Real Estate Investor Magazine South Africa February 2016 | Page 30

FINANCE The Business of Buy-To-Let The Buy-to-Let Business Team BY GERT VAN STADEN T he property investment business model is so simple that property investors with sufficient time and expertise could very well manage all aspects thereof themselves. However, one of the most compelling features of a property investment business is the fact that it allows almost every aspect of running the business to be outsourced at very reasonable fees, alleviating the need for in-depth knowledge or experience in the various aspects, such as rental management or trust administration. Property investment business owners can literally appoint a team of experts to take care of everything and merely keep a watchful eye to ensure everyone is delivering on their mandate. For example, appointing a reputable rental management agent frees up time and enables you to grow your business far beyond what would be possible on your own. It also ensures that the rental management is done professionally by a company with all the expertise, resources and systems already in place and that the continuously changing regulations and legal aspects are adhered to at all times. Identifying the right team members But before you can outsource any function, you need to identify the right team members – companies or people that have been thoroughly screened and appointed with a clear and enforceable mandate, and are monitored on a continuous basis. There are many different players in a professional property investment business: from the estate agent, bond originator and conveyancer to the rental management agent, maintenance and repairs experts 28 FEBRUARY 016 SA Real Estate Investor and trust and accounting professionals. However, the process for selecting the right team members remains the same. How to choose the right team members • Make a list of potential partners in each category. Don’t simply appoint the first company you come across. The best place to start is to ask other property investors to refer people or companies that have provided them with good service. • Do your homework! Do some desktop research about each company – check their websites, any news reports about the company as well as any compliments and/or complaints. • Check credentials. Insist on proof that the professional has the required qualifications and that the company is registered with the relevant statutory body or professional association. • Ask for references and check these! Pick up the phone and phone at least one of the references. • Don’t simply compare fees or prices. Check and compare what each company offers and how this relates to the fee or price quoted. Cheap is often more expensive in the long run. This may seem like a considerable amount of work, but the time and effort you invest in choosing the right team members will yield excellent returns, because the right partners will ensure that your business runs smoothly and that your interests are protected at all times. Another option is to join a professional property www.reimag.co.za