Property management on a trust basis 一 is a service in which the owner entrusts his properties (residential or commercial real estate) to the management of a professional specializing in property management.

The essence of this approach is that the owner transfers the right to manage his properties to a third party, while he himself continues to be their owner, receiving profit in the form of regular rental payments.

The main steps of the process are:

  1. Execution of the agreement. The owner and manager sign an agreement that defines the list of services provided, the powers of the manager, the terms of cooperation, and the amount of remuneration.
  2. Transfer of management rights. The owner transfers all necessary documentation to the manager and provides a power of attorney to perform legally significant actions on his behalf.
  3. Property management. The manager’s responsibilities include:
    • Finding tenants and signing lease agreements.
    • Monitoring the condition of an object (apartment or building).
    • Resolving current issues, including paying utility bills, organizing repairs, and cleaning.
    • Regular monitoring of rental receipts and collection of debts.
    • Management of received income and its transfer to the owner.

The manager usually receives an income of 10–15% of the rental income. This commission may seem significant, but in return, the owner is freed from the need to independently search for tenants, show the apartment, conclude contracts, and resolve current issues. All these tasks are taken on by a professional manager.