If you’ve ever searched for a good property manager in JHB , 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 why they use property management companies.
How Do you Select Best Property Management Company in JHB ?
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.
Management fees can be a Flat rate about $250 for a single family home or 6% of rental income for larger properties.
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.
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What Is Real Estate Management?
If you sell your own house, you will save a substantial sum (the typical estate agent's fee is between 1.5 and 2 per cent, which pays 2,250-3000 pounds on a 150,000 pounds property). The drawback is the time and work that you will have to put in yourself. If you try but fail to sell your house, you won't save anything, but you still lose the time and the opportunity to move.
What does an estate agent do ?
A good estate agent will visit your property and suggest three possible prices (which includes other advice on what to ask them at this stage.) Once you have chosen an agent and the price you want to put it on the market for, agent should:
- Send you a contract setting out their terms and conditions. Read this before you sign.
- Measure and photograph the property to produce the sales particulars, checking them through with you.
- Help you to secure and Energy Performance Certificate. You don't have to use the agent to provide this service and they should charge around 50 pounds for the certificate.
- Put a 'For sale' board outside your property (assuming you want one; your estate agent should give you the option).
- Advertise your property locally, on the internet and via newspapers. It's important to negotiate this as it doesn't always happen automatically.
- Advertise it at their premises and via their website as well as directly to a list of potential buyers.
- Arrange viewings for legitimate buyers (show people around your house if you aren't there).
- Receive offers, communicating them to you in writing and negotiating on your behalf.
- Liaise between your buyer, you and your solicitor.
- Arrange the handover of key on completion day.
You could do most of this yourself. However, there are various benefits a good agent brings.
In any field, experience is valued. Someone who has spent years helping people buy and sell property should be able to forestall problems, keep the process moving efficiently and effectively, and offer informed advice when decisions are required.
Sales and marketing
Selling is a skill. No one is going to persuade an unwilling buyer to purchase your property, but a professional sales person will be able to communicate effectively, pointing out advantages and answering queries that might otherwise have put someone off. In addition, a good agent will have the resources to market your property nationally via their website.
Inviting strangers into your home carries a risk. You don't know who they are and you can't vet them, but you could find yourself alone with them in your home. An agent who accompanies viewers means that you won't be put in a vulnerable position.
You can never be sure if a viewer is genuinely interested in your property, and some people seem to make a hobby of looking around houses when they have no intention of buying. A good agent will check if the buyer is serious and ask if they have a Mortgage Agreement in Principle. If they haven't arranged a loan (which means there's no guarantee they can afford to buy), the agent can set this in motion.
Make sure the contract clearly states that you won't be charged commission if the sole agency contract has ended.
Estate agents charge a percentage, plus VAT, of the final selling price. Rates vary, but are typically 1.75 per cent for sole property, and 2-3.5 per cent for multiple or joint arrangements.
These rates are negotiable, but remember the agent has been through this process more times than you have. It is worth asking the estate agent how much in real terms the fee could be, this will help you to draw up a budget.
Ready, willing and able purchaser
If the contract contains a term stating 'ready, willing and able purchaser', walk away - don't sign any contract with it. It will mean that you'll still have to pay the estate agent for finding you a buyer even if your situation changes and you have to withdraw from the sale.
Choose an agent that gives you a few days for the money to transfer before charging interest. And make sure it requires payment when the sale is completed rather than when contracts are exchanged. Do not hand over the authority to pay the estate agent to anyone else (known as irrevocable authority - you should avoid this). If you have a complaint about the service provided, you won't have the power to withhold payment.
Avoid lengthy tie-in periods of anything over eight weeks. And remember to factor in the notice period, which is often two weeks - you can't usually give notice until the minimum contract period is over.
Check what happens when the contract ends. Some agents operate a 'six-month rule' whereby you have to pay them if a buyer they introduced buys your home within six months of a contract ending. But some agents go further and state that you have to pay this, no matter how long it is after the termination of a contract.
Your rights when dealing with an agent
It's your legal right that estate agents must do the following:
- Pass on all offers on a property. There have been cases where offers have not been passed on to the vendor simply because a person making a lower offer has not agreed to use the estate agent's mortgage services.
- Pass on offers promptly in writing. They shouldn't just telephone you to inform you of a offer.
- Use clear contract terms.
- Reveal to you any financial interest that they have in offers made on your property. For example, they are not allowed to collude with property developers so that they only offers they pass on to you are those that suit their interests.
If you suspect that an agent has acted in breach of these regulations, you should contact the local authority trading standards department together with the redress scheme they are a member of and professional association, if they are a member.
What Is Real Estate Management?
Property management means exactly what it is; control, or management of a certain property on behalf of an owner. This industry has expanded in the last years bringing about the need of more project managers. If you are looking into working as a property manager, there are certain skills and attributes that you should take into consideration. Remember that as someone who manages properties, you will be given the sole responsibility of entrustment that is why if you are serious in joining this industry; you should have the following traits.
1. Knowledgeable with the governing laws. A good manager is one who understands and is knowledgeable about the many laws and ordinances of a specific area. This is important so as to avoid any conflict with regards to the management of real estate and other properties. Certain laws may vary from cities, which is why understanding them and knowing how they work will best work to your advantage. It is always good to be in the know.
5. Willing to grow. You should not only limit yourself to a particular field. Bear in mind that the industry of property management will only grow in the next couple of years due to the fact that more and more people are expanding their properties. As a good property manager, you should be able to ride the tide of property management and consider your professional growth. This will not only be beneficial in terms of your career, but will also reflect in the kind of service you deliver.
When considering working in the property management, it is always best to review your skills and qualifications in order for you to assess your personal capabilities. Bear in mind the above characteristics, in order to be a great property manager.