MANAGING
· organising and managing the collection of the
tenant’s deposit;
· preparing the inventory and conducting a state of
repair assessment on the property;
· checking in the tenant and agreeing the inventory
· collecting the rent from the tenant;
· transferring the rental income to your account and
providing you with statements of account;
· managing and arranging any necessary repairs;
· inspecting the property periodically and feeding
back any comments to you;
· providing tenants with notice at the end of the
tenancy;
· re-letting the property as quickly as possible and
minimising any ‘down-time’;
· dealing with legal aspects of the tenancy/property,
including evictions, non-payment, harassment or
problems with squatters.
So how do you decide what to delegate and
what to do yourself?
Again this is where experience comes in. What
are your strengths and weaknesses? If you are
great at numbers and a f inancial whiz, it might
make sense for you to keep control of the financial
side of your properties but delegate day-to-day
responsibilities to your management agency. The
main problem with managing your own investment
property is usually the time and energy it takes on
monthly basis. You have to carefully screen tenants,
maintain applications, do the credit checks (those
cost as well), ensure the lease agreements are
correct and up to date with the law, inspect the
properties on regular basis, collect rent, organise
repairs and so on. If you are already very busy,
then you can maximise your time by utilising a
property management company. The same goes for
legal know-how, property management agencies
are up to speed on all the latest laws and legal
requirements when it comes to letting your property
out and managing it.
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Residential Handbook 2013
Choosing your property manager
The first step in choosing the best property manager
is to find one that suits your needs, so look for a
property manager that specialises in your area of
investments.
The next thing you want to make sure is that they
manage properties. It might sound like a no-brainer,
but ask them what other properties they manage,
how many they manage and what services they
provide that you will benefit from.
Don’t narrow your choices too much, consider
multiple property management firms when you make
your decision, cover the basics and decide on a few
companies you want to meet with.
Come up with a list of questions for the companies
you are going to meet with. You don’t have to show
them the list, but have a checklist to ensure they will
cover all your needs.
Compare commission. While you don’t want to go
with the most expensive firm, you also don’t want to
go with the lowest bidder. Try to find a compromise,
or middle ground, someone who is charging
reasonable commission and will meet all your needs.
Lastly ensure that they have two very important
documents, the first is a fidelity fund certificate in
order to trade, and the second is accreditation with
the Estate Agency Affairs Board.
Some questions to ask
How do they advertise vacancies?
A great management f irm will be aggressive in
their advertisements. You don’t want your property
staying vacant for too long. Remember that you
have to bear the burden of any vacancies, not the
management firm.
www.reimag.co.za