REAL ESTATE

MANAGEMENT
SELF-MANAGEMENT
vs
OUTSOURCING MANAGEMENT
The presentation of Group 5
REAL ESTATE
MANAGEMENT
Real estate management
encompasses the execution of
one, multiple, or all activities
involved in the administration,
exploitation, and disposal of real
estate, under the authorization
of the property owner,
construction project manager, or
individual with land usage rights.
 Financial
Resource

Quantity and
Nature of
real estate
Time assets
avalability

Expertise
Investment
Objectives
 SHOULD THE PROPERTY OWNER CHOOSE

OR
OUTSOURCING
SELF - MANAGEMENT MANAGEMENT
01

SELF –
MANAGEMENT
ADVANTAGES

COST SAVING FULL CONTROL DIRECT INTERACTION

FULL
CONTROL
ADVANTAGES
Avoid property management
fees

COST SAVING
Direct handling of Maintenance
and Repairs

Negotiating with Suppliers

Lower advertising cost

ADVANTAGES

COST SAVING FULL CONTROL DIRECT INTERACTION

FULL
CONTROL
ADVANTAGES Property owner have complete
control over decision making
and operations
FULL CONTROL
For example, when the property encounters
a problem, the owner can make a decision to
handle it immediately without having to go
through another individual, helping the
problem to be resolved quickly.

With full control over your properties, you can

implement cost-saving measures more
effectively and monitor expenses closely. This
can help maximize profitability and ensure
that resources are allocated efficiently. FULL
CONTROL
ADVANTAGES

COST SAVING FULL CONTROL DIRECT INTERACTION

FULL
CONTROL
ADVANTAGES
Building Relationship

Interacting directly with tenants, vendors, and

DIRECT INTERACTION other stakeholders allows you to build stronger
relationships and foster a sense of trust and
accountability.

This can lead to smoother transactions, better

communication, and increased tenant
satisfaction and retention.

FULL
CONTROL
DISADVANTAGES
TIME - CONSUMING LACK OF EXPERTISE

LIMITED RESOURCES GEOGRAPHIC CONSTRAINTS

DISADVANTAGES
TIME - CONSUMING

Managing a property can be a full-time

job, requiring constant attention to
maintenance, repairs, tenant relations,
and legal compliance. Property owners
who already have busy schedules or live
far away from the property may find it
challenging to manage it effectively.
DISADVANTAGES
TIME - CONSUMING LACK OF EXPERTISE

LIMITED RESOURCES GEOGRAPHIC CONSTRAINTS

 DISADVANTAGES
LACK OF EXPERTISE

Property management involves a wide

range of specialized skills:

- Legal knowledge
- Financial Management
- Maintenance and Repairs
- Marketing and Leasing
- Risk Management
- Emergency Response
DISADVANTAGES
TIME - CONSUMING LACK OF EXPERTISE

LIMITED RESOURCES GEOGRAPHIC CONSTRAINTS

 DISADVANTAGES
LIMITED RESOURCES

Human Resources : Owners who self-

manage may lack the support of dedicated
staff or property management
professionals, making it challenging to
handle all aspects of property management
effectively, especially for larger portfolios.

Networking opportunites : Self-managing

owners may have limited opportunities to
network with other real estate professionals,
industry experts, or service providers, which
could impact their ability to access support,
advice, or resources.
DISADVANTAGES
TIME - CONSUMING LACK OF EXPERTISE

LIMITED RESOURCES GEOGRAPHIC CONSTRAINTS

DISADVANTAGES
GEOGRAPHIC CONSTRAINTS

Owners living far from their properties may

face logistical challenges in managing
them effectively.

This can lead to conflicts or

misunderstandings that could have been
avoided with the help of a professional
property manager.
DISADVANTAGES
TIME - CONSUMING LACK OF EXPERTISE

LIMITED RESOURCES GEOGRAPHIC CONSTRAINTS

02

OUTSOURCING
MANAGEMENT
WHY
SHOULD WE
HIRE A
PROPERTY
MANAGER?
 ADVANTAGES
SAVE TIME AND EFFORT
• Hiring a property manager
can save landlords time and
effort by efficiently handling
tasks such as marketing
vacancies, conducting
property inspections, and
responding to tenant
inquiries. This streamlined
approach can lead to higher
tenant satisfaction and
retention rates, fostering a
positive rental experience for
both tenants and landlords
alike.
EXPERTISE and EXPERIENCE ACCESS TO RESOURCES
• Their knowledge of • Network of contractors
local market trends, and service providers
rental laws, and • Tenant screening tools
property maintenance • Marketing channels
can help optimize • Legal and regulatory
rental income and compliance resources
minimize vacancies. • Financial
management tools
• Provide valuable
insights and advice on
property
improvements and
upgrades
DISADVANTAGES
01 02
MANAGEMENT FEES REDUCED CONTROL

03 04
COMMUNICATION POTENTIAL
ISSUES CONFLICTS
 Percentage
of rent Flat fee

Renewal
Fee

Leasing fee
10% OF YOUR RENTAL INCOME
MANAGEMENT FEES

Vacancy Additional
Maintenance
Fee Services
Markup
REDUCED CONTROL over
Day-to-day Maintenance and
Tenant Selection Operations Repairs Lease terms

Financial Decisions Emergency Property visits and

Situations Inspections
COMMUNICATION ISSUES
Lack of clear
communication channels

Lack of transparency

Inadequate
documentation

Failure to address
concerns
POTENTIAL CONFLICTS
Property Owner

Misaligned goals
Tenant issues
and priorities

Managing
Property

Performance Personality
expectations crashes

Property Manager
03
DECISION
MAKING
PROCESS
DECISION MAKING PROCESS
Individual Preferences Objectives Advantages Research
circumstances
• Finance Desire for • Maximize How can you • Research
• Availability autonomy, and profitability benefit from Property
• Experience work-life balance • Generate passive hiring a property Managemen
and income manager? t companies
Expertise • Provide housing • Check
• Property Lifestyle choices • Enhance property Disadvantages references
portfolio value and reviews
• Location What are the
• Long-term negative points of
goals hiring a property
manager
 THANKS!
Do you have any questions?

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