Property Management And Exclusive Leasing Agreement: Fill & Download for Free

Great property management is a big part of successful real estate investing career. Having to manage an investment property requires time, organization, social skills, and attention to details. Here lies a dilemma for real estate investors when they buy an investment property: Should they manage their investment property themselves or use the services of a professional property manager? To decide whether these are worth the money, let’s take a look at the pros and cons of a professional property manager:Advantages of Professional Property Management#1 Experience in the Real Estate MarketCompared to the average property investor, professional property management has supreme experience in the real estate market. Moreover, they are up-to-date on state and federal rules and regulations regarding landlord-tenant rights and responsibilities. Real estate investors and landlords who are new to the real estate market would most likely benefit and learn from the experience provided by professional property management companies the most.A professional property management company will keep you in check regarding all the legalities and the regulatory framework of the real estate market, meaning you’ll be less likely to make silly mistakes or unknowingly violate any laws and regulations.#2 Taking Care of Tenancy and EvictionOne of the best advantages of hiring a professional property management company is that they rid real estate investors of some of the toughest tasks, like finding appropriate tenants. Real estate investors can simply list their rental property and get tens of applications. However, that doesn’t mean they can tell the bad tenants from the good ones. Bad tenants can result in negative cash flow from unpaid rent and causing damage to the rental property. This is why finding the best tenants requires a thorough tenant screening process, which can be a pain for the average property investor.Related: Tenant Screening Process: Red Flags Landlords Should Not IgnoreProfessional property management companies deal with this issue without any difficulties. A professional property management will create the application, interview applicants, and choose the best tenant. This includes studying a tenant’s financials, recommendations, and legal situation. Not only that, but professional property management also handles the undesirable tasks of evicting tenants from the rental property.In addition, a professional property manager will deal with any issues tenants may have after they move into the rental property. They receive their calls, listen to their suggestions and complaints, ensure that tenants stick to the rules of the lease agreement, and handle emergency repairs and maintenance issues to make sure tenants are happy and satisfied.#3 Improved Services and Response TimeSome real estate investors don’t have a flexible schedule for attending to tenants and the investment property’s needs. Thus, another key reason for hiring a professional property management is that they handle all maintenance and repair tasks related to the investment property. This includes regular check-ups, maintenance, cleaning, and repairing of any damages.Moreover, a professional property manager will typically have a solid network of plumbers, carpenters, electricians, and all other handymen. This means that they provide real estate investors with prompt services in case of any required repairs, which keeps the investment property in a good shape.#4 Financial HelpProfessional property management have a good idea on how to set the right rent for the investment property that will generate a positive cash flow and maintain a good occupancy rate. Moreover, it will take care of collecting rent and ensure tenants are paying on time. Not only have that, but they also help in setting a budget in order to ensure you stay on track of your expenses. They also keep records of all the financial aspects related to the rental property and ensure you’ll have access to these records when needed.Disadvantages of Professional Property Management#1 It Is Not CheapThe main reason many enter the real estate investing business is to make money through rental income. When hiring a professional property management company, you have to pay a significant percentage of the rental income (typically 4%-12%) for their services. This will definitely affect your profit margin as you’ll lose some of your revenues, which goes against saving earnings.#2 Less Control = Less KnowledgeAs mentioned earlier, one of the reasons why a property investor would consider hiring a professional property management is not having to deal with issues like tenant screening, handling repairs and maintenance, collecting rent, tenant turnover, eviction process, etc. However, going through these processes yourself and interacting with tenants allows you to gain the needed knowledge of real estate investing.Therefore, giving a professional property management company the full control over a rental property will create a challenge of building relationships with tenants and leave the property investor feeling lost in the real estate market – simply because you can’t understand something that you have no experience with.When Do You Really Need a Professional Property Management?#1 If You’re a Part-Time Property InvestorIf you’re in the real estate investing business only as a part-time property investor while having another full-time job to worry about, this requires the services of a professional property management company. Managing investment properties is a demanding task which takes up a good amount of time and effort. If you’re working for 8 hours per day, you’ll find it hard to keep up with the demands of the real estate market and still focus on your full-time job.#2 If You’re Investing in Multiple PropertiesReal estate investors owning one investment property don’t have any trouble managing it themselves. Owning and managing multiple investment properties, however, is much more challenging and requires much more time and energy. In this case, hiring a professional property management to assist you is worth it to ensure a successful real estate investing career.Related: Are You Ready for Owning and Managing Multiple Investment Properties?#3 If You’re Investing in a Property in a Different CityReal estate investors who have purchased a rental property in a different city (or even out of state) don’t have another option but hiring a professional property management company. Due to the long distances, managing and maintaining a rental property out of your local real estate market is almost impossible. So, in this case, using the services of a professional property management is definitely worth the money.#4 If You’re Investing in Airbnb RentalsAirbnb rentals can be quite exhausting, especially when there is high demand, and guests are frequently coming in (which is ideally what Airbnb rentals owners want). For real estate investors with multiple Airbnb rentals in different locations, professional property management is an absolute must!Nowadays, with the growing popularity of Airbnb rentals, you can find professional property management companies which deal exclusively with Airbnb rentals. They handle the process of tenant turnover, cleaning, taking care of amenities, and other services that guarantee the success of Airbnb rentals.Related: What Are the Challenges of Owning Airbnb rentals?Professional Property Management: Yes or No?The answer really depends on you and your investment. If you’re in the real estate market as a part-time investor, own multiple investment properties, and invest in a different location or Airbnb rentals, then the answer is YES.Hope this helps! Don’t forget to check out Mashvisor for the latest news and guides related to real estate investing.

A good property management company cares for your investment property. But most companies here are using your property to grow personal revenue.Here are the few ways, how most of the companies lure your investment returns,Sub Lease:They don’t care how many people to accommodate, all they want is high return so they accommodate as many people as possible. This certainly damage you propertyRenting residential property to commercial purpose, Which is not legally permit but some property management does such crap without your knowledgeRenting your property to un-preferred tenant such as nuisance bachelor, this might affect your emotional sentiment towards your property.You migh not know, who is your tenant, what is the family size, what was the rent drawn by property management from tenant, What was the security deposit drawn by property management company. Most property management company doesn’t reveal true information or lack of informationFinancial:Most company draw more rent and security deposit from tenant and offset very less to you. Exact % of cut from tenant is not revealed by many.Most companies demand brokerage at every 11 months, This is absolute cheat, why do you want o pay recurring brokerage when they want to place tenant just once.Avoid hefty registration charge, recurring month service charge and renovation cost up on all like painting, cleaning, plumbing and carpentry.Solution:Never ever sub-lease your property to any property management company. This leads you to lack of knowledge about your own tenant, rent, security deposit, who is tenant, how is the property maintained etcAlways sign rental agreement directly with your tenantDeal all financial transaction directly from tenant, don’t allow any intermediate to control your investment cash flow, have your own control on this for healthy financial returns,Hire a property management company,who doesn’t sub-lease your property?who doesn’t have recurring monthly service charge?Rental agreement executed directly between owner & tenantAll financial transaction (security deposit & monthly rent) done directly between owner and tenant.seamless communicationIf you looking, this model of operanda We PGN PROPERTY MANAGEMENT is a end to end property management company exclusively for property owner.We never ever sub-lease your property, your property will be rented directly between you and tenant. We just act as co-coordinator to rent your property here.Rental agreement will be executed in the name of you and your prospective tenant. we are a sole witness in the agreementAll the financial transaction (security deposit and monthly rent) are done between owner and tenant. we act as co-coordinator and no transaction will be routed through company (PGN PROPERTY MANAGEMENT)We don’t have recurring monthly service charge like most service provider. We just charge on task basis. Our prices are very affordable and competitive in market.We provide seamless communication and open information between tenant and owner.( we provide as much information about your tenant including contact details for free communication flow)We coordinate and report all your local needs pertaining to your property at very affordable cost.Please reach us [email protected] or call +91–9742479020 (Also available on whats app)Thank you for reading…

Yes. However, you would need to indicate in the lease agreement that such exclusive arrangements are in place (assuming your question relates to a landlord tenant relationship). If a contract is already in place, some leases allow for changes via an addendum and mutual consent.Another way management companies have incorporated exclusive utility subscriptions is via the Covenants Codes and Restrictions (CC&R's). The latter option is usually an HOA arrangement, but in either case both are widely used for exclusivity contracts.