There is no shortage of firms offering property management services, a cursory review of the Yellow Pages reveals, but what would you get in return for contracting their services is largely dependent on how much you can afford for the handling of your residential or commercial property.

The fee for these services generally ranges between 10 and 15 per cent of rental cost, according to Don Glanville, president of Realtors International Limited in Kingston.

Commercial complexes with 20 units renting at $100,000 monthly, for example, would attract a fee of $200,000 to $350,000 monthly.

A home which rents for US$1,000 would attract a fee of US$100 to US$150 monthly, which pays for keeping the property in good repair and renovations, depending on what is authorised.

"Generally, the property must remain sanitary and attractive so it can remain occupied by renters," says Glanville.

Fees are retained from rents collected or may be paid out of maintenance in properties where there is very little rental.

If all one requires is the one-time rental of the property that would be a one-off cost of one month's rental, it appears. The residence which rents at US$1,000 would, therefore, attract a fee of the same amount from the realtor for securing the tenant.

scope of work

But, a real estate company could contract to keep the property rented and maintained using the services of a licensed property manager.

Realtor Valerie Levy, of Valerie Levy & Associates, says fees charged are mainly priced at about 15 per cent of rentals and can even be a bit more depending on the scope of the work which might extend to handling taxation issues.

Property managers are required to be licensed by the Real Estate Board (REB), whose criteria includes passing the course in property management offered at the University of Technology (UTech).

Cadien Murray Stuart, head of the Building and Land Management department at UTech, says that the requirement of 50 hours of training property management is for standardisation and accountability.

"Prior to the introduction of the Real Estate Dealers and Developers Act (1987), no formal qualification was required to practice property management," Stuart tells Sunday Business.

"For many years, property management was practised in an informal way, often in an ad hoc manner. The course seeks to bring standardisation in the practice, as it is now regulated by the act."

Today, persons who practise property management are required to possess more than a limited background in property.

The course provides exposure to real estate legislation and the principles to be employed in landlord and tenant relationships.

The 50-hour programme was costed at $75,000 for the 2008/09 academic year.

Other areas covered include construction technology, asset management and property management, and it has an accounting element.

The course was designed by the REB, says its general manager Sandra Watson, and is offered only to licensed real estate dealers.

But: "We have not done a survey to see if everybody is licensed," Watson admits.

And: "There are some exemptions including those employed by strata property as property managers, although these are the ones who might need it most of all," the REB manager said.

The current strata corporations bill which was presented to Parliament on Wednesday, July 22, is intended to address this particular problem.

A property manager is expected to keep the residence or commercial complex occupied all year round.

technical services

"Usually, a 90 per cent occupancy over five years is targeted as desirable. Ten per cent of the time, on average, the property may be vacant," says Glanville.

"If it's a commercial property, one would want long leases of minimum three years, with the option for renewal. In Jamaica this is good. In cities like New York and London, one can have tenants for as long as 10 or 20 years."

The commercial property manager, he says, must have access to technical services to fix such problems as air-conditioning breakdowns which must be repaired immediately and also provide back-up power generating services in properties that use elevators.

"Managing residential property may be the least difficult project, unless it is an apartment complex where multiple units exist and use common utilities and amenities," Glanville says.

Apartment buildings may come with a swimming pool and large sewerage system in need of maintenance.

The cost of managing a complex is negotiable, depending on the services required.

avia.collinder@gleanerjm.com