How can you recognize that you need a new apartment manager in Budapest?
Seamus purchased an apartment in Budapest. During the first few years everything was fine: it was rented, he was satisfied with the income. Later on the communication became slower with the property manager, he had to beg to get the rent transferred to him. When he received something it was way lower than the expected because of a long list of expenses the manager deducted. Finally he started to be suspicious when the apartment was vacant for months. So he decided to travel to Budapest to see what is going on. He discovered that somebody was living in the apartment. It led to the decision of switching property manager. Now his apartment is a yielding investment again but past events couldn’t be clarified since Seamus did not have any document which would proved his claims.
A good property manager is key to run your real estate investment in Hungary and generate profit from it.
What are the typical signs of property management problems?
- Your apartment is empty for months (or even for years…)
- Lack of communication
- Lack of regular bank transfers
- Getting the same amount of rental fee for years
If you are facing these problems, it is high time to consider to find a new property manager.
BUT…even the best property manager may fail to rent out a property or meet the expectations if the owner has unreal notions regarding the apartment or the pricing.
There are three types of property managers who can cause problems to you.
In the first two categories there are enthusiastic but amateur players on the market who may seem cheaper in the short run but more expensive on the long run:
1. Amateurs
Such as:
- classmate you met during your studies in Hungary
- (ex-) tenant of your apartment
- your Hungarian lawyer
- your distant Hungarian relative
- anybody who does it as a second job
The problem is the same with all of them: they do it as a side job or as a favor to you. As experiences show, it rarely works. It results lack of time, lack of professional knowledge and lack of focus on your apartment in Budapest.
The final result is loss on your Budapest property investment.
2. Unprofessional Companies
There are companies where people are committed but because of the lack of professional experience or of necessary infrastructure they cannot provide a quality service.
The result is quite the same as at the previous case but it is harder to recognize it without experience (which costs you money).
With a good marketing they can appear on a market as professional players.
3. The Tricky One
Do not forget that you are far enough from Hungary to give the opportunity for malicious people to abuse the situation.
There are a few scenarios you can count with:
- somebody uses the apartment without your approval – no rent paid to you
- the apartment is rented but you are told it is empty – no rent paid to you
- the apartment is rented which you are aware of but for a higher price – lower rent paid to you
- not even mentioning the unrealistically high maintenance costs.
Unfortunately without signed documents you cannot prove any of these.
If you are suspicious you can check it only personally – travelling to Hungary - which costs you time and money.
Do not delay your decision: if you lost your trust, try another agent: switching agents is easy.
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