Do You Need to Hire a Property Manager?
Buy a property, lease it out, and earn. But is it really that simple? Sometimes, there are properties that need proper TLC.
Property management isn’t a familiar term for most Filipinos. But if you have a prime piece of property, such as a commercial or residential building to your name, and lack the know-how on the daily operations of building administration, hiring a property manager may help keep your investment intact, and perhaps preserve your property’s market value.
Edgardo T. Macalintal Jr., Associate Director, Head of Property Management at Santos Knight Frank, a property management firm, explains that a property or estate manager is “a person or firm charged with managing and / or operating a real estate property to ensure that it operates smoothly, maintain its appearance, and preserve, if not increase, its value through time.” Think of a property management firm as the caretaker of your prized investment, handling the day-to-day operations needed to run a property. “It allows the owner to focus on their core business,” Macalintal adds.
Where do you begin?
A property manager or a firm comes in to provide maintenance of the building, but prior to that, there’s much to be discussed. Macalintal explains, “For a potential client, we often start by asking the property owner about their goals, objectives, and challenges in managing the building. This way, we are able to advise them and make recommendations on the services that suit the requirement. In our firm, we also normally ask the client to allow us to conduct a full inspection of the building, prior to submission of our proposal.”
Once you and your property manager agree on the proposal, you can leave it all up to them—you will be in the loop through constant communication, along with the submission of operational reports.
The makings of a good property manager
Considering that property management is usually left to building administrators, there are a few third party professional property management firms in the Philippines. “A good property manager must have the qualities of an effective administrator, with excellent communication and people relation skills, and a lot of common sense,” Macalintal states. “Look for a reputable firm with a solid track record in the industry, and one which operates through a global platform. A firm that can provide deep corporate support is important when it comes to adherence to regulatory compliance, legal, and accounting matters.” In layman’s terms, find yourself a firm that you can hold accountable to the rule of law, just in case things go south.
Do you need a property manager or not?
A residential property, such as a condominium unit or a house that was of personal use to you will not need its own property manager. But, the money that you invested in purchasing or building a property for commercial use is no laughing matter, and preserving your investment is a must. If you don’t have the time or the technical know-how to do it yourself, hiring a property manager will ensure that your investment will be protected.
