners Association and Community Management.
- 13,000+ units managed in UAE
- Developed in-house and maintenance platforms that interface seamlessly with clients’ systems
- Proud corporate member
- Occupancy rates of its managed properties in the UAE
- Multiple prizes for Top seller of the month and Top Broker Award – 2017, Top Broker Award 2018 and Damac Q1 Broker Awards 2021.