Property management
Property management
- What it is
- Professional management of your property: finding tenants, maintenance, payments
- Who needs it
- Owners who live in another country and cannot deal with the property in person
- Cost
- Usually a percentage of rental income, plus separate works
- What to look for in the contract
- Reporting, authority to incur costs, termination procedure
- The main risk
- Opaque reporting and costs you learn about after the fact
In plain words
Property management is the professional management of real estate. The management company takes on finding and vetting tenants, concluding agreements, collecting payments, maintaining the property, dealing with everyday problems and liaising with utility providers.
For an owner living in another country this is not a luxury but a practical necessity: dealing remotely with a leak or a tenant who has moved out is impossible. Payment is usually structured as a percentage of rental income, while separate works — repairs, cleaning, replacing equipment — are paid for on top.
The main thing to look for in the contract is transparency. How often and in what form reports arrive, what costs the company can incur without your consent and up to what amount, how major works are approved, and what the termination procedure is. Without clear limits on independent spending, the owner regularly learns of expenses only after the fact.
When a management company is needed
What management includes
- Finding and vetting
- Tenancy agreements
- Collecting payments
- Routine maintenance
- Minor repairs
- Monitoring the condition
- Utility bills
- Reporting to the owner
- Remitting income
- The fee
- Spending limits
- Termination procedure
How to choose a manager
- 01Compare several companies
- 02Study the contract and the limits
- 03Agree the reporting format
- 04Hand over the property under a certificate
- 05Monitor the reports
What you need to know
- The fee is usually calculated on rental income
- Repairs and separate works are paid for on top of the fee
- Limits on independent spending are set out in the contract
- Reporting must be regular and documented
- Handover of the property is recorded in a certificate with an inventory
Common mistakes
- Choosing a company only for a low fee
- Not setting limits on spending without approval
- Accepting verbal reports instead of documents
- Not recording the property’s condition at handover
- Not checking who is actually living in the property
What this means for a BRIDGES client
For clients who buy a property under a programme and live in another country, we deal separately with the question of management: who looks after the property, how they report and what they can do without your consent. Without this, remote ownership turns into a source of constant surprises.
Frequently asked questions
01 /What does a management company do?
It finds and vets tenants, handles agreements, collects payments, maintains the property and deals with day-to-day matters on the owner’s behalf.
02 /How much does it cost?
Usually a percentage of rental income. Repairs, cleaning and separate works are, as a rule, paid for on top of the fee.
03 /What should I look for in the contract?
The format and frequency of reporting, spending limits without your approval, the procedure for approving major works and the termination terms.
04 /Is a company needed for long-term letting?
If you live in another country — as a rule, yes. Even with a trouble-free tenant, someone has to deal with everyday matters on the ground.
05 /How can the work be monitored?
Through regular documented reporting with supporting documents for expenses, and periodic independent checks of the property’s condition.
06 /What should be recorded at handover of the property?
The condition, contents and meter readings — in a certificate with photographs and an inventory. This protects both parties.
See also
Read next
This material has undergone editorial review by BRIDGES.
Will your property be left without you?
We will help you choose a management company and review the contract before signing.