Property management is a wise decision for landlords
Category Rentals
Investing in property comes with significantly more administration and management compared to other types of investments.
While a rental investment can be financially rewarding, looking after the property, attending to the inspections and visits to ensure the property is maintained in a good condition and managing the tenant and rent collections require time.
Where other asset classes are passive investments, a property is an active investment which requires a large commitment of time and effort and that is without having to deal with challenges such late payment or a tenant who does not pay at all.
It becomes especially challenging if you have multiple properties, or do not live near the property or have a busy job or lifestyle.
This is where a property management solution can make all the difference by taking care of critical tasks which maintains your income and property in an optimal manner to ensure your investment delivers a favourable return on investment.
Some of the important tasks that a property manager takes care of include:
- Setting the right rental rate for the particular property and area so that there is a balance between maximizing your monthly income and maintaining a low vacancy rate.
- Marketing and advertising the property to attract the right calibre tenants and ensuring all checks including affordability and payment track record is done.
- Handling the incoming and outgoing inspections and ensuring a check list is signed by both parties and that the property is handed over in a good condition with all repairs and reparations done.
- Collecting and depositing monthly rent payments timeously and payment of properties costs such as utilities, levies and the like and utilising a property management to reconcile payments etc.
- Managing the tenant and legalities around late or non-payment including sending of demand letters and legal action.
- Managing the tenant-landlord relationship by handling routine and emergency maintenance, undertaking routine inspections and facilitating conflict resolution when required.
- Managing vendors such as maintenance and repairs and other suppliers and ensuring the jobs are completed timeously and to budget.
- Managing legal compliance from the outset by ensuring correct documentation, lease agreement, FICA and other requirements to ensure that the rental meets all legal requirements.
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Author: Gina Meintjes
