to pay a mandatory fee, which was determined by Brazil’s Constitution and assessed
based on a company’s assets.
Founded in 1942, SECOVI-Rio currently represents and serves more than 4,000
management companies, most of which are dedicated to condominium management,
the most popular choice for residential renters. More than 3. 5 million people in Rio
alone live in 32,000 buildings around the area.
In 2018, SECOVI-Rio, along with all other SECOVIs, is set to undergo major
changes. The mandatory fee companies should pay will start to be elective, due to
changes in Brazilian laws. However, as SECOVI-Rio prioritizes the representation of
management companies and provides education and information to the market, the
union is confident it will succeed in times ahead.
CURRENT MARKET CONDITIONS
The residential rental market has changed dramatically for the worse as a result of
poor economic conditions. Renters, owners and managers are all feeling the sting of
the increased joblessness and inflation nationwide.
When the recession began in 2014, rental property values had been climbing steadily toward their highest point, only to drop sharply over the course of the political
upheaval. From March of 2012 to July of 2017, property values dropped almost 10 percent. Rental property values currently stand well below average levels, with a long way
to go until they begin to break even with where they were before the recession began.
Equally troubling, rental vacancy rates have increased six times over since 2012.
So how are property managers compensating for the difficult rental market?
Many property managers have found the main key to staying afloat in the current
difficult economic situation is adapting the value-added strategy to match the market’s
needs. When times are tough, people are always looking for the best value for their
money, and property managers can offer value-added services to owners and renters to
help offset economic stress. In the Brazilian market, the following enhancements are
helping to give local property managers an extra edge.
CREATING A CUSTOMER CARE CENTER
One of the main roles of a property manager, especially of residential spaces, is being
available to meet the needs of the resident. The manager can foster an environment
of trust with residents by establishing a customer care center, staffed by professionals
that are trained to answer any questions that the resident may have, or handle any
emergencies that may occur.
PROVIDING ACCESS TO PROPERTY MANAGEMENT SOFTWARE
Property management software is specially designed to keep companies up to date on
both client and resident needs. It can allow managers to stay up to date on any changes that take place, even when they have multiple buildings in their portfolios. It also
maximizes communication potential and helps management and board members be
more effective in their roles.
COMMUNITY COLLECTION SERVICES
Collecting rent on time can be one of the most challenging aspects of renting out
property, made even more so when the economy turns sour. A property manager that
collects rent on an owner’s behalf can ensure that operations continue to run smoothly
in any building,
SECOVI-Rio holds a
license to provide
education towards the ARM
certification, as well as
being the administrators
of Rio Chapter No. 120.
The chapter currently
has 27 ARM Members
and 9 CPM Members.
PROVIDING VENDOR GUIDANCE
Property managers must deal with local
vendors on a daily basis, but remembering to market their expertise in this area
can help set them apart. Many property
managers already have strong relationships with local waste management, insurance or internet providers. Relying on
this vendor network and taking full advantage of the bargaining power it brings
can dramatically increase the value of a
LOOKING TO THE FUTURE
2018 is poised to bring big changes to
Brazil. Despite the current economic climate, Brazil’s economy is finally looking
up after three years of recession, according to de Barros Lisboa. The dust has begun to settle after the impeachment, and
Brazilians are beginning to feel more optimistic about market conditions.
As the economy recovers, the property management industry will continue
to rebound as well. Vacancies in rental
communities will drop along with unemployment, as more young professional
Brazilians are able to afford to move out
on their own.
With the current seedlings of growth,
and an election in 2018, Brazil looks
hopefully to the future.