With the increasing population and therefore the increasing demand for housing, real estate has rapidly grown over the recent past and according to latest research, it is one of the best investments of the modern era. Rental apartments have become the main type of rental properties in real estate because of the increasing demand for housing which has consequently made housing very expensive making consumers prefer renting houses to buying them Caprent Edmonton. Because of the complexities surrounding the management of rental apartments, landlords are increasingly entrusting apartment rental companies which are a type of property management companies to manage their rental apartments.
Apartment rental companies do not own any rental apartments but manage rental apartments on behalf of landlords who then pay the companies a commission for the duties they undertake which include managing the rental calendar, ensuring timely client turnover, collecting rent from tenants, solving tenants’ or guests’ issues, maintaining the property, an solving any issues involving renting of the apartment. Apartment rental companies have proven to be popular among landlords who prefer being the ‘passive landlord’ who are not actively involved in the management of their rental properties. This might be the case if the landlord has other businesses or other commitments. Even for landlords who have no commitments or other businesses, apartment rental companies have proven to be advantageous as they relieve landlords of the cumbersome tasks they need to perform.
Some of the advantages that landlords enjoy when they have apartment rental companies manage their apartments include:
- Guarantee that the rental apartments will be occupied most, if not at all times- this is because the apartment rental company is only paid commission from tenants’ rents. This incentivizes the company to actively look for new tenants.
- Lighter workload- the apartment rental company takes care of majority of the things required to keep the rental apartment up and running. This usually comes at a fair cost of about 10-15% of rent paid by tenants although the exact amount varies from one company to another.
- The apartment rental company also takes care of other important aspects of the business such as marketing and other forms of value addition to the rental apartments. This ensures the rental apartment’s visibility to prospective tenants.
To the tenants as well, apartment rental companies offer some advantages over landlord managed apartments such as uniformity in payment policy, good customer service, and variety of apartments that are on offer because apartment rental companies manage many apartments and for prospective tenants asking questions such as, “Are there apartments near me?” should consider apartment rental companies.
However, there is a downside in engaging apartment rental companies, both for tenants and landlords. For landlords, they are vulnerable to fraud because some apartment rental companies can charge them for work not done, overcharging for work done or reporting that some apartments are vacant when they are actually occupied. Landlords that are usually absent from the apartments are vulnerable to such fraud and it is prudent for landlords to regularly check on their apartments. For larger apartments, it is difficult to spot the fraud and this calls for an auditor to audit the financial books which is an added expense. For the tenants, apartment rental companies do not offer room for negotiation in case they are not in a position to pay rent. This makes them to be kicked out, often without notice which is contrary to the case where landlords manage the apartment and they usually offer more time in such situations. Another con for tenants is that apartment rental companies do not offer personalized service and attention as compared to apartments managed by their owners.