Property management companies target property developers, as their main clients. They offer several types of services to the said property developers. The property developers in question here are both those who put up buildings of various types for sale and those who put up buildings with the intention of renting out the units in them. The management companies tend to come into the picture once the buildings are complete. The actual building is done by folks who are collectively referred to as building contractors, and once those are through with their work, the real estate management companies take over, to provide the services we will be shortly looking at.
The first service offered to property developers by property management companies is that of finding (‘serious’) buyers for properties. This particular service is essential to property developers who put up buildings of various types with the ultimately goal of selling them at a profit. You come to realize that finding buyers for properties is not exactly easy. It takes a certain level of advanced marketing skills to convince someone to put his or her entire life savings into the purchase of a property. It similarly takes very good salesmanship skills to convince someone to take a mortgage which he or she will probably be repaying for the rest of his or her life, to purchase a given property. Many property developers are cognizant of the fact that they lack these advanced salesmanship skills. They therefore endeavor to work with folks who have such skills, so as to ultimately be in a position to sell their properties at the right prices, and without having to wait for too long. The folks who run the real estate management companies we are focusing on tend to have such specialized marketing skills, which they are usually more than willing to avail to the service of the property developers, for relatively modest fees.
The second service offered to property developers by property management companies is that of finding (‘suitable’) tenants for properties. This service is essential to property developers who get house built with the objective of renting the units in them out, as opposed to selling them. Now getting tenants who are serious and ready to pay the right rents is not always easy. It can be a time consuming and rather tiring venture. Many property developers are unwilling to put themselves through so much strain in search of tenants. They’d rather have someone else do that work for them, and that ‘someone else’ turns out to be the property management company operative.
The third service offered to property developers by property management companies is that of maintaining the properties. The nature of properties is such that they tend to require repair from time to time. Other things like ensuring that the plumbing is working in the right way, that the lawns are well kept, that the hedges are trimmed and so on can be very involving. Many property developers would rather have someone do this sort of work for them, at a fee – and the property management company operatives normally turn out to be very helpful with these sorts of things.