The woes of the rich don't seem to end. Once you've made that pile of money, investing it becomes an issue. Stocks, gold or real estate? For those who like the return multiplier given by real estate, a new problem soon rears its head: How to take care of all the real estate that is part of the portfolio? The problem gets specially acute if the property is outside the city of residence of the investor. The one deterrent for the real-estate investing high networth investor (HNI) is the management of various pieces of property. From maintainance to finding a tenant, to getting rent on time and keeping track of the paperwork, managing a property in a location outside of the city of residence the nitty gritty work takes the buzz out of the real estate multiplier that gives the portfolio such a great returns kick. But where there is a gap, there is usually an entrepreneur willing to take on the work. For a fee. Enter property management services aimed at HNIs with real estate firms and consultants lining up to offer these services. Says Sameer Dhar, a New Delhi- based HNI who has two properties in different states and has hired a professional firm Axiom Estates to manage his properties, "Collecting rent, cutting the grass and fixing broken windows is no more a concern. The money that can be made while not doing these things is too valuable, and the cost for having someone who can do so more competently is negligible."

* What they do
They do all it takes to run your property so you do not need to personally supervise and maintain your real estate assets. The spectrum of services provided is often impressive: from housekeeping to repairing, finding a suitable tenant, collection of rent, negotiating rent agreements with changes in market prices, depositing it in your account and processing other legal documents before renting it out.

What began as a service for the non-resident Indians (NRIs), who view their properties as an investment as well as a vacation home for few weeks in a year, is now extending to the wealthy Indian. According to the World Wealth Report 2010 released in June by Capegemini and Merrill Lynch Wealth Management, the number of HNIs in India have grown from 84,000 in 2009 to 126,700.

Says Simit Thakur, chief executive officer, Neat Space Property and Asset Management Services Co.: "There are many NRIs who own residential apartments here. They only come for a very short period of time and their properties are usually managed by firms like us." The five-year old Mumbai-based firm handles more than 30 clients including NRIs and resident Indians.

* What it costs
The charges for these services differ from company to company and depends on the size of your property. Some companies charge between Rs2 and Rs4 per sq. ft, while others take commissions between 6% and 10% on the annual rental value of residential properties. Therefore, for example, if the tenant pays a rent of Rs50,000 per month, the property manager will charge you as much as Rs5,000 per month. However, the fee is mutually agreed between the client and the service provider depending on the services availed and are usually paid on a quarterly basis. For example, a 2,000 sq. ft flat will have an annual charge of around Rs50,000 if the charges are on a per sq. ft basis.

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prashant.m@livemint.com