Mastering Property Management: Essential Tips For Landlords And Investors

As a landlord or an investor, managing property has its own set of complexities. They are both rewarding and daunting.  While some struggle to find tenants who abide by the rules, others find it difficult to adhere to legal obligations. Many factors can be governing while being non profitable to the owner. You need to maintain a balance between the rules resulting in profit and getting friendly tenants. Harmony and peace are required while dealing with such sensitive matters.

This blog will help you understand the best property management best practices. These will empower landlords like you to effectively manage your properties, enhance tenant satisfaction, and optimise your investment portfolio.

Let’s dive into the detailed explanation of strategies which will help landlords to the maximum extent. 

Property management in India has come a long way, evolving from a more informal system to a professionalised industry. Here’s a glimpse into its key milestones:

Timeline – 

Early Days (Pre-Independence):

  • Informal Management: Handling basic management tasks was perfectly managed by the individuals. Caretakers or family members were responsible for property management. No strict laws or rules were mended for landlords or the tenants. These arouse the security concerns.
  • Focus on Rent Collection & Maintenance: Collecting rent on time and maintaining the property was their major concern.

Post-Independence (1947 onwards):

  • Rise of Urbanization: Urbanisation in high levels caused a high rise in rentals throughout the country. That led to a need for professional agreement and management.
  • Emergence of Management Firms: Tenant screening, background checks, identification documents and rent collection receipts came into existence. Managing and maintaining dates for each and every deed came into picture.

The Late 20th Century (1980s-1990s):

  • Focus on Legal Compliance: Slowly awareness was growing amongst all sets of people. The landlords and the tenants were following guidelines set by the government like 5%to 10% rent increase every year. Focus on legal compliance documents and practices spread like fire. 
  • Limited Technology Adoption: Huge amount of paperwork was required as technology was not so developed at the moment.

The 21st Century (2000s onwards):

  • Boom in Real Estate: The Indian real estate market boomed. Professional management services surged. It was a golden era for the landlords. All the rules were set and electronic media was used for collecting all saving data electronically.
  • Rise of Specialization: Residential property management and commercial property management split at this time. These specialised property management companies would cater to different needs, one at a time. 
  • Early Tech Adoption: Streamlining of tasks, documentation were introduced throughout the system with ease. Software solutions emerged like little flower buds everywhere in the country. Communication and accounting became essential.

The Present (2020s):

  • Tech Revolution: The PropTech (property technology) sector is rapidly transforming the industry.
  • Focus on Online Services: Online platforms for rent payment, maintenance requests, and communication are becoming the norm.
  • Data-Driven Management: Data analytics are being used to optimise rental pricing, predict maintenance needs, and improve tenant satisfaction.

The Future:

  • AI and Automation:  With improved effectiveness and efficiency AI and automation help sort a major drawback of trustworthiness. All the dashboards, software frameworks made it available to normal people with no software knowledge. UI/UX improvements have made it accessible to everyone.
  • Focus on Sustainability: Sustainable property management practices have become really important.
  • Greater Transparency: Increased transparency and communication between property owners, property managers, property distributors and tenants are already in place and enhanced further in the future.

7 Tips for New Generation Landlords and Investors

Once bought the land don’t keep it idle

Landlords must keep in mind that gone are those days where the property is just bought, kept like that for a long time and then just passed on to the next generation. The times have changed. There can be different scenarios applicable for the landlord. These are:

  • Manage the property
  • Rent/Lease it out
  • Build a residential property and sell it out
  • Sell/ lease for commercial use
  • Sell the property and invest money in other property

A property can just turn into an asset or liability based on how you manage it. Define your asset based on your cost of HRA. Calculate how much you pay rent annually. And if you buy a property and a similar kind of amount is enough to buy a decent range property. It’s a great deal. But if buying a property drains you out or exhausts every penny of yours. It becomes a liability. It just doesn’t return any profit to you.

Maintain balanced relation with the tenants

Don’t keep your property free just rent it out. Register on any app like and mention a few details, add pictures/videos and write facilities. Let out. Giving the right information helps in retaining the relation with tenants and hassle free transaction of rent every month without too many complaints.

Communication through documents

Well documented rental agreement is the key to safe and secured property management. If leasing your property for a Franchise or commercial business. Communicate all the rules, guides, through documents. People tend to forget what was discussed but can’t forget what the document has engraved on it. It’s a proof for every discussion. For example if it’s a residential property or a commercial one or ground floor is commercial and above it every flat is residential.

Track Each and Every Maintenance or Repair Cost 

Tracking when and by whom any repair word or maintenance task was proceeded can be useful in situations where no one blames each other for the bad work done. Analysis can be done based on frequency of repair work as well.

Pay Your Taxes and Be Up to Date

Always pay your taxes on time, otherwise it can double and get your property penalised within no time.

KYC/Background Check

Before leasing/renting or selling any property, it’s mandatory to go through KYC and background check of each individual. You should be aware of every person living on your residential property. You never know if the person is a criminal/an illegal immigrant, refugee from a different country or a normal person with no criminal background.

Be Aware of Law the 

Abide by rules enforced by law and order. Make sure the owner and the tenant both knows the rules and regulations and the law. They should be aware of what are the responsibilities of the owner and what are of tenants.

Be aware, cautious and be safe! Property management is no easy task. Yet it bears fruits for a happy future. In this blog, we discussed how an owner should be aware of the tenants identity, make use of KYC and background check. Abide rules and make the process smoother for both landlords and tenants.

Happy managing your precious property!

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