Foreigners who bought a house in Panama in order to rent it to other people, often do not live here full time in order to manage the house and watch over the tenants. In a case like that, it would be advisable to use a Panama Rental Management Service Company. This service can cost 20% and 30% of the rent paid.
Here is what a Panama Rental Management Services company can provide:
1. Rent Collection
The company uses a rental manager who visits the property once a month to collect the rent and ensures nothing is missing or damaged. Any rental collections are deposited into a Panama bank account for the purpose of paying the fees and expenses. A minimum deposit of $1,000 is recommended to keep in order to cover any emergency repairs.
If something is broken or damaged and needs to be repaired, the property manager hires a repairman and pays for the any repairs with the money in the Panama bank account. It’s important that the tenant and the property manager will have good communication.
The property manager’s responsibility is to pay the property taxes on time.
4. New Tenants
Another important duty of the property manager is to locate good tenants and check their references and credit. When a tenant moves out, it’s the property manager’s duty to inspect the property and prepare a full and comprehensive report for the owner.
Before the tenant moves in, the company will collect the last month’s rent and security deposits equivalent to two months’ rent.
Monthly reports are provided to the owner which includes itemizing all expenses and problems to the owners.
After a tenant leaves, the company should re-decorate the property. This includes new paint, curtains (if necessary), cleaning and any repairs required.
Bad tenants are something an owner would hope not to have to deal with. The property manager will do it for you and save you the time and expense so you won’t have to return to Panama for that. The company will also make any repairs needed or find new tenants.
In conclusion, property managers will keep your investment safe and save you time and money so you won’t have to return to Panama. A property manager has a true value and will fix all your problems, and by doing so it will increase the value of your property.
MLS Acobir, is the most preferred property list in Panama. Please contact us for all of your Panama Relocation and real estate needs.