Let’s say you want to invest in a property that’s in another city or even in another country, for higher yield and so on, and you can’t collect the rent yourself.
Who collects the rent then and makes sure the tennant pays the bills, the real estate agency (maybe as an additional service?) or do you need a property management company?
Also, since I see that many property ads in various countries have the same property posted 10 times by different agencies, do the owners go to each of these agencies themselves and make the same agreement with each of them or how does that work?
usually that’s a property management company if i remember correctly as it requires a different set of licenses its rare but smaller rs agencies can hire someone to do that for them
as for listings a lot of places it works like it does here … the property sellers agent has it listed on various sites some charge fees and some do it as a courtesy and any seller can show it to any client whos looking for a house and set up a meeting as long as it has a mls number but some sites perfer you buy the house through them IE redfin and others …
realtor.com seems to be the most reliable place to start here in the us …
I have a vacation property that I rent out during the summer (weekly rentals). A real estate agency handles finding tenants, rental agreements, handing out keys, etc. I have a separate property manager who oversees maintenance issues as well as verifying that the property is ready for occupancy by the next tenants.
My son rents an apartment in Philly (one floor of an old row home). He deals with a real estate agent and not with the landlord directly (i.e., the checks go to the real estate agency).
It’s not like you have to collect the rent in person. When I was renting a house from a woman who lived several states away, I mailed her a check every month.
My wife is a real estate agent (not a Realtor!) who specializes in managing property for investors who own one, two or three units almost none of which are in the immediate area. Many are not even in the country.
Depending on the arrangement she will
find tenants and arrange the lease, then the tenants pay the landlord directly and end of lease vacating and cleaning is handled by the landlord. Typically the landlord will engage a cleaner/handyman to assist.
find tenants and deal with the tenants at the end of lease, inspecting the property for damage, approving the return of the deposit and arranging for cleaning and repairs before the next tenant moves in.
act as a sort of property manager, taking calls in case of A/C breakdowns, plumbing problems etc in addition to the stuff listed above.
Naturally the fees she collects are different for each. In no circumstances does the rent pass through her hands. They pay the rent directly to an account of the property owner. She does not do any accounting for the landlords either.
The last year has been interesting. Investors in China want you to evict people by hook or by crook if they aren’t paying rent, eviction moratorium or not. She’s fired a few clients.
Most of the investors and tenants are Chinese or Chinese Americans.
If you’re thinking of doing this for real, you should probably start with something locally first to learn the ropes. Renting properties come with a ton of headaches. A property management company is just a middleman. They won’t eliminate all the headaches, and they have their own headaches. Renting out property in another country is probably something left to the experts as there will be even more issues and legal mazes to deal with.
Typically a property management company is used. The tenant interfaces with them for just about everything. They can do the rent, can find new tenants, can do repairs, etc. They take a cut for all their work, so it will reduce the profit you make on the property. But finding a good property management company in the first place can be a challenge. If they scrimp and cut corners to maximize their profit, then your property and income may suffer.