What is Property Management?
Property management is the operation, control, and oversight of real estate on behalf of the property owner. A property manager acts as the intermediary between the landlord and tenants, handling the practical aspects of renting and maintaining the property.
This is distinct from service charges, which cover building-wide maintenance. Property management is a landlord-specific service for individual rental units.
Services Provided
- Tenant sourcing: Marketing the property, conducting viewings, vetting applicants
- Lease management: Drafting tenancy agreements, handling renewals and terminations
- Rent collection: Collecting rent, chasing arrears, managing deposits
- Maintenance: Coordinating repairs, routine inspections, emergency callouts
- Legal compliance: Ensuring Ejari registration (Dubai), safety certificates, and regulatory requirements
- Financial reporting: Monthly statements, annual income summaries for tax purposes
Fee Structures
| Market | Management Fee | Tenant Finding Fee |
|---|---|---|
| Dubai | 5–10% of annual rent | 5% or 1 month's rent |
| UK | 8–15% of monthly rent | 50–100% of 1 month's rent |
| Spain | 8–12% of monthly rent | 1 month's rent |
| Thailand | 5–10% of monthly rent | 1 month's rent |
Self-Manage vs Professional
| Factor | Self-Manage | Professional |
|---|---|---|
| Cost | No management fee | 5–15% of rent |
| Time required | Significant | Minimal |
| Local presence needed | Yes | No |
| Maintenance network | Build your own | Established contractors |
For overseas investors, professional property management is effectively mandatory. Without local presence, handling tenant issues, emergency repairs, and regulatory compliance (such as Ejari registration in Dubai) is impractical.