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At moments like these, one should turn to a property manager. Acquiring such services would reduce the burden of maintaining a property significantly, this is achieved by ensuring that one’s property would successfully generate yield.

Property management is essential for all properties as this ensures that a particular property is kept in a favourable and optimal condition for end users. Property management also results in consistent maintenance thus, increasing the capital value of one’s property.

This service is provided by licensed individuals or companies across Malaysia. The core job scope is to ensure smooth day to day operations of a property, along with overall maintenance, upgrading works and the supervision of different service providers so that the property serves its function for all its occupiers.

Property management begins at the planning stage of a property, then moves to completion and through to the future handling of any property project. It is a key criterion that plays a major role in the success of a property.

Previn Singhe founder and chief executive officer of Zerin Properties tells, “think of it in this manner, “your body is your temple”, we understand from this popular quote that it is imperative for us to keep our body and mind in a proper and healthy manner, for us to enjoy our lives without any hiccups – and this directly applies to properties as well”.


Property Control Centre

Property managers usually deal with Joint Management Body’s (JMB) and management corporations (for stratified properties) as well as directly with homeowners and tenants aside from individual entities owning or renting commercial and /or industrial properties.

“In Malaysia, stratified properties are required by law (Strata Management Act 2013-Act 757) to appoint a licensed property management company to oversee the day to day operations of the development.

Previn states, “this in accordance with the new circular from the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVEAP) whereby, all property managers must be registered and licensed by the board to carry out their duties legally”.

Commercial buildings which include office spaces and retail stores also require some sort of management, as well as, industrial facilities.

However, there are also individual units that opt for property management services to ensure the property is managed alongside tenancy management – popular with foreign investors and/or high-end residential property investors or commercial investors,” Previn explains.

There are several solutions offered by property managers in Malaysia which include;

1. Billing, collection of maintenance fee/sinking funds, assessment, quit rent and/or rentals.

2. Monthly report of cash flow, debtors ageing, income and expenditure.

3. Evaluating and supervising of all contracts and service providers such as cleaning, security, pest control and landscaping.

4. Conducting monthly meetings with clients on the progress of upkeep and maintenance, budgets and cash flow.

5. Detailed monthly reports on the overall operation of the property.

6. Mechanical and electrical support (ACs, lifts, plumbing and electrical works).

7. Detailed operation plans, preventive and routine maintenance on M&E equipment.

8. Due diligence review for purchases – current state of the property.

9. Design development - from the inception of property development to ensure sustainability and to develop a good product that can be maintained efficiently and effectively.

There are two types of property management appointment in Malaysia and these include comprehensive and non-comprehensive appointment. The non-comprehensive appointment is used widely (especially for stratified properties) which translates to a common practice, whereby all maintenance is charged based on a “back to back” basis to the property owner.

“When it comes to repairs, such costs are borne by the proprietor, client or owner of the property. The property company can assist with the sourcing of quotations for a particular job (minimum of three quotes) and thereafter present it to the owner, along with a relevant recommendation.

A comprehensive appointment (usually applies to commercial or industrial properties) in which an annual budget is presented to the property management company by respective owners and the property management company, to manage all upkeep and maintenance within a particular budget that is agreed upon,” Pravin shares.


Conclusion

In a nutshell, there are many benefits in acquiring a property manager to provide the much-needed tender love and care required by one’s property investment.

Property managers are known to reduce the stress that owners may face having to deal with day to day operations of a property such as managing cash flow, adding value and enhancements to a property. Not to mention, advising owners regarding technical issues that may arise, managing preventive and scheduled maintenance of M&E parts and most importantly managing tenants and collection of respective rentals for various properties.

Yet, the imminent question on the minds of several property owners is, what is the cost of acquiring a property manager? Previn shares, “according to the BOVEAP, the fee scale for such services range between 2% to 5% of the annual rental return of a selected property”.  

(By Viknesh Ashley Clarence, 23 April 2019)

Would you consider acquiring the services of a property manager to manage your property investment? Please let us know through the comments section below!

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As stratified properties are empowered by owners during AGM to act in the interest of the said properties, careful selection of experienced managers are imperative as you need to "lived with" the lousy ones for the year before the next AGM to appoint another...

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@admin_ps thank you for posting this article.

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Malaysia has its original "Act 242 for Valuers, Appraisers & Estate Agents" amended and takes effect last year 2018, to include the scope of enforcement for registered property managers in the property management industry. The amendments are captured in the Act A1550 (Valuers, Appraisers & Estate Agents) 2017. BOVAEA has its name changed to BOVEAP, namely The Board of Valuers, Appraisers, Estate Agents & Property Managers.


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Good property manager, hopefully employ good reliable staff...

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@carmenfoong Very Often, the decision to hire good property managers, lies in the Management Committee that made up of the condo owners. Very often, owners are not well verse in this matter and commission the wrong party to do the work, giving in return chaos to themselves, thereafter blame everyone except themselves.