The Art and Science of Tenancy Management

Anyone who owns a rental property or is thinking of investing in one will, at some point, need to think about tenancy management. Tenancy management can be a complicated business for the inexperienced property owner, encompassing everything from rental management and residential leasing services to room maintenance and repairs. In this introductory guide, we will look at what tenancy management is, why it’s important, and how you could benefit by availing of a residential leasing service for your property.  

What is Tenancy Management?

It is quite common for people to confuse property management and tenancy management. Property management of condominiums deals with the physical aspects of the property itself, such as the building and common area and rarely with privately owned units—except occasionally in the case of an emergency. Tenancy management, on the other hand, deals with individual units and the people who rent them. In other words, tenancy management is people centered.

Why is Tenancy Management Important?

Tenancy management services cover several areas of concern for residential property owners who already own or are about to invest in a rental property. Not only does such a service cover the technical aspects associated with renting out a property, but it also removes much of the stress that comes with it. This is particularly true of foreigners who may be out of the country a lot, or even just live in a different part of Thailand.

When the Property is Occupied

The handover process—when a property is ‘handed over’ to the tenant—is fundamental to any residential leasing service. From carefully monitoring the condition of the property to checking electricity meters, effective tenancy management makes this process as smooth as possible. When they move out, the premises must be inspected again. This is important, as the condition of the property may determine the deposit amount to be returned. 

Sometimes there will be areas that need repairs, and this needs to be subtracted from the deposit accordingly. To mitigate this, tenancy management services ensure that room maintenance is done regularly, and that repairs are carried out before they cause bigger and more expensive problems later. This may involve arranging for contractors to address whatever issues have arisen.

In some cases, a property may even need to be redecorated. A tenancy management company will obtain quotations and ensure the refurbishment is done to the best possible standard. This can be crucial in attracting the next tenant. It’s not enough that a tenant merely be attracted to a property, it’s important that they be retained and that they renew their lease. Tenancy managers will assist tenants—maybe with requests that were not anticipated prior to the move in—during their stay, keeping them happy and satisfied with their experience.

When tenants do have issues, it’s important that someone is there to communicate with them. Good rental management takes care of that, giving the owner peace of mind and providing the best possible service for the tenant.  

Consider lease agreements. These are complex documents, hard to write up, and when you have two parties using different languages to communicate it can be easy for an owner to find themselves in trouble if the terms and conditions don’t protect their interests. Rental payments are another important thing to consider. A company taking care of rental management for an owner means that rent is paid in a timely manner. They will also keep records of such payments. 

When the Property is Vacant

A property won’t always be occupied. For whatever reason, a tenant may decide to break the lease and leave early. Perhaps work or other business means the owner can’t get to the property on time. There may also be bills that need to be paid. Essential utilities like electricity and water can be cut off at a moment’s notice, and things like air conditioners, water pipes, refrigerators, and lightbulbs need to be checked and/or have regular maintenance, even when not in use. A tenancy manager takes care of the potential problems associated with vacancy, meaning the owner is worry-free and location independent. 

In a country like Thailand, which has a tropical climate, an empty property can fall into disrepair quickly. The appropriate room maintenance ensures cleaning is carried out and that the unit is always in a presentable condition. A prospective tenant who sees mold or is met by a bad odor upon entering a premises will be immediately put off. First impressions matter! Tenancy managers ensure the property is always ready.

Why Choose a Professional Tenancy Management Service?

Hopefully this article has illustrated how availing of professional tenancy management services could make your life in Thailand as a rental property owner easier. The modern property owner often has to travel a lot and may not have the language skills or the time to deal with tenants, contractors, or government agencies. Companies like CBRE specialize in these areas, giving owners the security of knowing their investment is always in the best possible shape and maximizing its potential. 

If you are interested in CBRE’s Tenancy Management services, please get in touch with us.