With professional property management, you can earn thousands more each year
More and more landlords are choosing professional property management. Although demand for rental flats has risen in recent months, so has the time landlords spend on administration and communicating with tenants, authorities and repair contractors. A regular income requires dozens of extra hours every month, which may no longer seem so appealing. However, real estate companies offer rental management services that can even pay for themselves.
At least, that is what the figures from Bohemian Estates suggest. The company has been operating in the Czech Republic since 2006. It specialises in identifying investment opportunities for clients and property management. Bohemian Estates currently manages over 2,000 flats with a total value of CZK 15 billion. Its managed portfolio also includes flats intended for short-term and long-term rental. “These two types of rental should be viewed as two separate fields. Short-term rental requires a different approach and has its own specifics; tenants change quickly, but it can generate more income. Long-term rental is also time-consuming, however, and we are seeing growing demand for this service,” says David Novotný of Bohemian Estates.
Property owners pay the company a commission for the service, but the calculations speak for themselves. With a professionally managed property, you earn more, and the service pays for itself. “The flats we manage are occupied more often, and there is rarely a gap between tenants. When this does happen, we usually find a new tenant within two weeks. We also screen tenants, so clients need not worry about those who might fail to pay. We do not let a flat to someone who will postpone paying rent for months,” adds Novotný.
Thanks to its many years of know-how, the company can let a property at a higher price. “That does not mean we inflate the rent unnecessarily. We set a fair price that reflects the location, layout, fittings and competing offers. This is often the issue: owners do not know what to take into account when setting the rent and set it unnecessarily low,” explains Novotný.
On average, you earn CZK 13,205 more per year from a managed property than if you let it yourself. The saving should also be measured in terms of time and energy. The company takes care of all administration and communication with tenants. It also arranges utility transfers and deals with repairs and maintenance in the flat when needed. The property owner does not need to deal with anything at all; they simply watch their property generate income.