The live management

 Investing in the real-estate is not so easy and the idea that makes one think the owner is to perceive the rents regularly at the end of each month is wrong. The investor has to keep in mind that managing an immovable property in an optimal way is a heavy load and implies a long term work plus a conscience of each day. Indeed, put a rented good is a non stop work. First, publish right advertisements, adjust to any appointment customers would ask for, take time to visit the goods, study files in order to answer any demand that might occur, draft the contract of lease, do the inventory of fixtures both on entering and leaving. In a few words, a lot of time to be spent.

 Legal risk : the relation with the tenant can turn out sometimes difficult: administrative Spots ( DPE), drafting(editorial staff) of the mails (receipts, recovery of insurance certificates , maintenance) without forgetting the management of the renting problems, calculation of rent increases, calculation of loads) plus relationship with the neighborhood in case your tenant happens to be not quite scrupulous on regular payments regarding co-ownership.

It is quite important too not to forget to protect your own self against unpaid rent risk plus civil liabilities (shared with the tenant): it implies relationship with insurances, supplementary costs.

Nowadays to manage an immovable property demands accurate knowledge, time, and it becomes very difficult to rent or even manage one’s own good. That is why the delegated management knows now a real craze and the informed owners more and more prefer to confide their goods to a professional who will manage a wallet of renting management in the everyday life.

The Renting Management

The property manager takes care of all or part of the management in relation with the tenant, perceives the payment, with a percentage on the collected rents, which usually amounts 6 to 8% of the rent, VAT not included.

However, the calculation of a delegated real cost over a period of 15 years shows that these delegation costs give an average effective return of 0,35 points after taxes and freshly.

How do we get to this result? From a fiscal point of view, the management by a property manager offers the possibility to the landlord to deduct every year the fees of management of its land income. So, the compulsory taxpayers can reduce the fees of management of more than one half. Then a property manager can help to realize other savings to his customer: the time of inoccupation of the good during tenant's change for instance. It is estimated that a landlord looses an average of one month rent every five years (which means a loss of 8 % on its return this year. The coverage of the maintenance by a manager can also be a factor of economy: a professional who manages numerous lots can obtain better prices with the craftsmen persons receiving benefits of services (painters, plumbers). The economy so realized can reach 10 to 15 % on the repair works, moreover 25 to 30 % for services and minute (ex: the replacement of a faucet). Now, we estimate at 6-7 % of the annual rent the sum which a landlord has to allocate to these works every year.

The same report about the management of the outstanding rent payments represents approximately 2% of the current leases. Professionals, better armed, know how to deal with the risks because their obligations are much more severe than those of a private individual. The risk is also facilitated by the recovering means for outstanding payments of the administrators: the contract with the bailiffs implies to find the best and fastest solution of any difficulty that might occur. The risks of outstanding payments are generally reduced by half.

A possessions administrator is to offer you a large game of full services as far as the delegated management is concerned