is property management tax deductible South Africa

How Do You Select One of the Best Property management Companies in South Africa ? 

When you hire a property management company to serve as the liaison between yourself and your tenants, you want to be sure you’re getting the best possible property management services for the money. The services  in South Africa  provides can range from ala carte to an all-in-one inclusive package. Along with that comes an array of fees for each. There is no set in stone fee structure we can provide you. But we can educate you on what common fees to expect and what each is commonly for. In the end it will be up to you to compare company fee structures and choose the best one that fits within your budget. Below are some of the most common fees and what service they provide.

Rental Home Management Services

Commission

This is an ongoing monthly fee charged to the owner to  South Africa   and the responsibilities of overseeing the management of their property. This fee can vary from as little as 3% to over 15% of the monthly gross rent. In place of a percentage some managers may charge a flat monthly amount which again can vary from $50 to over $200 per month. All property management companies generally charge this fee.

Lease-Up or Setup Fee

This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. I guess you could look at it as a “finders fee” for placing a tenant in your property. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Property management companies have been known to require this fee upfront prior to tenant procurement. Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property. This fee can vary from none to as much as the first months rent, and usually is a one-time fee per tenant.

Interesting Facts About Property Managing Agencies in South Africa :

Property Management Websites

Real estate management can help real estate investors realize the maximum potential of their investment. Real estate management is used for all property types, and this includes trailer parks, apartments, homes, industrial plants, storage places, stores, and offices. Proper real estate management can save you a lot of money and aggravation, as well as keeping or increasing the value of your investments. A professional property manager or management company will help you maximize your investment while minimizing any unnecessary costs involved.

A real estate management company will have expertise in property management, as well as the time available to deal with any and all problems. A good real estate manager will help market the property to minimize any vacant units, which decreases your profit. They also normally have the experience necessary to weed out a large number of unsuitable tenants before they even rent the place. An expert property manager will be able to tell good tenants from bad tenants and weed out ones that will end up creating problems or not paying the rent on time or at all. This aspect alone may save you hundreds or thousands on court costs and fees to evict an unwanted tenant.

Real Estate management is when you hire or authorize a professional to manage your real estate investments for you. This includes showing the units, signing leases, doing any repairs and maintenance, and improving the value of your initial investments. A real estate manager will oversee every aspect of your rental property to maximize your income and investment value, while minimizing the costs and unnecessary repairs.

Facts about Property Management

Property Management Inc

If you've ever searched for a good property manager before, then you know how difficult it can be to find a good one for your rental property. There are several property managers out there, probably more than what you really need to bring your property into the market.

With so many choices available, you may find it difficult to choose one for your unit. But don't worry - if you ask the right questions while shopping around for property managers, you'll get a better idea of who would make the best fit for your property. Ask them these questions when discussing your property to see if they're the right property manager for you:

1. What type of properties have you managed?

Experience counts for a lot in property management, and it can separate the good ones from the ones you should steer away from. Experience in this field, however, isn't just about the number of years worked in the field; it's also about what type of properties they've managed. Depending on what type of property you have, you can either go with someone who specialises in managing properties like yours or someone who has more varied experience managing different types of properties.

2. How do you screen potential tenants?

Some have small sign-up fees but a variety of hidden fees once you sign on and let them manage your property. Avoid getting surprised by such fees, and ask them to indicate all management and service fees included in their service. The more complicated their fee structure is, the bigger the headache (and expense) it will likely be.

9. What can you do that others can't?

This is where prospective property managers will try to sell you on what they offer and how well they set themselves apart from the competition. It's also the part where you assess the intangibles in any working relationship, giving you a better idea of how well they meet your standards. Listen well, take notes, and assess if they provide what you're looking for.

With so many choices available today, finding the right property management company can be difficult. But by asking the right questions and doing your research beforehand, you'll find that all the hard work you put into finding the right manager will be worth it. Once you find the right one, your property (and wallet) will surely thank you.

What is a Property Manager?

Property Management Inc

All property management companies will promise you much the same services. Here are some of the more important service's you should be receiving for your money.

Fees:

Management fees can be a Flat rate about $250 for a single family home or 6% of rental income for larger properties.

Functions:

Accounting Services:

o A good management company will provide monthly statements and make them available online.

o Be available to answer any questions you have about your statements or costs.

o Issue an IRS 1040

o Collect and deposit your rents in a timely manner. We like to see within three days.

The nice client who never causes trouble doesn't get the same level of service as the client that is watching and letting management know they are hired for a reason. Your job is not to make friends here, but to respectfully let the management company know you are a concerned owner.

Thanks for Reading