When looking to invest hard-earned dollars, many people turn to real estate. While there certainly is value in investing in residential property, there are also a few challenges as well. One of the biggest factors to consider is overall management. Who will manage the property and be responsible for all the day-to-day tasks of ensuring that the property doesn’t have many vacancies, meets standards and codes, as well as meets the needs of the tenants?
Vionell Holdings Partnership (VHP) provides rental housing and property management for residential and commercial customers, as such it is common for us to get weekly inquiries on what we can offer our clients in terms of property management. The first two questions that prospective clients often ask are: how much does it cost and what do your services include?
Although rates vary across Canada, typical costs for full-service property management range from five to seven per cent of gross rent.
In terms of services, many companies will provide property owners with some or all of the following services as part of the monthly fees:
- Advertising and showing the vacant units to prospective tenants
- Screening applicants
- Collecting security deposits (held in a trust account)
- Completing the tenancy agreement and move in condition report
- Annual inspections
- Arranging work orders for routine and non-routine maintenance i.e. snow and garbage removal, grass cutting, as well as repairs within the units
- Collecting rent on a monthly basis and following up on arrears
- Management of the accounts payable function and purchase order system including disbursements with dual signatory controls
- Providing monthly financial reporting
- Obtaining approval from investors for large planned capital projects (roofs, exterior building renovations or suite redevelopment) with proposed timelines and budgets
- Management of tenant concerns and any Residential Tenancy Branch issues and filings
- Completion of move out condition reports and make ready work orders.
A value-added service that we offer through Vionell Holdings is the use of a national listing platform called Rent Café. This platform is integrated into our company website which allows prospective tenants to view units that are available in real time. This portal also completes much of the residential screening process and can give certain tenants immediate approval for an apartment, provided their credentials meet the criteria that was pre-determined for tenant approval.
If you are in search of a property management company and are able to come to an agreement on the terms of the monthly service fee, other important questions to ask the company as part of the screening process are:
- Do they have staff on call to handle emergencies?
- Are they licensed by the Manitoba Securities Commission?
- Are there any extra fees or service charges not included in the management fee?
- When will transfers from the trust account be deposited into my bank account?
It’s important to build a good relationship with the property management company of your choosing and ensure that expectations of both parties are clearly outlined. If you have any further questions about residential property management, please connect with Jason Roblin at Vionell Holdings.
Article by Jason Roblin. Find him on Linked here!