What is the difference ?
Property management and rental management are two concepts related to the management of a property, but they cover different aspects of the administration of this property. Although there are common points between the two, it is important to distinguish them in order to fully understand their specificities and the services associated with each of these practices. In this article, DECORDIER immobilier Thonon explains the difference between the two.
1. Property management: a broader framework
Property management refers to all activities related to the administration of a property, whether it is intended for rental, sale or another use (offices, shops, land, etc.). It covers a wide range of tasks, including financial management, maintenance, contract management and relations with the various stakeholders (owners, tenants, service providers, etc.).
The main missions of property management include:
- Financial management: This concerns the collection of rents, the management of charges, taxes and insurance, as well as the monitoring of budgets. It can also involve tax optimization and investment management in order to improve the profitability of the property.
- Maintenance and upkeep: Ensuring the management of repairs, maintenance or renovation work necessary to maintain the quality and safety of buildings.
- Management of legal documents: This includes the management of leases, insurance contracts, certificates of conformity, service contracts, and other legal documents.
- Management of relationships with third parties: This can include negotiation with service providers (cleaning companies, security, etc.), coordination with condominium associations, or management of relations with local authorities.
2. Rental management: a specific aspect of property management
Rental management is part of property management, but it focuses specifically on the rental aspect of a property. It involves the administration of a property that is rented out, that is, the management of the relationships between the owner and the tenants. It concerns everything related to the rental itself: from finding tenants to the daily management of the rental.
The main missions of rental management include:
- Finding and selecting tenants: Rental management often begins with renting out the property. This includes advertising the ad, managing visits, studying applications, checking the solvency of candidates and drafting the rental agreement.
- Managing rents and charges: This includes collecting monthly rents, monitoring payments, issuing receipts, as well as managing rental-related charges (water, electricity, maintenance of common areas, etc.).
- Monitoring the condition of the property and repairs: Although general maintenance of the property is part of property management, rental management also includes the actions necessary to ensure the property complies with safety and habitability standards, in addition to taking care of repairs that are the responsibility of the owner.
- Lease renewals and departure procedures: This includes managing contract renewals, carrying out inventory reports, managing notices of departure, and returning the security deposit.
3. The key distinction between property management and rental management
The fundamental difference between property management and rental management therefore lies in the scope of action.
- Property management encompasses the complete administration of a property in all its aspects, including tenant management, but also the overall financial, technical and administrative aspects.
- Rental management, on the other hand, is a subset of property management, which focuses solely on the aspects related to the rental of the property, namely the management of rental relations and associated payments.
In other words, rental management is a specific activity within property management that can be carried out by a specialized professional, such as a real estate agency or a real estate asset manager.
4. Why use a professional for property or rental management?
Property owners, whether individuals or investors, can choose to manage their properties themselves or to hire a professional for property or rental management. The professional option is often preferred for several reasons:
- Saving time and energy: Property management, whether rental or general, requires a lot of availability and responsiveness. A professional can take care of all the administrative and technical procedures, allowing you to focus on other priorities.
- Legal and technical expertise: Housing laws and regulations are complex and evolving. Hiring an expert helps ensure that leases comply with current legislation and that the property is maintained in a state that complies with standards.
- Optimizing profitability: A property manager can help you maximize the profitability of your property through appropriate maintenance, renovation and rental management strategies.
Conclusion
In summary, although property management and rental management share some similarities, property management has a broader spectrum, encompassing all aspects of a property, while rental management focuses specifically on the relationship between owner and tenant as well as the financial and administrative aspects of the rental. Both can be entrusted to specialized professionals who will be able to provide the necessary expertise to best manage your real estate assets.
This is why DECORDIER immobilier Thonon advises you to entrust rental management to a professional: Entrust us with your keys, we will take care of the rest.
Take advantage of our offer valid until 21.12.2024: for any new management contract, we offer you 3 months of management fees and 6 months of GLI (guarantee of unpaid rent). Manage and rent with DECORDIER immobilier.
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
www.decordier-immobilier.com