Property Management - Enlist The Hague Real Estate Services

The Hague Real Estate Services is a full-service NVM real estate agency based in The Hague. In addition to renting out homes and luxury apartments in the higher segment, we also specialize in property management. In this blog post, we provide insights into property management and answer questions such as: Why hire a property manager? and How do you recognize a good property manager?

What is Property Management?

By utilizing property management, you outsource the management of your property to a third party. Property management can be interesting for both private property owners and businesses. Property management encompasses various forms, including technical management, commercial management, administrative management, and financial management.

Why hire a property manager?

As a property owner, there are several motivations for not being involved in your property on a daily basis. The following reasons are commonly mentioned:

• Lack of time or inclination
• Lack of knowledge about laws and regulations
• Property management is not a core business
• Private individuals may want to save on taxes with real estate but lack expertise in management
• Ensuring proper maintenance

What is included in property management?

Property management includes:

• Maintenance management
• Project management for renovations
• Administrative tasks, including insurance management
• Collection of rent payments

The property manager handles the complete property management. It is often possible to hire a property manager for one or more of these services.

How does property management work?

A professional property manager manages your home in property management. You may need to work abroad or may own multiple properties. The property manager takes care of all concerns related to your home and is the primary contact for the tenants of your home or apartment.

The property manager interacts with both private property owners and corporate property owners, as well as the tenants. Various situations can arise with tenants or the need to find new tenants if you rent out your property. Tenants often require someone to contact in case of emergencies, such as a leak or a blocked drain. Much of this work is outsourced to property specialists who have a broad network in the real estate world. This allows them to quickly find new tenants, perform financial transactions, and respond promptly to issues in the rental property.

Financial Management

Financial management is also known as administrative management and involves all financial actions necessary for property management. Examples include:

• Rent collection
• Rent indexing
• Service charge reconciliation
• Financial annual overviews
• Sending reminders

These are not the most enjoyable tasks for a property owner, especially if you own multiple properties. Often, these tasks are outsourced to a property management company.

Technical Management

Technical management of a property is self-explanatory. It refers to all aspects related to the maintenance of real estate. The property manager is the primary contact for your tenants. The tenant can contact the manager, for example, for a leak, blockage, or other issues. The property manager then arranges for a plumber or other specialist.

Commercial Management

Commercial management involves all actions necessary for renting out the property. This includes setting a correct rental price, placing advertisements, tenant screening, and ensuring compliance with the lease agreement. The property manager often has a large network to find tenants. Effective commercial management means minimizing the vacancy rate of the property.

Costs of Property Management Outsourcing

The cost of managing property can be structured in different ways. It can be a percentage of the monthly rent, often around 8%. Other property management companies use a fixed monthly fee. For finding new tenants, an additional commission is always charged. This commission is usually a one-time fee based on the entire monthly rental price.

How to Recognize a Good Property Manager?

1. Specialized Knowledge: A reliable property manager has specialized knowledge in the real estate industry. Property management is a separate and specialized field within the real estate industry. A good property manager needs to have specific knowledge about a very dynamic market. Institutional and private investors often do not have the necessary expertise in property management, making it difficult to manage real estate wisely, correctly, and safely. The Hague Real Estate Services can assist you in this regard.
2. Well-Organized Property Management: Hiring a reliable property manager ensures that much work is taken off your hands. A good manager takes care of all aspects of property management for you, making the property profitable without you having to worry about it.
3. Property Manager as the Primary Contact: You do not have direct contact with your tenants. The property manager takes care of all communications with the tenant. This person is the primary contact for the tenant.