The real estate industry across the globe has witnessed rapid boom in the past decade, owing to a plethora of factors like heightened buying powers of the buyers, mass population influx and hence the demand for basic housing and huge inter country migration. Synonymous to many other industries, the real estate industry as well has not grown in solitude, and have contributed to the growth of many business concepts and ventures.
One of the most prominent by products of the real estate industry is the growth of agencies, called as Property Management Companies.
Property Management Companies are the agencies which facilitate the process of buying, selling, building or renting out of commercial, residential (and to some extent, even agricultural) without any hassle. These companies serve as a bridge between buyers, sellers, builders and investors.
Many property management companies carry on their job without charging any additional brokerage fee, which is a boon in disguise for everyone who wants a bit of the real estate market.
In this article, we will be discussing the pros and cons of hiring a property management company for all your real estate needs, one definitely weighing more than the other.
Let us look at the pros first-
- Hiring a property management company means that there is someone else hired to take all your stress. One can literally sit down and relax while the professionals at the company do the job for you.
- A professional help means that there will be more options on the plate. While it is just not feasible for a person to venture every option, a property management company makes sure that you get the best of the lot, while screening all the options.
- Property management companies are result driven, and hence they make sure that while signing a deal, the background checking is done profusely. With the hand of a company over your decision making process, you can be sure that everything is checked and re-checked, leaving no-scope for cheating or misunderstanding.
- Without the presence of property management companies, the real estate market will be flooded with real estate brokers- sometimes authorized and many a time unauthorized. Hiring brokers not only burns big holes in the pockets of both the parties, it is risky as well, because one can never be assured of the legal existence of these brokers.
Though the list of pros can go on and on, no venture is devoid of cons. So let us look at the cons now–
- It has been more than a decade that the real estate industry saw a boom in the country, and not much later the trend of property management companies started. However, even after so long, these companies are majorly located in Tier 1 cities. Thus, the real estate business of Tier 2 and Tier 3 cities, and even rural areas are hugely inclined towards real estate agents or brokers.
- Many a times, the options laid by the property management companies are priced exorbitantly, as they want to be associated with brands and names that will help their growth. However, this does not help a majority of the middle-class population and, just like always, they end up depending on agents and brokers.
So this is our list. Let us know what you think about it.
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