Why Property Management Functions Should be Kept In-House
Time Conti Sheffield has a professional and internally trained property management team with the experience and expertise to deliver the full spectrum of property management services in an excellent manner. Our company does not outsource any of its property management services, and this article will expound on the reasons why.
Many property management firms in Perth outsource various property management activities. Among the reasons cited are to cut operational costs and improve efficiencies. However, the unseen cost of this effort is ultimately shouldered by Property Owners and Tenants, unknowingly.
To understand the case better, let us consider what are some of the commonly outsourced property management functions:
- Preparation of Property Condition Report (PCR)
- Initial Inspections
- Regular Inspections
- Final Inspections
- Lease Preparation and Renewals
- Trust Accounting
- Tenant Screening
- Tenant Interviews and Selection
- Property Marketing
Here are key considerations of what these risks may involve.
1. Organisation Culture and Value Systems
Service providers may have inconsistent value systems which are fundamental to corporate policy and this will affect how their clients are receiving treatment.
2. Privacy of Information
With highly sensitive information of Property Owners and Tenants left in the hands of a third-party provider, any breach of data confidentiality is an operational risk that the organization should carefully weigh. Outsourcing agreements should include specific terms that will protect the confidentiality of the information provided.
3. Control
Among the most important aspects of property management are conducting property condition reports, initial and regular inspections as well as the final inspection. If a property management company is not conducting these inspections and preparing the reports themselves, how can they be assured that the property is truly kept up to mark, without physically being there and carrying on these activities in flesh?
There is a huge risk of managing a property without actually inspecting it in person- and there have been cases in Western Australia where properties have been destroyed in catastrophic magnitude.
4. Dispute Resolution Process
It is important that there is a clear exit clause in place that will protect the Property Management Company and their Owners and Tenants, as well as a clear path in how disputes are settled.
Reputable property management companies specialise in managing properties and often have extensive experience and expertise in handling a wide variety of tasks efficiently. This will deliver a higher level of service in terms of overall management and maintenance of the property, understanding the intricacies that connect the smaller puzzles of the property management system.
Furthermore, property management companies that have in-house functions can enjoy the economies of scale in hiring maintenance contractors and hold them accountable for fair pricing as well as good quality of work.
Property management companies should always have their in-house team responsible for handling tenant relations, including finding and screening tenants, collecting rent, addressing tenant concerns, and managing lease agreements. They can also ensure that tenants adhere to the terms of the lease and handle any issues that may arise during the tenancy.
Risk mitigation strategies as well as service delivery standards employed by Time Conti Sheffield ensure that our Property Owners and Tenants’ best interests are protected and always kept in the heart of their business.
