Property management is a critical part of a landlord’s success. The art of making money in property investment is not just about buying and selling the property. It is rather about buying the property and ensuring that the tenants pay the rent timeously and good property management processes work to increase the value for both the landlord and the tenant.
Many property investors decide to manage their property themselves to avoid the costs of commission but essentially they are also avoiding the cost of professional help. Today’s investors are faced with a myriad of challenges if they manage the property themselves. For example besides acquiring a qualified tenant to fill the vacancies there is the job of concluding complex lease agreements, credit checks, tricky legal requirements in terms of taking deposits and then the management of the tenant payments and on-going maintenance of the property. Improper screening of potential tenants can be costly if not done properly. It can land into legal liability, risk and also the problematic rent collection issues.
Michelle Dickens of Tenant Profile Network a credit bureau for property owners and agents says that it critical for Property Managers to do their job effectively when managing a property, Michelle goes on to say, “There is no time for complacency: vigilance is essential in quality tenant placement, a resolute attitude towards rent collection and credit control, as well as swift legal action should firmly deter delinquency or damage to property.”
A specialist proactive Manager is key in the process. Paul Stevens, CEO of Just Property says that they implement proper training use impactful property management principles and implement the best systems that they have acquired over many years. “We handle all the red tape and ensure that the property is competitively marketed to tenants, compliant and is managed properly.”
Landlords are always looking for good Property Managers. To find a competent and diligent manager is a matter of asking the right questions before you hire the right property manager.
Questions such as:
1. Does the agency have a dedicated rental department?
2. How many staff will be looking after my property?
3. Is the franchise owner involved in the day-to-day management?
4. Does the property manager do property inspections and if so, how often?
5. What systems do you use for checking tenant’s credit worthiness, rental history and employment?
6. What system do you implement if there is a rental default or payment arrears?