What are the benefits of Property Management?

You must have heard of property management, but are you aware of the benefits of such an arrangement?

There are a number of benefits for both parties in the contract- both the landlord and the tenant. With tenants becoming more aware than ever before, many seek out arrangements made only where the landlord has taken property management contracts.

Advantages for tenants

As a tenant, you require peace of mind. A property management company takes away a lot of the hassles and worries that you may have as a tenant. For example, before moving in, a tenant should receive a “schedule of condition” report which assists at the end of the tenancy in terms of the security deposit return. The property will also be checked and prepared for the tenant by a portfolio manager.

A good contract will register a tenancy under Ejari- with an extra cost. It’s legally required for the tenants to have an Ejari certification, without which you can’t get your utilities connected.

As the main point of contact for general issues and maintenance, the property manager helps in avoiding problems of finding reliable service providers, or getting hold of landlords in different time zones, for example.

This provides the tenant reassurance too. Having a professional person operating between the landlord and the tenant often makes an easier resolution of any issues.

If and when you choose to leave the property, the coordinator will be there for handing over the key and check out to make sure that there are no issues on the part of either party.

Advantages for landlords

A contract of property management brings peace of mind. A property management contract takes the stress out of the rental, from the initial screening of tenants to transparent management of the legal and financial issues, landlords can relax knowing that there is an impartial third party looking after their property and the tenant.

You may prefer to simply not deal with tenants at all. Studies show that managed properties protect the investment of the owner and also help in achieving higher rental yields.

In Dubai, look for a RERA-regulated PM company. One which stays up-to-date with the regulations and laws, making sure that the tenancy is correctly maintained.

The security deposits can be handled from the handover to departure by the manager, as can rent payments, rent collection, and any issues arising from non-payment of rent.

With issues of nonpayment of rent, you should expect a PM company to handle the legal process, including reporting to the police, serving notice, and opening a rental committee. Remember, for your PM to act on your behalf, you might want to consider offering the PM coordinator the power of attorney.

Here in Dubai, cheques remain the only type of security and a good PM company should manage the relationship between landlord and tenant, such as deposits into foreign accounts and deductions of maintenance fees or service charges.

Managing the property finances remotely can be a real headache and this is a strong pull for many landlords or property investors to take advantage of the property management services. You should expect a quarterly detailed statement of the account, so you can clearly keep up to date on the expenses of a property.

What a landlord should look for in a PM agent is someone who can make sure that the property is properly maintained. A well-looked-after property is reflected by good, long-term and reliable tenants. With a PM contract, your investment will maintain its market value, making it easier to re-let and minimizing the periods of the void.