Property Management Outlook

Hong Kong's population was 7.52 million in 2019, and by the end of 2023, it was 7.50 million, showing a surface decrease of 20,000. Looking closer at the data, the resident population dropped from 7.365 million to 7.229 million, a decrease of about 136,000. Since 2019, at least 296,000 people have emigrated. The emigration wave has significantly impacted the property management industry and its prospects. As more residents choose to emigrate, especially young people and professionals, this trend is likely to continue. Due to increased emigration, government schemes like "Top Talent Pass", "Quality Migrant", "Professionals", and One-way Permits have added 529,000 people to Hong Kong. Here are some specific observations and analyses:

1. Drivers of Emigration

• Recent political and social changes in Hong Kong have led some residents to seek more stable living environments abroad. Many emigrants choose to pursue better career development and quality of life in other countries.
• Government schemes like "Top Talent Pass", "Quality Migrant", "Professionals", and One-way Permits have brought in mainland residents with substantial financial means, increasing population mobility.

2. Changes in Property Market

• Oversupply: With increasing emigration, some property owners may face rising vacancy rates, increasing demand for property management services.
• Rising Rental Demand: Some emigrants may choose to rent rather than buy, further stimulating the rental market and increasing demand for property management.

3. Property Management Opportunities

• Professional Management Needs: With increasing property owners, especially those who cannot manage properties personally due to emigration, demand for professional property management services will rise.
• Short-term Rental Market Expansion: Some owners may choose to use properties for short-term rentals, requiring professional management and operations to ensure rental efficiency and income.

Hong Kong's property management industry faces both opportunities and challenges driven by the emigration wave. Professional property management services will become an essential need for property owners, showing huge market potential.

Property Management Policies

Property management is a professional service aimed at helping property owners effectively manage and operate their properties. Below are key details of property management implementation, covering various aspects from choosing a management company to specific management processes.

How Owners Choose Suitable Property Management Companies

• Background Check: Research potential management companies' background, experience, and reputation, review client testimonials and case studies.
• Service Scope: Verify if company services meet needs, such as rental management, maintenance services, financial management, legal support, etc.
• Fee Structure: Understand their charging model, including management fees, rental commission, and other possible charges, ensuring fees are clear with no hidden charges.

Management Agreement

• Agreement Content: Clearly define management scope, rights and obligations of both parties, service duration, and termination clauses.
• Insurance Terms: Require management company to provide appropriate insurance to protect owner interests.

Property Assessment

• Market Research: Whether the management company conducts regular property surveys and market assessments to ensure rental pricing doesn't fall below market rates.
• Condition Check: Conduct comprehensive property inspections, assess conditions, and develop maintenance plans. Provide various maintenance plans at different price points and styles, offering one-stop service with professional advice.

Tenant Management

• Tenant Screening: Conduct background checks, ensure suitable tenant selection, including credit checks and income verification.
• Lease Signing: Prepare and sign leases ensuring compliance with local laws and regulations.
• Rent Collection: Regular rent collection with clear financial reporting.

Daily Management

• Repairs and Maintenance: Regular property maintenance and necessary repairs ensuring proper operation.
• Customer Service: Build good tenant relationships, promptly handle tenant issues and complaints.
• Property Inspection: Regular property condition checks, timely problem identification and resolution.

Financial Management

• Account Management: Manage property financial accounts including rental income, maintenance costs, taxes, etc.
• Report Provision: Regular financial reports to owners, transparent management of income and expenses.

Legal Compliance

• Legal Compliance: Ensure all operations comply with local laws and regulations, including tenancy laws, fire safety laws, etc.
• Legal Dispute Handling: If needed, assist owners with rental-related legal issues, provide professional legal advice services.

Termination and Evaluation

• Agreement Termination: Handle property handover matters according to contract terms with clarity and simplicity.
• Performance Evaluation: Evaluate management company service quality and make future management decisions based on experience, ensuring company maintains progress and provides quality service.

Key Points for Establishing Property Management Programs

Market Analysis

• Market Overview: Hong Kong's property market is influenced by urbanization and emigration waves, along with population mobility increased by government schemes, driving market demand and yearly increases in property management needs.
• Target Market: Target clients include individual owners, investors, overseas property holders, mainland professionals, elderly individuals with limited mobility, small family property holders, etc.
• Competitive Analysis: Hong Kong's professional property management service industry is immature, with main competitors having narrow service scope, inconsistent fees, no clear fee standards, and low market share. Our company's differentiation advantage is being a large trust enterprise, giving clients confidence in our strong backing, comprehensive support systems, professional customer service, and intelligent management systems.

Service Scope

• Rental Management: Tenant screening - establishing procedures meeting each owner's requirements. Lease signing - developing various lease types ensuring special terms and agreements between tenants and owners. Rent collection - property management service fee 3%-5% of monthly rent, possible cooperation with trust companies for rent collection accounts allowing owners to check rental income and providing financial reports.
• Property Maintenance: Regular inspections of building interior/exterior, windows, appliances, built-in fixtures, etc. Repair and maintenance services with warranty periods.
• Financial Management: Monthly financial reports detailing income and expenses. Fund management including investment and savings options.
• Legal Compliance: Rent arrears collection, property recovery assistance (additional charges). Lease contract legal consultation and compliance checks, assistance with property recovery through Lands Tribunal, professional legal advice and legal team support.

Business Model

• Fee Structure: Fixed management fee + rental commission. Charges for cleaning, maintenance works. Legal service support fees. Detailed fee schedule with clear charges, no hidden fees.
• Marketing Strategy: Online promotion: social media, website SEO, paid advertising. Offline promotion: property exhibitions, networking events, partner promotions.

Organizational Structure

• Management Team: General Manager: responsible for overall operations and strategy. Property Manager: handles daily property management and customer service. Financial Director: manages finances and reporting. Legal Team: provides rental and sales dispute legal support. Marketing Specialist: handles marketing and client acquisition. Engineering Maintenance Supervisor: responsible for all maintenance work. Cleaning Department Supervisor: manages all property cleaning, providing hotel-style service.

Property Management Value-Added Services

Value-Added Services

• Comprehensive integrated services meeting diverse client needs
• Financial Management
• Legal Consultation
• Interior Design
• Various Repairs
• Home Cleaning
• Short-term Rental Market Management
• Professional management services for short-term rental market (e.g., Airbnb), from tenant screening to cleaning maintenance, hotel-style management to increase rental returns.

Technological Innovation

• Data Analysis: Using big data to analyze market trends, tenant preferences, and property performance for more effective management strategies.
• Virtual Reality (VR) and Augmented Reality (AR): Using VR and AR technology in property showcasing and leasing process to enhance customer experience. Providing remote property and surrounding facilities viewing for clients and owners. # (additional charges apply)

Market Expansion

• International Market: Consider expansion to other countries or regions, especially for overseas investor needs.
• Emerging Markets: Enter emerging markets such as short-term rentals, long-term rentals, and commercial property management to seek growth opportunities.

Warehouse Storage

• Furniture and Miscellaneous Storage: Providing short-term furniture and item storage services.

Property Management Expansion Analysis Chart

+--------------------------------------------------+
|              Property Management Company           |
|    (Core Services: Property Management, Customer Service) |
+--------------------------------------------------+
|
|
+---------------+-------------------+
|                                   |
|                                   |
+-----------------+                  +-----------------+
|   Trust Company |                  | Secretary Service|
| (Asset Management, Tax)|          | (Company Registration)|
| (Asset Management & Tax Planning)  | (Legal Advisory Support)|
+-----------------+                  +-----------------+
|                                   |
|                                   |
+---------------+-------------------+
|                                   |
+-----------------+                  +-----------------+
| Financial Company|                 |   Legal Company  |
| (Accounting, Investment)|         | (Legal Advice,   |
| (Financial Decision Support)|     | Contracts)       |
+-----------------+                  +-----------------+
|                                   |
|                                   |
+---------------+-------------------+
|                                   |
+-----------------+                  +-----------------+
|  Tech Company   |                  | Cleaning Company |
| (Smart Systems, Data)|            | (Daily & Deep    |
| (Improve Management Efficiency)|   | Cleaning)        |
+-----------------+                  +-----------------+
|                                   |
|                                   |
+---------------+-------------------+
|                                   |
+-----------------+                  +-----------------+
| Maintenance Co. |                  | Property Valuation|
| (Repair, Renovation)|             | (Market Assessment)|
| (Maintain Function & Aesthetics)   | (Market Value)    |
+-----------------+                  +-----------------+
|                                   |
|                                   |
+---------------+-------------------+
|
|
+-----------------+
| Storage Service |
| (Item Storage & Management)|
+-----------------+

Vision and Mission Summary