Property Management in Cambodia
Property management is an important aspect of Cambodia’s fast-growing serviced apartment and condominium sector. It plays a vital role in maximizing the life, assets and all-around quality of a building.
The delivery of building services also plays a key role in attracting and retaining tenants. Residential complexes need to be at par or be more innovative in this highly competitive market.
Whether the type of real estate is a single property or a large serviced apartment, property management sector provides a mix of owner-managed properties and professional companies.
Property Management can either be:
- Owner-managed properties that deliver minimal services on a budget.
- Professional companies that provide “full services” with varying success.
Professional property management in Cambodia is relatively new compared to other countries. However, this is starting to change.
Considering the high demand for commercial spaces, apartments and condominium complexes being built in the country, it’s the best time to look into the advantages that the property management sector can offer.
Property Management for small and large residential spaces has traditionally been practiced thru “family management”. Many property owners are unwilling to allot money for the required fees of a professional management company and experienced staff.
Instead, owners are settling for cheaper options. Family members with limited capabilities are hired to take on this role. This underskilled labor, more often than not, deliver less than professional services.
However, this style is slowly changing. Owners are now beginning to see the value of quality property management in retaining tenants in this increasingly competitive market.
Customer service is extremely important. When the lights are out or the air-conditioner breaks, tenants will start complaining loudly.
If communication is not sufficient and repairs are not carried out quickly, that is cause for concern. It’s small
Managing a condominium complex can be quite risky. The property management sector for condominiums here in Cambodia is still in its early stages but has already proved to be highly efficient.
Ineffective condominium management can mean sinking funds, body corporates and monthly management fees and condominium legal services.
Pitfalls of Unmanaged Condominiums
Currently, there are only a few condominium complexes in the country. However, there are already a lot of international service providers that struggle to implement & manage the required services.
There are many issues that need to be addressed.
- There are a lot of information gaps in delivering the required services. Additional time needs to be spent training staff to effectively implement policies and deliver building procedures.
- Condominium owners need to understand and implement the required services. When electricity, common area water, and management fees don’t get paid, the building and its facilities can fall into disrepair.
With the high volume of condos coming into the real estate market, it is interesting to know who is capable of delivering high-quality property management services. As this point, quality property management is very hard to find.
THE COMMERCIAL SECTOR
In the commercial sector, many international corporations are setting up offices in Cambodia and they require professional property management services. Large corporations usually take a 5-10 year lease. Fit-out costs for a large office such as these sometimes exceed USD$1M.
Considering the commitment and amount of investment by these companies, they are usually concerned about who manages their building because the risk is too high.
IPS is now managing 3 large commercial buildings. We provide and implement building set up and documentation. This includes tenant handbooks, fit-out guidelines, building rules & regulations, standard operating procedures, and emergency procedures.
It is expected that this demand will rise in the coming months. Owners are now acknowledging their tenant’s needs and the limitations of the services they can deliver through traditional “family management”.
The Future of Property Management in Cambodia
The next few years will be interesting to watch unfold in the property management sector. It is expected that the traditional “family management” setup is about to change. Owners will slowly start to engage professional management services to meet the needs of the market.
From single property owned by foreigners living abroad to local landlords that own a large serviced apartment, our extensive knowledge of key real estate in Cambodia makes us an ideal company to cater to the diverse needs of our clients.
IPS have a wealth of experience in Cambodia real estate. It gives us the expertise to ensure that you can expect the highest level of service that is within your budget. Our main focus is on attracting and retaining tenants.
With extensive experience in Siem Reap and Phnom Penh properties, IPS’ property management service is specifically designed to ease the stress out of property owners.
IPS employs Khmer, French, English, and Filipino speakers in our team. It gives us the capability to communicate effectively with a diverse set of customers. All correspondence, communications, and accounting are performed by our staff. This allows the owners to just relax and receive payment each month.
Consequently, buildings that choose to ignore the importance of property management in managing and maintaining their building, and attracting/retaining tenants will soon realize the adverse effect of not employing this model.