Taiwan's residential rental market offers multiple ways for landlords to rent out their properties, with master leasing, property management, and real estate brokerage being three common service models. Each of these services has its own characteristics and functions, allowing landlords to choose the most suitable option based on their needs. Below is a comparison of these three services:
1. Real Estate Brokerage: Helping Landlords Find Tenants, with Contracts Signed Directly Between Landlords and Tenants
Real estate brokers primarily assist landlords in finding suitable tenants. They typically conduct market analysis, advertise the property, arrange property viewings, and screen potential tenants. Once a suitable tenant is found, the broker helps facilitate the lease signing process, but the rental contract is ultimately signed directly between the landlord and the tenant. Brokers charge a service fee, usually equivalent to one and a half months’ rent (e.g., the landlord pays one month's rent, and the tenant pays half a month's rent). In this model, the landlord remains responsible for managing the property’s daily operations, such as rent collection and maintenance.
2. Property Management: Managing Lease Execution, Including Handover, Rent Collection, and Maintenance
Property management companies provide landlords with a more comprehensive service by managing lease execution between landlords and tenants. Some property management companies also offer tenant-finding services. These companies handle tasks such as property handover, rent collection, and maintenance coordination, reducing the need for direct communication between landlords and tenants. Property managers ensure that tenants fulfill their lease obligations and provide regular reports on the property's condition. This is a convenient option for landlords who have limited time or prefer to avoid the hassle of rental management. Property management fees are typically charged as a percentage of the monthly rent (e.g., 10%–15% of the rental income).
3. Master Leasing: Signing a Long-Term Lease with the Landlord and Subleasing the Property
This model offers a stable and hassle-free rental solution for landlords. The landlord signs a long-term lease with a master leasing company, which guarantees a fixed rental income for the agreed period. The master leasing company then subleases the property to tenants, acting as the second landlord. Since the primary lease is with the master leasing company, the landlord does not have to worry about tenant turnover or rent collection issues. The master leasing company takes full responsibility for managing and subleasing the property. However, the rental income for the landlord is usually slightly lower than the market rate, as the master leasing company needs to earn a profit from the rent difference.
Summary
Real estate brokerage, property management, and master leasing offer different levels of service. Landlords should choose the model that best suits their needs:
- For full control over the rental process, real estate brokerage is the best option.
- To reduce management burden, property management offers a convenient solution.
- For stable rental income, master leasing provides a worry-free approach.
