PROPERTY MANAGEMENT

roperty management is the process of managing a rental property by attending to the day-to-day activities centred around the property , and is the key to maximising the return on your property . It is divided into two main components : tenant placement and rental management .

1 . Tenant placement

The success or failure of your property investment begins with the placement of a quality tenant . To achieve this , you will :

• Value your property ’ s rental amount . Compare your property with other similar properties marketed for rent in the same location .

• Prepare your property to the required standard . This includes cleaning and completing required maintenance .

• Advertise your property to prospective tenants . Take quality listing photos , put together an attractive property description and place this in applicable advertising media , such as internet property portals , printed and online classifieds .

• Manage enquiries from prospective tenants and arrange viewing appointments . Arrange access to your property with interested tenants and agree on times for viewing appointments .

• Screen your tenants . Interested will need to go through a tenant screening process to determine whether they qualify . They will submit your filled-out tenant application form with various required documents . Screen the prospective tenant against your screening criteria to evaluate their ability to afford the monthly rent , including performing a credit check and conducting reference checks .

• Preparing your lease agreement and other required documents for signature . Prepare the lease agreement and meet with your new tenant so that both parties can sign it ( and where applicable , additional documents , such as body corporate rules ).

• Onboarding your tenant . Once your tenant has signed their lease and settled their required monies ( security deposit and first month ’ s rent ), you will ‘ onboard ’ your tenant by conducting a joint inspection of the property and handing over the keys on the agreed date of occupation .

2 . Rental management

Once you have placed a quality tenant , your next key to property investment is the consistent management of your tenant and your property (‘ rental management ’). You will :

• Bill rent , utilities and any other charges to the tenant each month . The utilities and other charges is according to bills you receive from the body corporate and / or the local municipality .

• Receipt the rent and other monies billed . If these amounts are not receipted by the first of the month , you will follow up these late payments according to your predetermined late-payment procedure .

• Attend to tenant complaints and queries , and enforcing lease compliance . There may be occasional complaints about , or from , your tenants which you ’ ll attend to . Also , enforce correct tenant behaviour in terms of the lease agreement .

• Property maintenance . You will communicate with contractors , arrange their access to your property , approve quotes and quality-control work done .

• Inspections . I recommend that you schedule inspections at least every six months , maintaining records of each inspection .

DAVID BEATTIE

Author of The Expert Landlord ( available from 15 February in leading bookstores and on Amazon ). He is the founder of The Expert Landlord website ( www . theexpertlandlord . com ) and PocketLet ( www . pocketlet . com ), a mobile app for private landlords . He is also founder and director of Chorus Letting , a rental agency managing residential properties across Cape Town and Johannesburg .

• Do general administration and maintain necessary records for tax , legal and financial purposes . Besides keeping the required documentation for submission to SARS , maintain a comprehensive and reliable filing system for legal purposes . Manage the property accounts and finances of your property .

• Your tenant move-out . If your tenant vacates at the end of their lease , on the date of moving you ’ ll conduct a joint move-out inspection . Compare this inspection with the move-in inspection and deduct the cost of damage caused by the tenant ( if it exceeds legitimate wear and tear ) from their security deposit . You ’ ll arrange any required repairs or cleaning .

32 FEBRUARY 2018 SA Real Estate Investor Magazine