Whether you’re buying an investment property, or find yourself suddenly moving out and needing to rent your place out, you’ll likely wonder if you should engage the services of a property management company.
Though it may seem like an extravagant expense that only a high nett-worth individual or commercial property owner can afford, working with a property management company is far more cost-effective than you may think.
Plus, the range of services a property manager is able to provide goes far beyond just collecting rent and troubleshooting any issues that may arise.
If you’re on the fence on whether a property management company can benefit you, consider the extent of what they offer and how their services may impact your life.
1) Guidance On Where To Purchase
If you’re buying an investment property in Malaysia, working with a property management company before you make a decision can be a smart move – especially if you’re purchasing while abroad.
They can provide valuable insight about which neighbourhoods to target – those that are in demand currently, as well as those that are projected to be in demand for tenants.
They can also help answer any questions you have about the prospective area, the properties available and local investment laws and regulations.
No matter what your goals are for your investment property, their expertise can help guide you in making a good and wise investment.
2) Marketing Know-how
You’ll need to find a tenant as quickly as possible, no matter what the reason may be that you want to rent out your place.
It could be that you’re purchasing an investment property, renting out your current abode while you upgrade to a new home, or move abroad for work/to continue your studies.
But the list of things that you’d have to do before your rental property is ready can be never-ending:
- Cleaning, repairing and decorating your place
- Taking attractive photos of your home
- Writing compelling ads
- Researching which rental listing websites are most popular for your desired type of tenant
It can be a time-consuming and intense chore that takes up an entire weekend – or seem like an impossible task that you must entrust to someone else if you’re living abroad.
But a local property manager can take care of all of that for you!
They can hire a cleaning crew, help you stage your place to look as desirable as possible in photos, provide guidance on what the ad should say, and where you should post it to attract the right tenant.
3) Tenant recruitment
Every landlord hopes their tenant is responsible, respectful and reliable, but it can be hard to know if that’s the case from just an online conversation or even an initial meeting.
Your property management company can assist you with the credit checks, employment history and their background.
This will help ensure that your tenants are a good fit, depending on your preferences or requirements.
Once you have chosen a tenant, your property manager will then handle the task of collecting the contract and the security deposit.
They will then hold that money in escrow on your behalf so that it can be easily returned to the tenant – or used to make any repairs necessary – when the lease is up.
When the lease term is nearing its end date, your property manager can reach out to your current tenant to begin the conversation about renewing the lease or signing a new one, if need be.
They can even begin looking for a new tenant if your current one decides to look for a new place.
By managing this process, they’ll make it so that you always have a tenant and are not losing money with a vacant property.
4) Tenant Management
During your tenant’s lease, it’s likely that they’ll have questions, concerns or issues to address during their tenancy.
If you’d prefer they not reach out to you directly – especially for matters that would be hard for you to troubleshoot if you don’t live near to the property – your property manager can act as the tenant’s point of contact.
Your property manager can then manage any questions or requests that don’t require your involvement, and only direct the tenant to you or relay any information on their behalf if there are matters that need your attention or approval.
Some examples include a request to add a pet or another person to the lease, the greenlight for repair work and how to proceed in the case of any property-related emergencies.
Additionally, if it turns out that the tenant is not as wonderful as you initially believed them to be, your property manager can:
- Alert both them and you to complaints from neighbors.
- Delinquent rent payments, code violations.
- Property damage that they have not communicated or remedied.
In the event the tenant is in violation of the lease and needs to be evicted, or if other legal action needs to be taken, the property manager can assist you with these less-than-pleasant tasks.
5) Arranging Maintenance
Regular maintenance on a property is of utmost importance!
Not only does regular maintenance keep your property in good shape, it helps to keep costs down in the long run. After all, there are costs attached to being a landlord.
This is especially true if you don’t live in the same area as your property or if you’re unfamiliar with the market.
In the event of needing to contract repair workers or other contractors, your property manager should already have trusted partnerships in place.
The people or companies that provide these types of services would probably be more willing to help immediately, and you’d also be able to enjoy a fair rate for the work.
When first engaging with a property management company, you should discuss your expectations for regular maintenance. Chat with them about the following:
- The vendors they regularly work with.
- Talk through how you’d like to establish an approval process for maintenance work (both in regular and emergency circumstances).
- Ask if they perform routine monitoring of the property on a monthly basis to ensure that everything is in top shape.
If they don’t and you would like for them to do this, just make that known and they should be able to arrange that service for you.
After all, regular maintenance and upkeep will keep your property not just in good condition, but will ultimately mean that you avoid many types of unexpectedly major – and more expensive – repair work.
By engaging the services of a property manager, you’ll have peace of mind knowing that your property is being well-maintained and managed.
Because of their expertise, locality and ability to respond quickly, a property management company in Malaysia could truly be an investment that is worth your while.
Learn more about renting out your property in Malaysia