Property is indeed one’s most valuable possession. It requires professional and proactive management to nurture it. To ensure that a property always remains in better shape and its value doesn’t deteriorate, it is of paramount importance to choose an experienced, transparent, licensed, and responsive property management firm.
Selecting the right property management (PM) firm can be an overwhelming task, especially for the first time. There can be multiple questions coming to the mind such as – what should be their experience level, regulatory requirements, fees, client’s list & testimonials, reviews, etc. This article will clear all your doubts once in for all.
Here are some tips on choosing a great property management firm:
Property Management Experience:
Experience always speaks louder than words. The number of years of relevant industry experience property management (PM) firms possess always holds an upper edge and is an ideal way to evaluate its potential. It is vital to go through its list of clients served available on the website or in the company’s publication. This will provide an idea on whether the property management firm only possesses experience in serving clients with similar requirements or is also well-versed in catering to the dynamic and inimitable requirements of real estate clients from diverse backgrounds.
Technology has played a vital role in facilitating easy accessibility and keeping the property management firms closer to the tenants. There is no need for the tenants to visit the office as they can communicate with property management firms through phone, WhatsAPP, email, and electronic communication means.
Leveraging its state-of-the-art customer communication platforms, Kaizen AMS provides 24/7 Support via calls, emails & WhatsApp. We offer real-time reporting & solutions for all maintenance-related issues to elevate the standards of customer experience. Kaizen AMS simplifies the move-in & move-out process for the tenants through automation by building a seamless process for all other requests via. its innovative online platform. All of our internal & external business stakeholders can connect with us via. phone, Whatsapp, email, or by scheduling a video call with the Experience Manager.
Spending time & money on research might sound like an extra cost; however, it is indeed an undeniable fact that this exercise can avoid choosing a wrong property management firm.
Prioritize a PM firm which has more experienced Community Managers. Visit LinkedIn and select the name of the property management firm. Then click on the employees’ profiles to find out the details on their work experience in serving various communities and whether it matches your requirements. Selecting a property management firm with an experienced staff is some sort of assurance of receiving quality service with minimal complaints from your tenants.
It is also crucial to research the staff turnover. A high staff turnover reflects that experienced staff rarely stays with the company. This dilutes the experience of overall staff, which can take a toll on the level of services offered. It also makes sense to do a cost-benefit analysis of the fee charged by the property management (PM) firm and the level of services offered.
Devoting time to investigate these facts will reflect on the delivery of the service and can save you from making costly mistakes.
While selecting a property management firm, it is recommended to check whether the firm complies with the guidelines set by RERA – Dubai Land Department.
To stay tall in terms of compliance, a property management firm must possess all necessary certificates such as – tax compliance, business registration, insurance certificate, and other local authority requirements. Any extra professional affiliations and certifications such as International Standard Organization (ISO) will be a plus.
Reporting is a key requirement for business engagement. The property management firms which release business reports on a timely basis have better chances of securing more business from bigger & compliant real-estate firms. The primary objective of these reports is to make all relevant stakeholders aware of its current situation with a strategy to improve the numbers in the near future.
Some of these business reports include –
- Tenancy reports: these reports offer regular updates on occupancy, turnover rate, and pending notices
- Financial reports: these reports provide information regarding the business margins, a summary of rent collected, agency fees, other service fees, and managing expenses
- Ad-hoc reports: these reports offer insights on industry trends and the factors which can act as disruptions. Thus, it facilitates in making quick decisions.
Go through Internet Reviews & Testimonials:
Based on internet reviews, real estate firms evaluate which property management firm matches their requirements even before initiating the conversation. It is important to check Google reviews and Yelp reviews of the clients they are working with or have worked with along with comments across social media platforms. They both work best as a valuable resource while comparing multiple companies at a time.
The information on the quality of work delivered by the property management firm can also be collected through personal or professional references or relationships. This is one of the most viable & reliable ways to analyze the capabilities of the property management firm.
Thoroughly Review the PM Agreement:
Property management agreement clearly outlines the business relationships between a client & property manager. The document offers briefs on the services offered by the property management firm, the owner’s responsibilities, contract duration, and termination clauses.
The property management agreement must clearly explain the insurance protection policy – including to what extent the firm is insured. Whether the PM firm has just appropriate general liability insurance, or it possesses property-casualty insurance, errors, and omissions (E&O) policies, etc. Property management agreement must be read carefully and required changes must be made before signing off. It must be made sure that the document has no disagreeable clauses.
Property Management Fees:
Property management fees must be reasonable to offer quality services with better margins. It is important to decide which payment model should be followed as some property management firms charge a fixed fee, while others charge a percentage of rent collected, or a blanket fee based on the business needs. Some companies also charge a commission-based rate combined with other incentives paid for excellent services offered to the tenants.
Financials of a property management firm play a critical role in its selection. Selecting a financially sound PM firm ensures that there won’t be challenges in employees receiving their salaries on time and are better taken care of. This will boost their morale and will also result in the client receiving improved services.
On the contrary, selecting a property management firm with poor financials reflects that its employees are or might be in near future face challenges in receiving salaries which will lead to low morale, poor service, unexplained delays, and other bad traits. It is also an invitation to fraud and other unwanted events which will ultimately have an adverse impact on the brand image.
While selecting a property management firm, it is important to review its balance sheet, cash flow statements, P&L statement, liquidity ratio, acid test ratio, and audited books of accounts.
Reasons to Choose Kaizen AMS as Your Property Management Firm:
Here are the top reasons to Choose Kaizen AMS as your preferred property management firm:
- 15 years of experience in offering end-to-end solutions in Property Management, Owners Association Management, Community Management, Lease Management, Handover Services and Investment Advisory
- 13000+ units managed across the UAE
- Developed list of ERP, CRM, and Maintenance platforms inhouse which easily gets integrated with client’s systems
- Proud corporate member of the U.S. Green Building Council
- ISO 9001:2015 certified company
- Some of the highest occupancy rates in its managed properties across U.A.E
- Proud winner of a list of prestigious industry accolades such as – Superbrands, multiple awards including Gulf Real Estate Awards for ‘Best Employer in Real Estate’ and ‘Best Consultancy in Real Estate’ –2018, ‘Best Owners Association Management Initiative’ & ‘Best Media and Communications’ -2019. Additionally, the most recent include being featured on the Influential Companies of 2020 list by CM Today publication.