Property management, what on earth is it? This particular aspect in real estate isn’t one that is commonly heard of in Malaysia. So before we begin this lovely journey of what a state property management is in Malaysia I do believe an introduction to the job scope is required. Property management is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition. These operations are sought after by a property manager. A property manager is hired by a third party to oversee and perform the daily operations of a real estate property. As a liaison between the property owner and the tenants of the property, a property manager ensures that both parties are satisfied with the property and its daily operations
If you know a real estate investor, you have likely heard about a problem he/she experienced with a property manager. Property management is a difficult business. Nonetheless, it is still a service-based industry and your property manager must always have your best interest in mind. You want them to maintain or (hopefully) exceed the industry standards. It is also important to recognize when what may or may not be outside of a property manager’s control. But when things go wrong, you want a manager that is on it!
No Matter whether it’s a yearly tenancy or AirBnB service, property managers provide the owner with a “hands off” experience.
Sad But True!
Unfortunately this isn’t the case in Malaysia; it’s not the property managers that act as the caretaker of the property investment but the Real Estate negotiators that executed the initial sale of the said property that runs the show. So that leaves a not so qualified individual to handle your investment but honestly that is the least of the worries that owners should be having. The problems faced by some owners are usually time related because they either live to far from the investment or simply preoccupied with their respective professions, whilst this is the main reasons to hire a property manager the owners have chosen the easier and simpler option and which is to hire the acting negotiator to manage their property.
This is a task that will be done purely on loyalty and trust by the real estate negotiator since the goal or concern of a negotiator is to obtain the premium he/she receives from making a sale/rental of any property. The agent has no rhyme or reason to further continue serving the buyer as his goal has been completed but out an act of “good faith” towards the property owners the negotiator continues to manage the investment. Some owners have a verbal agreement with their real estate negotiators that they(owners) will collect the rental of the investment property on a quarterly basis and not on a monthly basis with the justification that it is too much of a hassle to keep track on the transactions on a monthly basis to they(owners) prefer a quarterly approach. There have been extreme cases where property owners find the acting negotiator disappears when it’s time to send the quarterly rental to the owners, since there wasn’t a binding agreement with the negotiator or the owner that legalized their agreement the real estate negotiator skips away freely because at the end of the day it’s only proof through the word of mouth. Not something that would hold up in court hence not something that is traceable but even knowing that this is a possible outcome, majority of the property owners still hire real estate negotiators instead of property managers which simply
