Real Estate Investor Magazine South Africa June 2018 | Page 27

INVESTMENT SERIES
next key to property investment is the consistent management
of your tenant and your property.” The process of managing your
rental property includes collecting rent and any other monthly
fees, as stipulated in the lease. While this is simple enough when
you only own one rental property, it can become complicated
and labour intensive if you have several tenants to keep track of.
Apart from that, you’ll also need to take care of any mainte-
nance or repairs to the property. This includes emergencies like
leaks, as well as possible renovations or upgrades. You’ll need to
find a suitable contractor and manage their work. This includes
arranging for a suitable time with the tenant, as well as checking
the quality of the work once completed.
As the landlord, you’re also the line of communication be-
tween a body corporate and your tenant. In the case that you
receive a complaint about your tenant, or your tenant is unhap-
py about something, you’ll need to step in and ensure the right
course of action is taken. This is just one of the ways in which an
airtight lease can make your job easier.
Towards the end of the tenant’s lease, usually about two
months before the lease expires, you’ll need to communicate with
the tenant to find out if they’ll be renewing. If not, you’ll need
to set up reasonable show dates and times with the tenant. Upon
vacating the property, you’ll need to do another walk through
with the tenant present. This will allow you to note any damages
or areas that need repair or updating. In many cases, landlords
will secure a set fee for cleaning when signing the lease. This is
then used to restore the property and get it ready for the new
tenant. Once again, these are terms you’d need to include in the
original lease agreement.
What to consider
As a first time landlord, it can be overwhelming to have to deal
with all the day-to-day work that goes into running a property.
It’s for this reason that many investors opt to enlist the help of a
professional. In some cases, however, you may not need to.
Be honest about the time you have available - and whether or
not that time coincides with being able to successfully manage
your rental property. Also consider whether or not you want to
be involved in the nitty-gritty of being a landlord. If you enjoy
doing maintenance and repairs, and don’t mind rushing over if
your tenant has an emergency, you might not be in desperate
need of a management service.
In practical terms, consider whether or not you have the nec-
essary knowledge of legal and property matters to manage your
property in the right way. It could be that you simply need to
outsource the technical services like setting up a lease, while opt-
ing to deal with the day-to-day matters by yourself. Finally, take
into account how many properties you own. If you have several
rental properties with several tenants, it’s probably going to be
easier to make use of a professional service. Again, this comes
back to whether or not you have the time and desire to make
this a full-time job.
SA Real Estate Investor Magazine JUNE/JULY 2018
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