Still unknown a few years ago in Mauritius, more and more real estate agencies are now proposing a rental management contract to their clients, may they be foreign investors or local owners.
What is Rental Management?
A professional outsider (real estate agency, trustee, notary) manages properties on behalf of the owners or investors. Against a fixed remuneration, the owner is discharged of the daily hassle & monitoring of their property.
For whom?
Owners who do not wish to be directly involved on a day to day basis in the rental of their properties (lack of time, distance constraints, etc…) can use this service.
As pointed out by Charles Bienvenu, Director of Welcome Home, “rental management implies full commitment from the agent as the tenant may need his services at any time”.
What kind of service?
The scope of services varies from one agent to another. Generally speaking, the rental manager visits the premises regularly. He is responsible for rent collection on behalf of the owner; he is also responsible for the overall maintenance of the property (faulty heater, water leaks, electrical problems, submission of quotes to the owner for repairs, etc…). He acts as a mediator between the tenant and the owner, should need be to intervene in case of conflict.
OFIM, with a network of 23 real estate agencies in the Indian Ocean, manages more than 4000 rental contracts in Reunion Island. Since a few months, OFIM also offers Rental Management in Mauritius. They take care of all the services mentioned here-above as well as the payment of syndic fees and the follow-up of insurance premiums for the owner.
Feel Free, managed by Nicolas Tennant, can also provide garden maintenance and domestic staff.
How much does a rental management contract cost?
The cost of a Rental Management contract varies from case to case (depending on the scope of services provided by the agent). Between 5 to 10% of the annual rent is usually paid to the agent as remuneration; the amount can climb up to 15% should the contract include extra services.
The practice of rental management is becoming more and more common as homeowners come to realize the benefits of transmitting their responsibilities to a professional who, in turn, will protect the owners’ interests against the tenants.
Text: www.lexpressproperty.com
