Having rental properties is among the best and safest investments you can make. Not only can you actively enhance its value, but there's also a minimal chance of it depreciating.
However, for property management companies, managing a property can be a complex and demanding task that will require considerable time and resources, from accounting, marketing, and screening tenants, to property maintenance.
With so many US property companies now outsourcing their property management tasks to the Philippines, how do you know if it is the right time for you to outsource your operations as well? This article will provide you with a comprehensive look at when you should outsource your property management tasks to the PH.
Why is it Important to Conduct Property Management Tasks Properly?
A well-organized property management process not only attracts customers but also encourages them to keep availing your service. Without a solid framework in place, a property owner runs the risk of having landlord-tenant disputes, dissatisfied tenants, or even potentially letting a valuable property slip away. Here are some factors on why it is important to handle your property management correctly.
Boost In Profitability
Tackling tasks effectively can lead to a noticeable rise in rental income. When every detail is looked after and managed well, it not only helps in maintaining the property's value but can also cause its worth to climb.
Ensuring that tasks are always up to par means that properties remain in excellent condition. Regular maintenance, coupled with prompt attention to any issues, ensures that the property owner’s asset isn't just maintained, but continually improved upon.
Value Preservation
Effective oversight of tasks is crucial in keeping a rental property in top-notch condition. By diligently attending to these tasks, a property doesn't just maintain its allure, it becomes a magnet for prospective tenants and interested buyers.
Rental properties that consistently receive attention through proper tasks tend to stand out in the market. Their pristine condition is a testament to regular upkeep, which not only attracts residents but also boosts its appeal to future buyers.
Shorter Vacancies
An empty rental property means a lost opportunity for rental income. Every day that a property sits vacant, earnings are slipping away. It's essential to recognize the importance of efficiently handling tasks to prevent prolonged vacancies.
By skillfully managing tasks, property owners can ensure a swift transition between prospective tenants. This quick turnover means the property is rarely left unoccupied, ensuring a steady stream of income. Beyond just the tenant transition, it's about making sure the property is always ready and inviting for the next occupant.
Satisfied Tenants
The role of property management in improving tenant satisfaction cannot be understated. When tenants feel their needs are addressed and the living conditions are up to par, they develop a sense of satisfaction with their living situation. This satisfaction, born from efficiently addressed concerns, lays the foundation for a positive landlord-tenant relationship.
A good landlord-tenant relationship often translates into a longer-term residence. When tenants are satisfied with their living conditions, they're more inclined to renew their leases. This continuity ensures a reliable and uninterrupted flow of rental income, highlighting the importance of thorough property management.
Regulatory Compliance
Handling tasks correctly is key to making sure everything's on the right side of the law. From making sure the place is safe to live into treating everyone fairly when they want to rent - it's all covered in these tasks. And, of course, there's the paperwork like lease agreements that need to be taken care of.
By adhering to regulations and policies, property owners can avoid big problems down the line. No one wants to get caught up in legal issues, and being careful about how you manage properties can save you from expensive lawsuits or fines.
When Should You Outsource Property Management Tasks to the PH?
When starting, many property management companies handle things well on their own. Yet, over time, some realize that getting help from an outsourcing partner with expertise in property management makes a big difference. If your team is overwhelmed with tasks, it’s a great time to think about outsourcing. Here are some signs that you're ready to hand over some tasks.
Difficulty Keeping Pace
Managing an investment property can be a fulfilling venture, yet it's accompanied by a multitude of responsibilities. The role of a property management company goes beyond just owning a property; it's about juggling several tasks like advertising, screening tenants, ensuring rentals are ready for occupancy, and regularly overseeing maintenance and repairs.
Being hands-on with tasks demands a huge chunk of your time and a keen eye for detail. It's crucial to ensure that everything runs smoothly for both you and your tenants. However, if you're finding that the days seem too short for the myriad of tasks awaiting your attention, it may be signaling that you need some external help.
If you, as a property owner feel you're stretched too thin and yearn for a breather, perhaps it's time to consider seeking assistance. Outsourcing some of these responsibilities to a dependable outsourcing company in the Philippines that specializes in property management might be the ideal solution, granting you the time and peace of mind to focus on other vital functions of your business.
Struggle with Managing Tenants
Managing tenants can often be a tricky part of running a property management company. The cycle of finding the right tenant, ensuring they have a pleasant stay, and then prepping for when they leave can be tedious. If these tasks, particularly that of retaining great tenants, have been giving you a tough time, it might be time to look for some external help.
Having good tenants is crucial when a property owner owns a rental property. However, scouting for those perfect tenants is not always a walk in the park and outsourcing some of property management tasks such as these can be a game-changer for you.
The right outsourcing partner can make the process of screening tenants go more smoothly. They have the expertise to attract qualified applicants swiftly. Plus, with their assistance, you might even see a drop in the times your property sits empty between tenants.
Poor Upkeep
Handling the upkeep of rental properties can sometimes feel like a full-time job on its own. If you've noticed that keeping up with these tasks is becoming overwhelming, then perhaps it's time to consider a change. How about outsourcing your tasks to experts in the Philippines? They could be the solution you're looking for.
Choosing the right property management partner can alleviate much of this stress. They're not just there to fix things but also to anticipate and prevent potential issues. They'll handle timely repairs and checks, ensuring minor hitches don't balloon into major setbacks.
Difficult Situating Remote Assets
Owning property away from your hometown can be an exciting venture, but that also means you won't be present physically to oversee the property, address sudden issues, or get acquainted with the local regulations and tax laws. These tasks can become daunting, especially if you're trying to juggle them with other responsibilities.
Being unfamiliar with a city's tax laws and regulations is another layer of complexity. It's not just about managing the property; it's also about understanding the local rules. And if you're already swamped with other tasks, this added responsibility can be overwhelming.
This is where collaborating with a property management service provider from the Philippines comes into play. They can be your eyes and ears on the ground, ensuring that your distant property is well taken care of. With their assistance in handling intricate tasks, you can enjoy the benefits of your investment without the stress of managing it from afar.
Growing Portfolio
Managing a couple of properties might be doable. But as you add more properties to your portfolio, especially those located farther from your base, managing all of them simultaneously becomes challenging.
While adding more properties to your portfolio means more business, with every new property, your responsibilities increase, your tasks multiply, and your attention is split more and more.
In such situations, it pays to invest in outsourcing property management functions because you have people who are dedicated to managing your properties. This leaves you with more time to oversee your business and focus on more important things, like further expansion.
What Should You Do Before Outsourcing Property Management Tasks?
Now that you're familiar with when to outsource property management tasks, it's essential to make the necessary preparations before taking the leap. Below are some best practices to follow before entrusting your property management tasks to an outsourcing partner.
1. Assess Before Engaging
Start small. Begin by outsourcing basic tasks to gauge the proficiency and reliability of your chosen service provider. When you're confident in their capabilities, that's the time to assign more complex tasks. This method not only grants you access to a pool of talented professionals but also ensures cost-effectiveness.
2. Set Project Boundaries
After your first meeting with an outsourcing company, they should have a sense of how they can assist you with your property management tasks. To help them streamline these tasks, consider drafting a detailed work plan outlining the specific tasks you'd like their property managers to handle. This will not only set expectations but also help both parties stay aligned. In addition to the work plan, it's essential to track progress, and milestones, and ensure tasks are completed on time.
3. Review Expense Upfront
When you decide to outsource your property management tasks, you'll find that the cost of labor isn't as high as hiring someone from your local area. However, it's essential to remember that even though you're saving money, you should always keep an eye on the costs.
4. Select Property Experts
When you're thinking about outsourcing some of your tasks, it's essential to find true experts in the field. As you start your search for the perfect outsourcing partner for your property management tasks, have a checklist in mind. Additionally, ensure that they have several years of experience providing high-quality support to clients similar to you and that their services align with your business's specific needs.
5. Cultivate Mutual Rapport
Many companies hesitate to outsource again after experiencing the challenges that come with hiring freelance workers. However, choosing a BPO partner that specializes in property management is a totally different experience. When you find the right outsourcing partner, you'll have the chance to connect with top experts in the field of property management and establish lasting bonds with management teams that can help you form connections that aid in the success of your business.
Outsource your Property Management Tasks to the Philippines
When outsourcing property management, expertise is a non negotiable. There may be hundreds of outsourcing companies, but you need to find the one who knows how to take care of homeowners and help address their concerns.
At KDCI, our team understands the nuances and technicalities of property management, making us the ideal partner for property management companies. We’ve supported multiple property management forms and have helped them provide the best support to their homeowners and tenants.
Discover how outsourcing property to us can benefit you. Contact us today!
