Real estate remains one of the best places to invest your money. The value of properties appreciates annually. They can also generate passive income by turning them into residential and commercial properties, such as rental houses and commercial buildings. Real estate is not covered by inflation since its value rises yearly. It is no wonder why property owners establish a green living development on their lands.
Speaking of passive income, many property owners develop their lands to become apartments, townhouses, and commercial buildings to generate steady income.
The challenge of having rental properties is managing them. This part is whereproperty management services in the Philippinesenter the picture.
How can a property management company in the Philippines help you manage your real estate properties?
What Are The Roles Of Property Management Companies In The Philippines?
Many apartment owners and commercial building owners handle the maintenance of properties, tenant complaints, rental collections, and pursuing evictions themselves. But if you have to manage multiple units in different locations, these responsibilities can be burdensome.
Property management companies in the Philippines can help you do this work.
1. Implements landlord-tenant laws
Believe it or not, some landlords and tenants are unaware of the laws protecting the rights of both parties. But usually, these are for small landlords and tenants alone.
But if you will lease your bigger townhouses and apartment units or building floors and commercial buildings for offices and businesses, you need to implement landlord-tenant laws.
These laws cover rent increases, rent collection and deposits, subleasing contracts, ejectment and eviction of tenants, rent-to-own schemes, and so on.
If you don’t understand and are clueless about how to implement these laws and policies, you can let property management services in the Philippinesdo the work for you.
2. Property management and maintenance
Based on its name, aproperty management company in the Philippines deals with the physical condition of your properties.
Firstly, before tenants occupy the property, property management services make sure the building or the infrastructure is safe. They hire reputable contractors to do repairs and replacements before letting tenants in.
Secondly, they address tenants’ complaints about the physical issues of the property, such as clogged pipes, leaky roofs, and cracked walls.
Thirdly, they also handle infestation that affects the integrity of the building, such as termite colonies that eat wood pieces in the building.
They usually contact services, such as exterminators, contractors, plumbing services, and electricians; to fix these issues.
Property management companies in the Philippines take care of regular and emergency repairs.
3. Rent management
Rent management starts by setting up the rent. Generally, property management companies in the Philippineshelp property owners to come up with competitive rent rates before launching it in the market.
Usually, rates depend on the property’s location, the type of property, whether it is for residential or commercial use, taxes, and more. Property management companies research to benchmark the best rent rate.
The second part of rent management is rent collection. The property management company in the Philippines designs a contract and policies regarding rent collection, including rent collection date, late payment penalties, and medium of payment. They also deal with rent increases.
4. Tenant management
Property management services in the Philippines also manage tenants.
Firstly, they screen prospective tenants, investigating their backgrounds, financial status, and application documents.
Secondly, they handle tenant complaints and neighbour complaints about the tenants. They can cancel the contract and issue an eviction if they find fault in the tenants.
Lastly, the property management company in the Philippines also deals with subleasing policies. For example, the tenant wants to open one of the rooms for bed space or convert a portion of the house into a commercial or business space.
5. Budget and tax management
Besides collecting rent, your property management company in the Philippinesalso manages other money matters, including the budget.
This budget is usually allocated for regular maintenance, emergency repair, and property insurance.
It is also for the salary of the building’s staff, such as security guards, cleaning and maintenance team. A portion goes for utility, such as security systems for office buildings.
The property owners have the discretion whether to handle property tax filing themselves with the help of an accountant or let the property management services in the Philippinesdo it.
Now that you know the role ofproperty management companies in the Philippines, it is time to determine whether you need to hire one.
How To Tell If You Need Property Management Services In The Philippines
As mentioned, not all property owners and landlords get property management services; they choose to handle the responsibilities themselves. But how will you know if you need a helping hand?
1. You are handling several units.
Multiple rental properties can be challenging to handle and organise for landlords. Generally, property owners with numerous rental units need a property management company in Singapore to supervise the properties.
2. Your property units are scattered.
In an archipelagic country like the Philippines, landlords can own residential and commercial units in different cities and provinces. Sometimes, landowners lease their properties in the country whilst living abroad.
If you are not near your rental units, it is better to let property management services in the Philippines do the work.
3. You don’t want to manage your properties yourself.
There are situations where leasing properties are only a side hustle for landlords. Most landowners devote their time to their business, work, family, or education other than managing their properties. They can let propertymanagement companies in the Philippines do the work for them.
4. You are willing to give up control and share liability.
When you hire aproperty management company in the Philippines, you give them control of your property and make decisions on your behalf.
You must also remember that if your property manager breaks landlord-tenant policies and laws, you can also be liable and accountable as the landowner.
If you are new to the property and real estate investing and having trouble managing your units, hiring a property management company in the Philippines can be helpful. But you must also consider the risks of their services.
Are you looking for aproperty management company in the Philippines that will handle your real estate and initiategreen living development? Visit Arthaland today.