Newsec is introducing the first-ever residential rental property management service in Lithuania, thus expanding its range of property asset management services. In doing so, the company will apply the modern housing management practices of the Newsec Group, which operates across eight countries of Northern Europe.
Rida Kalvaitienė, Head of Property Asset Management at Newsec in the Baltics, notes that as demand for housing grows in Lithuania’s big cities, more and more corporate and individual investors are choosing the rental segment as a safe investment. Lithuanian real estate developers are also starting to invest more confidently in rental properties like co-living spaces and student dormitories, and many funds in Europe are investing in residential real estate as well.
“In many European countries, funds that invest in real estate, besides offices, logistics centres and retail buildings, also hold large portfolios of residential assets. In Scandinavia, for example, about a third of all real estate deals involve residential rental properties. Developers carefully plan what part of their projects to designate for renting out and later sell to a professional fund, and what part to sell to private individuals. More and more local and foreign funds are looking to acquire developed rental properties in the Baltic countries,” Kalvaitienė says.
The growth of Lithuania’s rental housing market signals that the country is ready for residential property asset management services. And since managing projects of this type demands time and specific expertise, investors generally entrust the management of such assets to professional property managers.
Newsec’s new residential property asset management service is intended for real estate developers and funds that invest in not just commercial but also residential assets, and for private investors. The service will include commercial management of a building, its technical maintenance, accounting for the company that has acquired the property, renting out the residential space, administration of payments, relations with tenants and the provision of additional services for them.
“In providing the service, we will use the know-how of the Newsec Group, particularly our Finnish colleagues, and customised digital solutions. The residential property management service will be fully digitalised, with a specially designed tool that will allow managers as well as investors and tenants to see all information in real-time,” Newsec’s Head of Property Asset Management in the Baltics stresses.
The digital property management tool will help to effectively manage real estate, saving time and money. It enables centralised administration of rental agreements, interaction with tenants, automatic collection of rental payments and utility fees, problem resolution and so on. Tenants, meanwhile, can view all the information related to their rented housing on a self-service portal.