10 Benefits of Hiring A Property Management Company in Singapore
You will be only too aware of the various problems if you are a landlord in Singapore. The management of the property will throw up numerous challenges which can be costly financially, emotionally and time consuming.
You also have no idea about the problems, and you know handling them may be challenging. This is when a professional property management company or a property manager will prove to be vitally important.
A professional property management company will have the necessary support networks available to them when things go wrong. They focus solely on property management service. Having a professional property manager, you can add great value to your rental property investments, which is why so many experienced real estate investors agree that working with a good management company is the best thing. Problems get resolved quickly, efficiently, and many other benefits. These are among 10 benefits of hiring a property management company that you should know.
1. Personal Benefits
Property managers or their team will have received comprehensive training, which is rarely offered by juristic committees. It is best to leave things you don’t understand to the experts. By hiring a specialist, you won’t have to deal with late-night emergencies, evictions, chasing down rent, damages, paperwork, having to find contractors, and other tedious and time-consuming tasks. Less stress, more freedom and more free time. Your time would be better spent doing other things than micromanaging a property.
2. Established Contacts
A creditable property management company will have negotiated favourable contracts to carry out any repairs efficiently. It will save you from taking a chance with an unknown company as they will already be trusted. Property management services company will negotiate rates which are often below the market value.
You will gain access to professional maintenance and a network of licensed, insured, and bonded contractors. Tenants are always happy if you offer them good maintenance, not to mention that by doing that you also preserve the value of your assets.
3. High Quality Repairs Carried Out
One of the major concerns is when significant repairs are required. For instance, the swimming pool pump breaks down, or there is a problem with the roof. These are naturally problems that need addressing quickly, but knowing who to contact, a company that will do a high-quality job at a reasonable price can take time. Through their network of contacts, a professional management company will be able to arrange for the repairs to be completed and to the required standard.
Somehow, inexperienced condominium managers may overlook something crucial points and not have the correct procedures in place to ensure the smooth running of the building. Professional management companies will ensure that routine maintenance is carried out, which will reduce the chances of these types of events occurring.
4. Getting The Right Tenant
Finding any tenant, let alone the right tenant can be tough for a landlord. A professional property management team or property manager will be able to help with this as they will have the necessary knowledge and experience to address any problems.
Furthermore, they will not only market your property, but they will also arrange viewings, conduct thorough background checks on potential tenants and preparing legally binding contracts. These contracts will protect both landlord and tenant, and the added professionalism will give potential tenants that extra confidence to select your property as opposed to an alternative. They will ensure that maintenance fees are paid on time, that residents abide by the rules and that no one receives preferential or adverse treatment. It will make the property more desirable and attract better quality tenants
5. Hassle-free Accounting and Administration
Handling the collection of rent and late fees is an extremely important aspect of property management. Rent must be collected on time every month to ensure consistent and reliable cash flow and it’s important that tenants understand that. It should be made clear how important each clause in the lease is and if breach it there can be consequences. Being too permissive, tenants may walk over you.
By hiring a professional property management company, the landlords put a buffer between themselves and the tenants, allowing the property manager to be the one who must listen to tenants’ excuses, collecting the rent, and handle evictions if necessary.
6. Legal and Tax Issues Handled
All legal and tax rules must be complied. Failure to do so may results in litigation since these are statutory requirements. It is another area where inexperienced management may overlook something or not have documented procedures about how the issue should be addressed.
A high-quality property management company is armed with a lot of knowledge, and they can protect you from potential lawsuits and vulnerabilities.
If you avoid one lawsuit by hiring a specialist, the money that you save will be more than sufficient to pay the property management company’s fees, and you will also avoid wasting your time and energy.
7. Higher Rate of Occupancy
A property management services company will be able to help you achieve higher occupancy rates which will increase your ROI. It is a familiar problem; a seemingly satisfy tenant doesn’t renew their contract, perhaps because it was left too late, or they felt they were taken for granted.
Professional management companies will have more contact with tenant which will reduce the chances of this occurring. However, should they decide to leave, the management company will already be proactively looking to find alternative options. The intention is that this will reduce the time your property is left empty.
8. Knowledge of True Market Values
A common error that many property owners in Singapore make is that they overestimate of how much rent they can obtain and they easily get confused on why are they getting very few number of viewings. Pricing your property out of the market is dangerous but it is common. Sadly, many landlords are tempted to increase the rent during difficult economic conditions to reduce their potential losses especially during this Covid-19 pandemic situation, but this obviously worsens the problem.
As a property owner, knowing how much they can realistically expect to achieve in terms of rental yields can cause endless headaches. Even comparing one property to something similar can prove to be misleading as the terms of the contract may be significantly different. A property management company will know what your unit or house is worth in today’s Singapore market.
Competitively pricing a property is always the key, and a professional management company will have data and statistic available to back up their suggestions. Setting rents too low does have many drawbacks, the consequences are less damaging, but obviously, everyone wants their condo or property to achieve the rental yields that it deserves.
9. Advertising and Marketing Skills
As we mentioned in the beginning, having the right contacts is the key, and this is applicable to marketing. Also, if you require any design work for the property, they will always be able to recommend someone or be able to do the work themselves. Once again, this will give you a competitive advantage as you will get your property in front of more people. As we are now in a digital era, knowing where to place the advertisement and market your property is necessary. There are countless portals and websites available which are excellent, but there are just as many which are low in ratings. Having some insight into where and how to market a property is essential.
Creditable property management companies bring an element of professionalism to your business. The whole operation will run far smoother, and it will be notable. Everyone will understand their capacity, there are support network of the parent company brings the reassurances that you need and there will be ready-made replacements on hand if needed.
Psst! Ping Property is a well-know property management company in Singapore!
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