Property management. You’ve heard about it and some of your relatives and friends are even used to this service. Yet, you don’t get the full scope of this fast-growing activity of the real estate and property investment industries. Well, this article is for you as we are sharing 8 things to know about property management in Mauritius.
So, what is the Property Management?
Let’s try to make it short and simple: property management is the operation, maintenance and oversight of a property which is often owned by another party (this party could actually be you).
The role of a property management company or of a property manager is quite diverse: it can include anything from getting involved with the pre-tenancy requirements to handling the property maintenance and repairs.
In the real estate sector, the main priority of a specialised management company is to make sure that the property is maintained to a high standard and act as a third party between the landlord and the tenant, may it be on a short-term or long-term period.
What services Property Management companies offer?
The services provided by a property management company are broad and multiple. Most companies in Mauritius offer a "full service" option, which generally includes all or most of the following responsibilities:
take care of the property (housekeeping),
advertise and market the property online,
show available space and lease the property,
act as the first point of contact for tenants,
collect rent and fees from tenants,
handle interior and exterior maintenance and reparations
handle general accounting and banking needs,
purchase supplies,
pay invoices,
coordinate contracts,
help to create and maintaining optimised returns on investment
and administrative tasks (reporting income statements, annual or occupancy reports - all while managing and keeping to a budget).
Takeaway: A good property management company provides all the necessary functions to run a property without involving its owner. This allows owners to transfer all the responsibilities of managing a property, while still maintaining the financial benefits of their investment.
Why should you consider Property Management?
- If you do not have any property asset (yet)
Have you seen the glut of beachfront apartments and villas in Mauritius? The recent development boom and subsequent economic downturn with the Covid-19 have made owning any rental real estate a valuable investment asset.
Today is the right time to invest in countries like Mauritius and rental property management might be a smart way to manage today’s market. Do you want to know more about investments in Mauritius? Read the interview of Pierre-Yves Maria, Marketing Manager of HORIZON Properties, who shares his analysis of the Mauritian real estate market.
Back to our topic: why should you consider property management? Hiring professionals for the management and rental of your property means being guaranteed a stress-free ownership experience.
You read it well, while you enjoy the benefits of being an owner, property specialists handle all the communication with your current and prospective tenants as well as .all interactions with maintenance suppliers, banks, syndic, etc.
- If you own a property but do not have the time/expertise to manage it
Many owners have invested in a property asset but lack the time or expertise to maintain it and interact with tenants. Other owners and absentee landlords’ only have as interest, the returns on investment of their property. In these different cases, owners can recall the services of professionals specialised in property management services.
The professionals ensure that the returns on investment are optimised for the owner. Aside from the rental management of the property, the company also handles all the daily tasks to keep the property maintained and running, such as housekeeping and check-in.
Takeaway: Rental property management is an easy solution for property owners who have not the time or experience to successfully run an investment property.
What ROI should I expect on rental property?
As numerous things when talking about property management, the answer is often “it depends”. Projections are made when discussing your property agreement: you will be given an overview of your income and the return you can expect if you decide to rent your property. These projections are based on the property management solution you choose but also on your asset; it depends on its type (apartment, duplex, penthouse or villa), its location, superficies, etc.
What are the average fees for Property Management services?
The service fee depends mainly on the scope of responsibilities you request from the property management company. Some owners may want to take an almost complete ‘hands-off’ approach while others may only want to delegate certain tasks and functions to the company, so fees vary from an owner to another.
Fees also vary by the size of the company and the estimated man-hours involved in providing property management services. Some companies (like HORIZON Properties) specialised in this activity count dedicated on-site managers in their team, who oversee multiple properties and provide 24/7 availability to tenants for emergencies, more hands-on management and flexible scheduling.
How many Property Management companies are there in Mauritius?
The service of property management and development of properties in Mauritius, as integrated, is not found everywhere and we can count only two to three companies in this field. We are glad to be among the leaders of this industry and to offer a 360° integrated solution - or like we call it the “Zero Stress Experience” which consists of assisting owners from the purchase of their property to their management and maintenance.
How do I know which Property Management company is best for me?
Look for a property company which has general knowledge of the market as well as experience in areas such as financial analysis, maintenance, leasing, sales and marketing, but also state laws and relations.
Also, you may trust word of mouth regarding property management companies: the more you hear positive feedback about a company, the more likely it is a good one!
Do I really need the services of a Property Management company?
You need the services of a property management company if:
you have neither the time nor the expertise to manage your property,
you have performance goals,
you want an optimised return on investment,
you do not want to take care of the administration side of the management of your property
you do not want to handle interactions with tenants or third parties,
you want a stress-free ownership experience.
Do you need the services of a property management company for your real estate property? Would you like more information on property management in Mauritius? Contact our experts or follow us via our Facebook page.