Have you recently bought a property for investment in Brooklyn? Buying a property for personal use is different from an investment property. Looking after a house or condo is easier when you are living in it. However, managing property for other people to rent it or use it requires a different management level. Some people believe that self-managing the property is a better option for them and can make it work. It is not easy, and it is not surprising that a large percentage of people prefer using a property manager.
Why Use Professional Property Management?
There are several reasons why self-managing a property may not work. It requires a lot of time and comes with a lot of responsibility and risk. You need to assess all options and see what works for you and your property. Every property is unique, and its owner and what works for one person may not work for another. Many properties in Brooklyn are quite old and require special and specific maintenance. Property owners can hire property management firms for various reasons.
- Some owners lack the expertise or time required to maintain the properties or deal with clients. They like owning properties and making money but do not want any other hassle.
- Absentee owners who are unable to monitor the properties physically prefer a professional property management service.
- Property owners who are not fully aware of all regulations and stipulations of the government always prefer to get some professional help.
- Owners may not be aware of the latest rental trends such as co-living and co-working spaces, communal living, etc. professional property managers can best handle these.
What Can Property Management Include?
Property management involves operation, maintenance, and oversight of real estate of all kinds. All the processes, systems, and manpower related to managing a property are part of it. Both residential and commercial properties can be looked after this way. Usually, an owner of a home or apartment will use the services of a professional management company to:
- Inspect the property before taking charge.
- Advertise the property in the best way.
- Handle the inquiries with clarity.
- Screen the prospective tenants. This may include credit and rental history.
- Select the suitable candidate after consultation with the owners.
- Draw a lease agreement using legal documents which are necessary for the location of the property.
- Ensure smooth moving-in of the tenants.
- Collect rental income timely.
- Keep track of all maintenance issues. A limited Power of Attorney can be given in case required for dealing with the maintenance issues.
- Give all relevant information to the owner.
Based on the owner’s requirement and budget, a professional property management company may be asked to do more or less than what is given here.
Types Of Property Management
There are many types of models which different property management companies use. Most of it is based on the type and size of the property.
- Single-family homes: some companies specialize in single-family homes. They usually operate by taking a percentage of the rent or sometimes one month’s rent. They will also charge a fee every time they find a new tenant for the landlord.
- Multi-unit buildings: large property management companies generally handle these because it requires more staff. They may even have an office in the premises of the large apartment buildings and may have an exclusive agreement for all rentals in that apartment. They can charge a percentage of the rent and are usually responsible for rent collection. Sometimes they are also in charge of the maintenance department.
- Vacant homes or land: the company must regularly monitor such properties and report back to the owners. Instead of charging a percentage, they will take a fixed monthly or annual fee.
- Serviced apartments: the companies will take a furnished property from the owner and rent it to clients. They will take care of all operations & maintenance and share the revenue with the owners.
- Guaranteed rentals: the company will lease a property from the owner and pay rent whether it is occupied or not. This works for small units in locations that are much in demand.
- Commercial property: similar to service apartments, the property management company takes a property and converts it into an office or retail unit and shares the revenue with the owner.
- Facility management: this is also a popular property management model where the company manages all the common amenities and facilities in a big apartment unit. The maintenance of the pool, gym, cleaning, and repairs in the common areas may be their responsibility. They will mostly get a fixed monthly fee for managing these services.
Apart from these models, there could be several other types of property management. Some brokers double up as property managers and do both jobs. In small towns or smaller areas, it is normal for property managers to handle multiple things. Hiring a professional property management company has to be a well-thought-out decision.
Conclusion
Brooklyn is well known for its unique architecture. The buildings are beautiful to look at but require a lot of maintenance and care. Moreover, Brooklyn is a coveted city for both residential as well as commercial purposes. So, if you have a property in Brooklyn, then you need to place it in the right hands for proper maintenance and get maximum returns. By deciding carefully and going with the best property management options, you can get a profitable deal for your Brooklyn property.