Real Estate Investor Magazine South Africa April/ May 2020 | Page 64

INSPIRATION
Taking Shape in
the Inner City
TINA BODILL
From Bramley Cop to managing over 3 500 units and his own private
property portfolio, Solly Ramalamula has proven that safety, security
and cleanliness along with entrepreneurial tenacity is what it takes to
win at property.
S
ituated on a bustling corner in Joburg’s inner city
stands an impressive R32m light industrial conversion
of 101 apartments, office space and retail. This forms
part of a 1 400 sqm mixed use development across 3 stands,
the latest investment of Solly Ramalamula, also home of
Take Shape Property Management, a property management
agency founded by him in 2012.
Where it all started
Solly’s journey in property began when he became the
Chairman of his sectional title building’s Body Corporate –
Algarve. “Although I’ve always been entrepreneurial, I never
thought I would become a property investor.”
“I acquired my first investment property of 6 units through
TUHF Limited’s Intuthuko Equity Fund. They are still trusted
partners of Take Shape today. We converted the 6 units into
12 units. After that I acquired my second building where we
converted 8 units to 16 units.”
“In 2011, I took the step to go full time into managing
properties. It was myself and Subashni Fish, she is still with us
as Take Shape’s Head of Operations.”
Take Shape Today
Today, Take Shape Property Management offers comprehensive
property management services including management and
reporting, administrative support and onsite services with a
strong emphasis on adding real value to landlords and tenants.
The company manages 87 properties as well as over 5000 square
meters of office space and retail shops situated in Johannesburg
CBD, Berea, Yeoville, Germiston, Midrand and Pretoria with
different departments employing over 133 staff members. Take
Shape Property Management is also about to move into 367
sqm of brand-new office space. “We look forward to providing
even better services from our new offices,” says Solly.
What makes Take Shape Different?
“We are hands on and specialists in our market, the inner city.
We don’t sit in offices looking at numbers. Our people are out
and about managing our clients’ portfolios and adding real
value through great service.”
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APRIL/MAY 2020 SA Real Estate Investor Magazine
10 Tips from Solly Ramalamula:
Identify an area and property in which you would
like to invest. Look at surrounding properties’
condition and maintenance for an indication of the
state of the area.
2. Determine what the best use of the building is.
If you are planning on converting the property to
more units make sure you go the legal route and
get council approval.
3. Compile an accurate feasibility study of the
property. Ensure that the numbers in the feasibility
are not inflated. Potential rental income should be
enough to cover operating expenses, the bond,
unforeseen expenses and provide some profit.
4. Where possible, buy a building with vacant
occupation, this means you can screen the tenants
from scratch and don’t inherit bad apples from the
previous owner.
5. Based on your feasibility, compile an annual and
monthly budget for the property.
6. Stay within your budget. Use monthly reports from
your management agency to make sure you are
financially on track without surprises.
7. Visit the building regularly in person to see how
your property is doing. This is important, even if you
use a management agency.
8. Ensure you are billed accurately by municipality and
that you recover utility costs from your tenants.
9. You cannot make it on your own. Work with
trusted funding partners that share your vision
and their thought leadership as well as a property
management agent that is savvy and has expertise
with your type of property and area.
10. Don’t be in a rush to grow. Make sure you stabilise in
between investments. Acquire, fix up and see that
all goes well before investing in your next building.
1.
“Residential tenants in the inner city are predominantly
African. We intrinsically understand this market’s needs and
challenges and more importantly how to create value for
tenants and landlords.”
“We go beyond management, we are proactive and have
an open door policy to engage tenant conversations. This is
much more efficient than evictions and legal battles. We also
run incentives to encourage tenants to pay on time and stay for
longer periods in one building.”
5 Tips for successful property management
1.
Screening tenants is the start of successful property
management. This way you keep out criminal
elements and defaulters from the start. Work with
a trusted property management company that
knows what to look for.
2. Security must be tight including access control.
3. Building rules must be communicated to tenants
and adhered to.
4.
Tips for investment
“There will always be challenges and you may feel that you are
not going to make it. My advice to potential property investors
is to talk to and work with people and management companies
that have experience. Approach them early on, not only when
there is a crisis.”
Solly sees great potential in inner cities and in South Africa.
“I have been an entrepreneur all my life and appreciate the
opportunities that have been granted to me. Property is an
immovable asset that gives long term returns irrespective of
the market. If you add value and time while working hard you
will make your money back.”
Take Shape Property Management Quick Facts
Units Managed – 3 500
Number of buildings managed - 87
Staff members - 133
For more information visit Take Shape Property
Management’s website at https://tsproperty.co.za
Ensure your building manager can deal effectively
and empathetically with tenant issues and
SOURCE Take Shape Property Management
complaints
5.
Ensure your building is clean at all times.
SA Real Estate Investor Magazine APRIL/MAY 2020
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