Real Estate Investor Magazine South Africa May 2013 | Page 28

MANAGING

BYJOHN ROBERTS

Manage Your Tenants Right
And reap the benefits of
long-term capital growth

A

CQUIRING buy-to-let properties
w ithin the investment por tfol io
offers long-term capital growth while
providing short and medium-term income from
tenants occupying the house.
However, a property can be beautifully
designed and in a highly desirable areas, but
if tenants are not correctly managed and the
occupancy is not maintained at sufficiently high
levels, the profitability of that rental property
will collapse.
Unhappy tenants vacate at the end of their
leases if not beforehand. This reduces the income
due to unpaid rents and incurs costs in finding
new tenants either via advertising fees or in the
commissions paid to agents for vetting potential
new tenants.

Rental collection by a real estate property
manager does not start on the date rents a