In India, the number of property owners outsourcing service management has significantly grown in recent years. Property management companies specialise in providing services related to renting, leasing, rent agreements, tenant verification, collection of rent and property maintenance. Property owners and developers hire property management services to manage their assets. In India, property management has emerged as a specialised category in real estate.
What is property management?
Property management can be defined as the supervision of a property by a third party. The property, owned by an individual or an entity, may be residential, such as apartments, detached houses, condominium units or commercial and industrial properties, including shopping centres. A property manager or a property management company works on behalf of the lender to protect the integrity of the property while producing revenue.
Property management functions
In India, several real estate agents take up the role of property managers. A resort town broker may engage in providing services to buyer’s and seller’s agents along with property management services. They may list, show and lease vacation rentals.
Property owners or developers often seek property management services while they move on to their next project. They delegate certain operations to the property management company, which include:
- Finding and screening prospective tenants for rental properties
- Marketing the properties
- Preparing, signing and renewing rent agreements on behalf of the owners
- Collecting rent
- Ensuring property maintenance, including landscaping and necessary repairs
- Assisting property owners in preparing budgets for maintenance
- Managing taxes
- Comply with landlord-tenant laws and regulations applicable in the region
Property owners pay a certain fee or a percentage of the rent while it is under management.
See also: Progressive impact of AI integration in property management
Need for property management
Property owners hire property management companies for several reasons. There is a significant demand for property management services from high net-worth individuals (HNIs) and non-resident Indians (NRIs). This allows them to manage their existing properties in India.
Another factor highlighting the importance of property management is that landlords may own several rental properties but may not have the time or expertise to maintain them. Hiring professional services enables them to manage their properties and deal with tenants.
Some property owners may have an interest in owning a rental property and gaining rental income. In such cases, hiring property managers or a firm is a practical solution.
In India, major cities, such as Delhi, Gurgaon, Bangalore, Mumbai, Hyderabad, Chennai and Pune, have witnessed the growth of the rental property market. Most owners of such rental homes lead a busy lifestyle, balancing their corporate life and asset management. For such owners, there is a need for property management companies.
FAQs
What is the meaning of property management?
Property management refers to administering a property owned by an entity or a party by a third party.
What is the meaning of property management accounting?
Property management accounting refers to the financial management and reconciliation of payables and receivables connected to property.
What is the job of a property manager?
A property manager or a property management company undertakes several responsibilities, such as finding tenants, finalising rent agreements, collecting rent and property maintenance.
What are the types of property management?
Residential property management, commercial property management and industrial property management are the various types of property management.
How much do property managers charge in India?
A broker or a rental property management company may charge 8-12% of the monthly rent as a property management fee.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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