The property manager or real estate agency acts through a “management mandate” which is entrusted to it by a property owner. Its role corresponds to the tasks included in the mandate and includes at least rental management. As a result of this rent collection, the property manager is subject to regulatory constraints. The nature of the other tasks entrusted varies depending on the content of the mandate. Since he collects rents to pay them back to the owners, the property manager has a triple obligation, which includes:
- Holding a professional license
- Providing a financial guarantee that allows owners to be covered between the collection of rent and its repayment to the lessor
- Be the holder of Professional Civil Liability insurance
What if you wanted to manage the property yourself? Managing directly consists of carrying out all the tasks alone, from the collection of rents and the actual daily management. On average, it takes 42 hours per year for a landlord to fully manage a property. However, this duration is very variable depending on your appetite for this activity. Indeed, without serious basic notions, prepare yourself for a real obstacle course. The regulations are complex and have been profoundly modified with changing laws. Some are applicable to current leases, others to new leases, and still others according to application decrees. Managing everything, yourself has one advantage: it’s free. Be careful, however, because beyond the time spent, if this free service is attractive in the short term, it can be dangerous at the slightest glitch, and then become very expensive for the lessor.
Delegating The Service
Delegating the rental management of your property consists of asking a professional to carry out three main missions:
- Finding tenants and renting out your property
- Administrative, legal, and accounting management
- Daily work management
As the property manager’s activity is regulated, the delegated missions must be formalized through a management mandate. It is important to take a good look at the details of the missions indicated on the mandate when comparing rental management.
How To Choose Your Property Manager
Total Management: If you do not wish to perform any task and entirely delegate the management of your property, you would give them sole responsibility. Under the category of giving full responsibility to the property manager, there are two options explained below.
Large Brand: the advantage of a large brand is that, in principle, it is able to respond to all scenarios. On the other hand, its size is an obstacle to flexibility and responsiveness.
Neighborhood Agency: it is the best connoisseur in its local market, with easy contact. On the other hand, professionalism depends to a large extent on the quality of the service and the years of experience.
You can still control your property while allowing a professional to take care of the daily grind of managing a rental. If you need help getting your investment property rented and able to provide a monthly cash flow, it is recommended that you hire Centennial Property Management Company.