Property is an active investment, one which requires regular maintenance and ongoing management. Many property owners are faced with this dilemma: should they manage their property themselves or entrust it to a professional?
A property asset requires a continual investment of time and money to keep it in good condition and to ensure that it continues to grow. This can represent a significant workload, which can easily overwhelm owners' day-to-day lives. This is why many choose to entrust the management of their property to a property management expert.
Are you a homeowner hesitating to hire a property management expert? Are you part of a condominium association and would like to find out more about the advantages of hiring a property management expert? Here's what you need to know about this professional's role.
Why work with a property management expert?
Property management is a complex business in Quebec. Not only do you need to be able to manage each property in the best possible way, but you also need to have a sound understanding of the laws and jurisdiction in force.
Despite the fact that many property owners have backgrounds in real estate, finance or business, not all investors have the skills and knowledge, let alone the time, to act as managers of their assets. In this case, it is more profitable to call upon an external manager to manage the property on a full-time basis.
Property management experts, whether self-employed or working for a management company, undergo both formal and on-the-job training to ensure that they are able to manage every aspect of property assets. They have a sound understanding of the basics of property law, and are responsible for budgets, maintenance records, selecting tenants, collecting rent, etc.
Property management experts also ensure that property damage issues are dealt with, that new revenue is generated while costs are reduced, that municipal and provincial regulations are complied with, and that any criteria that may lead to tax credits are met. They are therefore trusted experts in the field and will add real value to your investment.
What do property management experts do?
To excel in their profession, good property management experts need a wide range of skills. They must be able to carry out a wide range of tasks, from day-to-day operations to managing leases, complaints, orders and suppliers, etc. In particular, they must:
- Be aware of the needs and expectations of landlords and tenants;
- Take care of marketing and advertising for vacant units;
- Sign leases and negotiate agreements with tenants;
- Negotiate service contracts;
- Evaluate the performance of each building;
- Manage crisis situations;
- Provide for the maintenance of the building;
- Ensure the proper financial management of the building.
Note that this is not an exhaustive list, quite the contrary in fact! Their goal is not just to manage the asset for which they are responsible, but to add value to it, for example by increasing the property's energy efficiency to make it more profitable. On a day-to-day basis, property management experts deploy their strategies and expertise to manage your property in the best possible way.
Advantages and disadvantages of hiring a property management expert
Many property owners call upon the skills of a specialist property management expert because they see a number of advantages in doing so. Here are just a few of them:
- Optimisation of revenues generated by the building;
- Detailed management reports;
- Improvement of service;
- Savings in maintenance costs and labour costs;
- Peace of mind:
- Increased free time to take care of other tasks related to your ownership status.
Delegating management tasks to a professional in the sector has many advantages. But like everything else, it also comes with a few disadvantages, including having to pay a portion of your income to the manager, even if you do not make any profits. You will have to assume the risks.
In addition to this, it can be difficult, particularly in the early stages, to trust a stranger to manage your assets, even if this person is qualified to do so. This is a perfectly normal situation. Trust in the business world has to be earned, which is why it's so important to choose a good property management expert who matches both your expectations and your values.
How can I choose a good property management expert?
Of course, the last thing you want when you hire a property management expert is to find yourself doing most of the work. So, you need to make sure that the person you want to hire for the role offers a quality service that meets your needs.
Feel free to ask a series of questions to potential managers during your interviews. This will enable you to determine whether their services are of high quality and whether they correspond to your situation. For example:
- How many years have you been working as a property management expert?
- What services are included in your contract?
- Do you have your own team, or do you work with subcontractors?
- Can you tell me about any current or previous customers? Do you have any references?
- What are your guarantees?
- What are your performance indicators?
- What are your working methods?
- Have you received training to enable you to act as a manager?
- Do you have liability insurance?
Hiring a manager to administer your property assets is akin to a hiring process. Make a list of questions that will help you gauge the candidate's skills, knowledge and abilities. Evaluate their personality at the same time. Do they seem courteous and professional? These are two qualities that a good manager cannot be without!
Did you know that XpertSource.com can put you in touch with property management experts? All the experts in our network are carefully selected and pre-qualified.
How much does it cost to hire a property management company?
Rates may vary from company to company or from manager to manager. However, most property management companies calculate their fees in one of two ways:
- Monthly fees based on the number of dwellings per building;
- Pricing based on the gross income of the building, on an annual basis.
In order to determine which option is the most advantageous for your situation, you will of course have to do some calculations and projections.
Do you have a real estate project?
XpertSource.com can help you find a real estate expert. When you tell us about your project, we put you in touch with qualified resources for free. Simply fill out our form (it only takes a few minutes) and we will connect you with professionals.
