siliconindia | | October 20189There are a sizeable number of technology-backed real estate start-ups, which are disrupting the market by offering various rental options on the online platform.The concept of property management is relatively new in India and it has found an application in the commercial side of the real estate industry. There are sizeable number of commercial real estate properties, which are managed by property management companies, especially in the metros. The functions of property management are almost like a one-stop-location for all kind of services, which are required for a real estate asset. This can extend from simple mainte-nance of the property and going all the way up to managing the legal and financial aspects.The basic idea being that, the landlord of the real estate property will not have to worry about the basic daily mainte-nance of the asset and concentrate on the core business. For the owners of commercial establishments, it is a valuable of-fering when they get into property management agreements, as the various functions which are required to maintain this asset may not be their area of expertise at all. In the area of commercial establishments, property management is some-thing that is becoming critical every day, though this concept is yet to make its strong foray into the housing segment.There are a few companies which offer property manage-ment services for housing or the residential segment. They act like a one-stop-solution for all the owners and landlords of such property. There are several advantages for landlords in opting for a property management agreement. It assures them that there is a regular income, periodic audit and main-tenance of the property, taking care of the legal aspects and many other functions. In short, this would actually mean that it reduces the operating costs for the landlord and also en-hances the property value. The concept of property manage-ment is popular with the non-resident Indians (NRIs), as it is practically not possible for them to regularly monitor their property sitting out of India.Today, technology is also emerging as a key enabler in the growth of a services like property management. There are a sizeable number of technology-backed real estate start-ups, which are disrupting the market by offering various rental options on the online platform. This is similar to prop-erty management as they are able to deliver a service, which benefits both the landlord and tenant in the most transparent manner possible.For the real estate developers in the country, property management has emerged as the natural extension of their business. The past is a scenario where the developers' re-sponsibility ended with just construction of the building. But it is property management as a value-added service that enhances the long-term relationship with the customer. As real estate developers are closely connected with the require-ments of the customers, there is a better understanding of what will be their future needs. The developers would also not find it very challenging in providing such services, as they already have the in-house expertise.However, there are still certain challenges for the segment of property management to grow in the country as the level of trust is yet to be nurtured. This would mean that the retail consumers are not yet comfortable allowing a third party to manage their property. There are also a few niggling wor-ries on the legal aspect of property management especially in the area of sub-letting of property. There is no clarity on what the legal status in such agreements is. The future looks bright for the real estate sector in the country especially in the segment of property management. The economy is also maturing and there is more openness to sophisticated, mod-ern ways in which any property can be maintained through a third party. Bijay Agarwal
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