The Construction industry has witnessed a growth of 2 percent from 2014 to 2015. The India Brand Equity Foundation [IBEF] has predicted the Indian real estate market to touch US$ 180 billion by 2020. In fact, as per India Brand Equity Foundation [IBEF], the housing sector alone contributes 5-6 percent of the country’s Gross Domestic Product (GDP). With such a rapid growth it is quite obvious for NRI’s, middle class, higher middle class to invest in the properties! However, the pain point is “a robust system, making buying, selling and maintaining the property “ does not exist as many people either are not willing to or not available to get into a mad rush of buying/selling properties. That’s where the Property Management Services comes as a savior!

What Are Property Management Services?

Wikipedia says Property management is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition. The firm, offering Property management services to manage the property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain end item deliverables. It also involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above, including acquisition, control, accountability, responsibility, maintenance, utilization and disposition.

What Are The Services Offered By A Property Management Service Firm

Here is the list of services offered by a property management firm-Prperty-buying-1-300x212

  • Electromechanical (E and M) services
  • Housekeeping services
  • Security services
  • Clubhouse management
  • Promotional displays/space for hire
  • Help desk /concierge services
  • Landscape Management
  • Garbage management
  • Events and promotions management
  • Vendor management
  • Annual maintenance contract (AMC) management
  • Rental Property Management
  • Buying and Selling Property
  • Deal Negotiation
  • Documentation and Paper Work handling

How A Property Management Firm Operates

Prperty-buying-2

When an individual approaches a property management firm either for any of these options-

  • Buying a Property
  • Selling a Property
  • Managing Rentals

So let’s pick each case with an example.

Buying/Selling a Property

  • Choosing and Signing with a Property Management Firm
  • Understanding Clients Requirement
  • Exploring Options
  • Helping and arranging site visits
  • Deal negotiations
  • Deal Closure

Managing Rentals

  • Choosing and Signing with a Property Management Firm
  • Understanding Clients Requirement
  • Access the market value of the Rental Property
  • Market the property for rent
  • Tenant Screening and Selection
  • Necessary Paper Work, Legal Formalities
  • Rent Collection, Inspection, Maintenance, Remodelling, Repairs

Is Property Management Firm Different From Real Estate Companies?

Not Really! One could categorize the property management firms into two categories

Category 1 – Firms Offering Only Property Management Services, these firms have a tie up with local vendors for housekeeping, property agents or brokers. With such firms, the client could directly pay to the vendor or the firm in return for the services used.

Category 2 –  Some of the construction companies, they have extended their services or could either point you to an external firm that offers such service at no extra charge.

What Type Of Business Model Do Property Management Firms have?

The business model of the firms could be classified as –

Percentage Of Rent

 One of the most common model opted by firms, where a fixed percentage of amount [as agreed during the sign up between the firm and client] is taken up by the firm.

Fixed Fee

Another effective model for maintaining/monitoring of empty house/site where a fixed amount [as agreed during the sign up between the firm and client] is taken up by the firm.

Guaranteed Rent

The model opts for areas where high demand exists, the firm signs up a contract with the client and agrees to pay a fixed guaranteed rent, whereby client allows the firm to sublet the property.

Revenue Share

The model is applied to properties that are high revenue generating, the firm signs up a contract with the client and agrees to pay a percentage of revenue, where client allows the firm to convert the property into a service apartment or a business center.

How The Property Management Firm Could Be Beneficial To a Customer!

With services floating around, it is hard for a customer to sense the right and wrong. However, we give you these reasons, on why you should hire a property management firm that is competent, trustworthy and a good fit for your property –

  • Cost and Time Effective legal issues
  • For a rental or property for sale, the property management firm could help you in assessing the correct value of the property
  • Aids in marketing your property to get more and better customers
  • The firms offer a time-tested tenant retention policy that ensures joyful tenants with long-lasting stays in your properties
  • Preventive maintenance offered by the firms, helps in maintaining your property for longer duration, thereby increasing your returns on investment
  • Saves time and reduces your stress levels
  • Can help you in assisting with taxes

Smart Owner Could Help You!

Smart owner a property management service firm by Dilzer Consultant could help in investing into the real estate, with the flexibility to invest in smaller sizes at discounted rates up to 50% of the pre-launch price. For details please visit our site.

We hope we have answered your queries on how Property management services operate and the benefits it offers. If you still have any unanswered questions or need help, feel free to contact us here.

We would be glad to help you with your planning and investment related decisions.

Samiksha Seth

Content Strategist – Dilzer Consultants Pvt Ltd.

http://articles.economictimes.indiatimes.com/2013-07-26/news/40815705_1_property-management-asset-management-management/2
http://www.livemint.com/Money/xQ0TokQRJo1nQCphhEQmtK/Take-care-of-your-home-fromfar-away.html

http://www.ibef.org/industry/real-estate-india.aspx
https://in.finance.yahoo.com/news/indian-real-estate-market-likely-fair-2015-101814123.html

http://articles.economictimes.indiatimes.com/2010-11-28/news/27601234_1_property-management-facility-management-nris
https://en.wikipedia.org/wiki/Property_management
http://www.managemyproperty.com/articles/what-are-the-benefits-of-using-a-property-management-company-9
http://www.managemyproperty.com/articles/property-management-services-a-complete-list-7
https://en.wikipedia.org/wiki/Property_management_business_modelsLink
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