If you own a property as a landlord or live in a residential unit as a tenant, you are certainly familiar with the challenges that can come with leasing and managing properties. One way to efficiently manage these tasks and create a positive living and rental environment on top of that is external rental management.
In this blog post, learn about the responsibilities of a rental management company, the selection criteria you should consider as a landlord when choosing the right management company, and what you need to know as a tenant about your professional rental management company.
The importance of professional rental management
Professional rental management plays an extremely important role for landlords, tenants and the smooth functioning of rental properties. Its importance can hardly be overestimated, as it offers numerous benefits and added values. Here are some of the main reasons why professional rental management is of great importance:
- Time saving and relief: A professional rental management takes over all administrative tasks related to the rental and management of real estate.
- Expertise and experience: Rental management companies have extensive expertise and many years of experience in the real estate industry. They are familiar with current rental laws and regulations and can provide valuable advice to landlords and tenants.
- Efficient leasing processes: Professional rental management companies have established leasing processes and marketing strategies to minimize vacancies and find the right tenants for the property.
- Conflict management and legal knowledge: In the event of conflicts between landlords and tenants or other legal matters, a professional rental management company is a neutral mediator. It knows the legal provisions and can minimize legal risks.
- Maintenance and repairs: Rental management takes care of regular maintenance and necessary repairs to the property. This ensures that the property stays in good shape and maintains its value.
- Transparent accounting records and statements: Professional rental management creates clear and transparent accounting records and rent statements for landlords and tenants.
- Improved tenant experience: Tenants benefit from a smooth process and quick resolution of concerns or problems by rental management. A good tenant experience promotes long-term tenant loyalty and positive word of mouth.
- Increasing the return on investment: Professional rental management optimizes the income and expenses of the property and thus helps to increase the return on investment for the landlord.
Overall, professional rental management can significantly improve the profitability and efficiency of rental properties. It enables landlords to focus on their core competencies, reduces administrative expenses and ensures satisfied tenants. With the support of competent rental management, property owners can take full advantage of the benefits of renting and make their investment successful in the long term.
The difference between external rental management & self-management
The difference between external rental management and self-management lies in the way the rental and management of a property is organized.
With external rental management, the management of the property is outsourced to a professional rental management company. This company takes over all tasks related to the rental and management of the property on behalf of the owner. This includes finding suitable tenants, drawing up rental contracts, handling rental payments, maintenance and repairs, communicating with tenants and all administrative tasks. In this case, the owner remains the legal owner of the property and retains control over important decisions, but has no direct influence on the day-to-day operation of the property.
By contrast, in self-management, the owner takes over the letting and management of the property himself without the help of an external company. He or she is responsible for all aspects of leasing and management, including tenant selection, contract negotiations, accounting and billing, maintenance and repairs, and communication with tenants.
Self-management can be a cost-saving option, but it requires a considerable investment of time and expertise on the part of the owner in order to complete all tasks efficiently and in a legally secure manner. In this case, the owner has full control over all decisions and can directly manage the operation of the property.
The tasks of external rental management
An external rental manager takes over the rental and management of a property on behalf of the landlord. His tasks cover diverse areas. These include, for example:
- Tenant selection
- Contract Management
- Rent payments
- Accounting
- Maintenance
- Repairs
- Communication with
- Landlords and tenants
- legal matters
- Insurance matters
By providing professional support, the rental manager enables efficient leasing, ensures transparent accounting and relieves the landlord of time-consuming tasks.
10 things tenants should know about third-party rental management companies
As a tenant of a property that is managed by an outside rental management company, there are some important things that should be known. Here are some of those important aspects:
- Contact persons and communication: As a tenant, find out about your direct contact person at the rental management company. Clarify how to get in touch with questions, concerns or repair requests. A clear communication structure is crucial for solving problems quickly.
- Rights and responsibilities as a tenant: Familiarize yourself with your rights and responsibilities as a tenant, such as paying rent on time, following the house rules, and reporting repair needs. Make sure you fulfill your part of the agreement.
- Maintenance and repairs: Learn how rental management handles maintenance and repairs. Clarify how to submit repair requests and the timeframe in which they will be processed.
- Emergency Contact and Emergency Service: Learn about the Rent Administration's emergency contact and emergency services for urgent matters outside of regular business hours.
- Transparency and statements: Make sure the rental management company communicates transparently about rent statements and utility bills. Make sure that you can understand the statements.
- Rules and house rules: Find out about the applicable rules and the house rules of the housing complex. These rules are intended to facilitate harmonious coexistence and should be respected.
- Communicate when changes occur: Inform rental management of important changes that affect your rental terms, such as a move or a change in contact information.
- Tenant community and cooperation: Make sure that you behave respectfully and considerately towards your neighbors. Good cooperation in the tenant community promotes a pleasant living environment.
- Use of community facilities: Clarify how the use of common facilities, such as laundry room or bicycle storage, is regulated.
- Complaints and conflicts: If you have disagreements with the rental management or other tenants, try to talk to them first. If this does not lead to the desired result, inform the rental management about your concerns.
By staying informed about these matters and cooperating with the rental management company, you can contribute to a smooth process and a positive living atmosphere. Open and respectful communication is of great importance here in order to resolve any concerns or problems promptly.
The right choice of external rental management
Selecting an outside rental management company is an important decision for landlords that can affect the success of their real estate investment. Here are some success criteria to consider when selecting an external rental management company:
- Experience and Expertise: Check the experience and expertise of the rental management company. Find out the number of units they manage, how long they have been in the industry, and their expertise in property management.
- References and reviews: Ask for references from other landlords who have worked with the rental management company. Also read online reviews and testimonials to get an idea of customer satisfaction.
- Contract terms and services: Review the contract terms and the services they include. Look for transparent fee structures and what tasks are included in the services.
- Response time and accessibility: ensure that the rental management company can be reached quickly for urgent matters and responds appropriately to requests.
- Expertise in tenancy law: Tenancy law is a complex subject. Make sure that rental management has in-depth knowledge and up-to-date understanding of rental laws to minimize legal risks.
- Transparency and reporting: ask for regular reports on the property's income, expenses and condition.
- Management software and technology: Modern management software and technology can streamline the management process. Ensure that rental management uses efficient technologies to support rental operations.
- Customer service and communication: Pay attention to the customer service and communication of the rental management. Reliable and customer-oriented service is essential for a successful collaboration.
- Collaboration and synergy: Look for a rental management company that promotes good collaboration and open communication. A partnership relationship can create long-term synergy effects.
- Company stability: Check the stability and financial situation of the rental management company. An established and solid company can ensure a long-term and reliable partnership.
Selecting an outside rental management company requires careful research and consideration of various criteria. By considering these success criteria, landlords can select a rental management company that understands their needs, acts professionally and contributes to the success of their real estate investment.
Conclusion: External property management or self-management?
The decision between external rental management and self-management depends on various factors and there is no universal answer that applies to every landlord. Both approaches have their advantages and disadvantages, and the choice should be weighed carefully.
External rental management offers numerous advantages, such as time savings, expertise, efficient leasing processes, professional tenant selection, transparent accounting and billing, and support in legal matters. It relieves the landlord of time-consuming administrative tasks and enables professional management of the property. Especially for landlords with several properties or limited experience in property management, external rental management can be a sensible and rewarding option. We will be happy to assist you in this regard.
