Real Estate Investor Magazine South Africa July 2015 | Page 28

STRATEGIES The Business Of Buy-To-Let The buy-to-let business team BY KOOS DU TOIT T he property investment business model is so simple that property investors with sufficient time and expertise can 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 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 will have been 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 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, as well as trust and accounting professionals. However, the process for selecting the right team members remains the same. about each company – check their websites, any news reports about the company, as well as any compliments 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 up on these! Pick up the phone and phone at least one of the references. • Do not 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 investment club that will provide access to pre-screened and pre-selected partners who are bound to minimum service levels and are continuously monitored for compliance. “The time and effort you invest in choosing the right team members will yield excellent returns.” How to choose the right team members • Make a list of potential partners in each category. Do not 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 26 Where the buck stops While appointing experts to professionally manage the various aspects of your property investment business, bear in mind that delegating or outsourcing responsibility is not the same as abdicating responsibility. You, as the property investment business owner, remain ultimately responsible for the management and success of your business. It remains your responsibility to manage each one of these team members, to ensure they are fulfilling their mandates as agreed and to swiftly address any problems that may arise. P3 Investment Group JULY 2015 SA Real Estate Investor RESOURCES www.reimag.co.za