How do they show properties?
The process they use to show properties not
only describes the precautions they use, but also
indicates whether it will be successful in obtaining
quality tenants. For example, if they only show
properties Monday-Friday 9am-5pm, this will
decrease your odds of getting a tenant with a
regular job.
How do they screen tenants?
This is really important. Make sure that they are
using background checks. A simple background
check can find any negative history and keep you
from huge losses. All it takes is one bad tenant to
turn you off to rental properties.
How will they go about collecting past-due
rents?
Any legitimate firm will have a process in place.
Make sure that it sounds like a good one.
How will they control maintenance costs?
Make sure that they will keep up with regular
maintenance and find out beforehand about their
When you have made your choice it’s time for the
paperwork, the contract. Make sure all the terms
and conditions are iron clad and that all the services
and the fee structure are clearly set out. The term of
contract should clearly define all specific dates for
the tenure of a management firm in your services,
including the start date and end date, if known prior
to the signing of the contract. Oftentimes, property
managers sign deals on a one-year basis with owners.
Though you hopefully won’t have to terminate
a contract with a management firm due to poor
revenues or a lack of quality on their part, there may
come a time when you don’t need their services any
longer. This is why it’s vital to expressly indicate in an
agreement that you have the right to end a contract
during a given period.
The right information will lead you to the right
decision, and a property manager can help turn your
property investments into a well-oiled machine.
processes.
How do they deal with after hour
emergencies?
If they don’t have a system in place for these types
of emergencies, why would you pay them money in
the first place?
What type of accounting do they offer owners
(you)?
It is always good to find out what kind of accounting
services they offer. Remember that great accounting
means less work for you when tax season comes.
What type of liability insurance do they have
to protect you from lawsuits?
This one is really important. You always want to be
covered in this business.
www.reimag.co.za
RESOURCES
Just Property
Residential Handbook 2013
43