Explore the essential roles, types, and benefits of property management, particularly tailored for the Kenyan market, to understand how professional property managers can enhance and streamline the management of your real estate investments.
What Is Property Management?
Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties. They usually work for the owners of investment properties such as apartment and single dwelling units, gated communities, office buildings, shopping centers, and industrial parks.
Their main roles are to manage routine tasks delegated to them by the owners and to preserve the value of the properties that they manage while generating income.
Key Takeaways
- Property management is the oversight of real estate by a third party.
- Property managers can manage various types of property: residential, commercial, industrial, and property for special purposes.
- Property managers are generally responsible for the day-to-day operations of the real estate, from screening tenants to arranging for repairs and maintenance.
- Owners pay property managers a fee or a percentage of the rent generated by the property.
- Every country, including Kenya, has its own laws regulating the activities of property managers. Estate Agents Registration Board regulates estate agency practice in Kenya.
Understanding Property Management
Property developers generally want to move on to the next project as soon as each one is completed. Even if they continue to hold title to the property, they prefer to delegate the day-to-day operations to an outside company.
The Responsibilities of a Property Manager
The responsibilities of a property manager generally involve the following:
- Screening potential tenants
- Drafting, signing, and renewing leases on behalf of property owners
- Collecting rent
- Maintenance of properties, including landscaping
- Arranging for necessary repairs to properties
- Setting up and adhering to budgets for property maintenance
- Understanding various laws and regulations in regards to rental properties
- Marketing properties
- Supervising other employees
- Handling finances of the property
Owners pay property managers a fee or a percentage of the rent generated by a property while it is under their management.
Types of Property Management
Just as property comes in many types, so do property managers. Some firms specialize in providing management for a particular type of property, while others offer management services over a range of property types. Here are some common types:
Residential Property Management
Residential property managers in Kenya are typically hired for rental properties and they manage the rental process. They can be hired to manage:
- Single-family homes
- Short term rentals (Airbnb’s)
- Townhouses
- Apartment Blocks
- Single Apartment units
- Gated communities (Homeowners Associations).
Read: Simplifying Homeowners’ Association (HOA) Management in Kenya: A Comprehensive Guide
Commercial Property Management
Commercial property owners have different needs from those who own residential property. Commercial property management can apply to:
- Hotels
- Retail properties like shopping malls, shopping stalls
- Office buildings
- Co-working spaces where professionals rent workspaces by the day or the hour
Industrial Property Management
Industrial properties that can benefit from management include:
- Heavy manufacturing facilities
- Light manufacturing factories
- Warehouses
- Distribution facilities
- Data centers
Special-Purpose Property Management
There are also numerous types of property that don’t fit neatly into the categories above but require management nonetheless. These include:
- Workplace and facilities management
- Theaters
- Sports arenas
- Resorts
- Senior care facilities
- Schools and universities
- Places of worship
Picture this scenario: Imagine if you had to deal with repairs and cleaning all by yourself. Service charges step in and handle that, making your life as a tenant much easier. It’s like having a team of professionals working behind the scenes to ensure everything runs smoothly.
Who Needs a Property Manager?
Several types of property owners can benefit from the services that property managers offer.
Read: Why Property Management is the Solution You Need!
Landlords, for example, hire property management firms for various reasons. Some may have multiple rental properties in their portfolios and lack the time or expertise to maintain the properties and deal with individual tenants. Some owners only have an interest in owning rental properties and earning profits from them. When this is the case, they hire professional property managers. Absentee landlords also make use of property management services. Some property management companies in Kenya cater to individual landlords who rent out a single property such as a vacation or short-term rentals (Airbnb’s).
As a certified property manager in Kenya, I’ve encountered landlords who were initially hesitant to hire a property management agency. One client, who owned multiple apartments in Nairobi, found managing tenants overwhelming. After we took over, he could focus on other investments, and tenant satisfaction improved due to our prompt maintenance services and professional handling of tenant issues.
Is a Property Manager Worth It?
It depends. Managing property can be costly and time-consuming. If the cost of a property manager is less than the opportunity cost of managing properties yourself, it’s probably a good investment. However, this is an equation that every investor will have to work through for themselves.
Ask your landlord or property manager of a copy of the last audited service charge accounts. As a tenant it is your right to know where your money has been spent.
Who Benefits from Hiring a Property Manager?
Any property owner who doesn’t want to deal with the day-to-day management of property can benefit from property management. This can include a residential property owner who doesn’t want the headaches of dealing with tenants, or commercial property owners who prefer others to source and manage tenants, leases, and maintenance.
Are Property Managers Regulated?
Yes. Property management licensing requirements vary by country, but in Kenya, property management companies must be licensed and comply with Estate Agents Registration Board (EARB),the regulatory body for estate agency practice in Kenya and it derives its mandate from Estate Agents Act.
Property owners should ensure that the firms they hire are properly licensed.
Conclusion:
Empower Yourself with Simpl Property Management
Property management is the oversight of real estate by a third party, normally a professional property manager or property management company. Property managers in Kenya can manage many different types of property: residential, commercial, industrial, and property for special purposes.
Property managers are generally responsible for the day-to-day operations of the real estate, from screening tenants to arranging for repairs and maintenance, and are paid via a fee or a percentage of the rent generated by the property. It’s crucial for property owners to ensure that potential property managers are properly licensed and experienced in handling properties in Kenya.
If you’re considering hiring a property management company in Kenya, make sure they have a good track record and are familiar with local laws and regulations. This will help you protect your investment and ensure the smooth running of your property.