Once you have found tenants for your property and signed a long-term lease, the next important phase begins – management. While it may seem simple at first glance, the reality is quite different. Many owners find that managing a long-term lease requires significantly more time, knowledge and effort than they expected.
The hidden challenges of self-government
When you decide to manage your property yourself, you take on responsibility for a multitude of tasks that are not always obvious at first. You need to maintain regular communication with tenants, monitor and remind them to pay bills on time, organize repairs when necessary, and check the condition of the property. All of this requires not only time, but also specific knowledge in various areas – from legal issues to technical support.
Remote management is particularly problematic. If you live in another city or country, simple tasks like checking the property or arranging for emergency repairs become complicated and expensive. Even if you live close by, constant calls and requests for help can turn renting from a passive income stream into an active pursuit.
The advantages of professional management
1. Guaranteed monthly income on a fixed date
One of the biggest advantages of professional management is the security of payments. You receive your monthly rent on a fixed date of the current month, even if the tenant is late in paying. The management company takes on the risk of late payments and guarantees your income, saving you stress and uncertainty.
2. Professional communication and support
Modern management companies such as Flat Manager offer more than traditional management and have trained teams that can handle any situation. They provide 24/7 communication with tenants and a telephone line in Bulgarian and English for emergencies. This is especially important for international tenants or when technical problems occur outside of working hours. Thus, the property becomes a serviced apartment with concierge services for tenants, which allows positioning in a higher price category.
3. Regular inspections and preventive maintenance
Self-monitoring of the condition of the property is often neglected by owners, which can lead to serious and expensive problems in the future. Professional managers conduct regular inspections of the condition of the property, which allows for timely detection and elimination of problems before they turn into expensive repairs.
4. Administrative exemption
Managing a long-term rental involves numerous administrative tasks – from controlling accounts to representing before boards of directors and utility companies. Professional managers take on the representation before cooperatives, home managers, Electrohold and other institutions, which frees you from bureaucracy and saves you valuable time. And in serious cases such as sudden departure by the tenant or severe damage to the property, they conduct the necessary legal actions on their own behalf – with engaged lawyers, attorneys and financial resources, without committing the owner with time, money or direct participation in legal proceedings.
5. Tax optimization
Professional management also includes tax advice, which can save you significant amounts of money or protect you from administrative violations. Specialized companies are familiar with the latest changes in legislation and can advise you on how to optimize your tax obligations.
6. The financial logic behind professional management
Although a professional management fee may seem like an additional expense, it is often offset by a number of factors. The management fee for long-term rental properties with Flat Manager is 10% of the monthly rent (but not less than 120 leva including VAT per month).
For property owners with a monthly rent of over 1200 leva, this means only 10% commission, which can be offset by the higher rents that are achieved by professionally positioning as a serviced apartment. For cheaper properties, the fixed amount of 120 leva may seem high, but it should be compared to the time and effort you will invest in self-management.
Conclusion
Professional management of a long-term rental is not just a convenience – it is an investment in the peace of mind and long-term profitability of the property. While self-management may seem more economical at first glance, the hidden costs of time, stress and potential mistakes often outweigh the money saved on commission.
For owners seeking true passive income from their properties, professional management offers the optimal combination of security, convenience, and maximizing returns.
If you are looking for not only professional management but also an easy way to get started with the rental, Flatimo is the convenient and easy first step – 100% verified and genuine listings, accurate address and quality photos that attract only genuinely interested candidates. Thanks to the digital process and online booking of viewings, properties are let on average with up to 3 viewings. This means less wasted time and a faster transition to the next step – effective rental management.
