The Importance of a Property Manager for your Real Estate Investment
Category Property Advice
When you invest in real estate, especially if it is your first-time, it is important to collaborate with an expert property manager as they will offer the right tools, knowledge and industry know-how to ensure that your investment succeeds. A property manager can be defined as a third-party service provider who is assigned to take care of your property in exchange for a monthly fee.
The responsibility of a property manager is multifaceted, and they typically provide marketing, cash-flow services and operational services.
Marketing Services
Oftentimes, property owners are new to a specific market and haven't yet grasped the intricacies of the sector. In this case, the more experienced property manager will guide the owner in various ways, including:
- Conducting market research on the rental prices of comparative properties and suggesting appropriate (or market related) rental prices to the owner.
- Implementing advertising campaigns on various platforms. (Print and digital)
- Meeting with potential tenants and introducing them to a property.
- Conducting credit checks and managing the tenant selection process.
- Cash-Flow Services
A property manager can save an owner significant time and help reduce their stress by taking care of the necessary payments and collections relating to their property. Not only will they ensure that expenses are paid on time, they are also experienced in getting tenants to pay their rent with minimal hassle. Managers will make collections and payments on an owners behalf, some of their cash flow duties include:
- Collecting rental payments from tenants
- Paying recurring expenses, such as electricity and water
- Paying certain taxes
- Paying special once-off expenses such as repairs
- Paying bond installments to the financial lender
- Allocating profits to the owner
Operational Services
These services are essential to owners who wish to have a level of protection from potential liability issues with tenants. It is also advantageous to have a knowledgeable property manager to ensure that the property obliges with South African Legislation when rented out to third parties. Operational duties include:
- Managing the day-to-day functioning of a property
- Handling tenant complaints
- Handling tenant evictions and miscellaneous lawsuits
- Selecting and managing maintenance and repair companies, as well as, cleaning companies for common areas.
A property manager is an invaluable resource in keeping a property well-maintained, uncovering and retaining good tenants, handling various tenant processors with expertise, setting a competitive rental price and implementing effective marketing strategies. This will not only ensure that the day-to-day functioning of your property is well managed with the highest level of skill, but it will improve the profitability for the owner by keeping expenditures low and income high.
Property Management with a Competitive Edge
When choosing a property management company, it is strongly advised that you select a company that has a good reputation in managing a diverse range of property types.
At CSi, we have built a property management team with the necessary knowledge and experience in advisory and support services for property developers, bodies corporate and homeowners associations. Our portfolio spans various industries and we currently manage over 7000 sectional-title units, homeowners associations, retail centres and retirement villages across Gauteng, Mpumalanga, Free State and Limpopo Province.
We have developed a management model that is easily tailored to the unique requirements of each client and development. Our unique perspective, knowledge and understanding of the property management market provides us with the necessary tools to guide property owners in the right direction and reach investment success.
If you already own a property in Gauteng, Mpumalanga, Free State or the Limpopo Province and are looking for a property manager or if you are considering buying a property and need more information about our project management services, contact us today and we will guide you through the process.
Author: CSI Property Group