Many factors need to be considered when you are looking to purchase a property either for personal use or as an investment. One crucial element that often goes overlooked is the quality of a condo or development’s management team. They will have a surprisingly large impact on the quality of your home life and your surroundings, such as the communal areas and, to some extent, the behavior of other residents. While this obviously has an impact on your quality of life, it will also affect the value of your property.
If you are part of the committee at a development, perhaps even just as a resident yourself, you will have a vested interest in the professionalism and quality of those in charge. Employing the service of an experienced and knowledgeable management team such as Smart Service Bangkok can save you from a series of problems further down the line as well as protecting the value of your asset.
What do property management companies do?
In a condominium, a management team will be responsible for the day to day operations of the condo. It will include ensuring that all unit owners pay their annual maintenance fees on time, organizing relevant payments, keeping money in reserve, and producing accurate financial statements that should be made available to all owners. Of course, they will also be responsible for organizing regular maintenance as well as any other repairs that may be required. It means finding contractors who will complete the work to a high standard and at a fair price.
Ensuring the smooth running of the building
How well the communities in which we live are run has, as mentioned, a significant effect on our lives. A capable management team will ensure that all community rules and regulations are enforced making your building a pleasanter environment in which to reside. They should be viewed as entirely neutral and without bias as this will prevent any problems from reoccurring. An experienced team will know exactly how to handle every eventuality with most issues being resolved without most residents even being aware of the situation.
Well managed condos and villages are far more marketable and attractive to buyers and tenants as they can be confident that they will be safe and comfortable while at home. The benefits of this sense of security are enormous and illustrate the importance of conducting due diligence on the management team before you buy a property.
Experience and know-how
Merely having a management team in place is not sufficient as sadly good intentions are no substitute for experience and knowledge. Problems and issues will inevitably occur in any development, and they need to be addressed efficiently and effectively to maintain the status quo and quality living environment. Experience is a big factor in preventing or eliminating problems and knowing what to do or who to turn to can stop any issues from escalating. Most professional companies will give their team members adequate training, so they are fully equipped to handle all situations as they arise.
Effective lines of communication
Another essential function that management teams play in establishing effective lines of communication within the property. It is particularly relevant in a city such as Bangkok where residents are likely to speak a variety of different languages. Better communication will help to create a more harmonious living environment which, of course, will improve your home life and add value to your asset. Management teams who are not multilingual cannot provide the same level of support and therefore, service. Potentially, this could also raise question marks about their overall level of competence.
The solvency of the project
A poorly managed condo will impact on the entire community, trickling down to individual units. Property prices are likely to fall as demand drops. Depreciating property values can happen extremely quickly as well as hitting income earning potential if you own an investment property. There is a strong correlation between the management of a building and the value of individual units.
Banks and other lenders are more than aware of this association and are less likely to agree on loans on poorly maintained properties. If borrowers are unable to obtain credit, it will have an impact on the solvency of the project, which is bad news all round for existing owners. It once again illustrates the importance of buying units in well managed and well-maintained properties and the consequences can be far-reaching and long-lasting.
Negotiating skills will vendors
Managers of developments are responsible for the budgets of buildings, so it is, therefore, essential that they have the necessary negotiating skills when it comes to getting the best deals from vendors. Sadly, in some countries, bribery and corruption are prevalent, so there needs to be effective measures and controls preventing dishonest individuals from such actions.
In addition to being able to negotiate favorable deals for the overall condo, the management team should be available to assist with negotiating favorable rates for individual unit owners. They should have a list of trusted tradespeople and well as beneficial terms available from suppliers of cable TV and the internet. It may seem like a relatively small point, but it can have more significance over the years.
Removal of troublesome owners or tenants
In every building and every development, there will always be some owners or tenants who could be described as "troublesome". While every effort should be made by the management team to get the offenders to alter their ways, sometimes more drastic action will be required, such as their removal. Of course, the correct procedures need to be followed to ensure that this is done correctly and within the law with relevant warnings issued and recorded.
Unfortunately, if these people aren’t dealt with correctly and promptly, it will affect everyone else living in the building. The only people who have the powers to control this are the management team, so a great deal of responsibility rests on their shoulders. Would you be confident that they could resolve the problem effectively?
The quality of a property management team can have significant repercussions on the quality of your home life and the value of one of your most substantial assets. When this is taken into consideration, it is easy to appreciate why it is vital that sufficient due diligence is conducted prior to the purchase of the property in question.