Let property managers handle your assets
If you have a number of houses but do not want to go through the stress of maintaining them and collecting rent, you can use the services of property managers. Photos by Faiswal Kasirye.
What you need to know:
Some people have property but do not know how to get and handle tenants. With property managers, these cease to be any of your worries.
After one has finished putting up a commercial house or property, the next big thing is looking for market for the property and managing it.
However, many property developers today are faced with the dilemma of whether to manage their own property or hire a property management company to do the work. What is becoming a trend today is the use of property management companies which handle the collection of rent, maintenance of the building and also looking for tenants.
The property management companies also handle issues such as advertising and position the tenants to attract customers for all their businesses. Before you settle down for one though, it’s best to assess if you really need their services.
WHAT THEY DO
Dan Mudeeka, a real estate expert, argues that whereas few will usually opt for a property management firm, they do have a lot of benefits. He says property management companies deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues.
He adds, “They respond to tenant complaints, and even pursue issues such as evictions. A good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Finally, a management company is an independent contractor, so you avoid the hassle of being an employer.”
DOWN SIDES
Although hiring a property management company has many advantages, using one can be expensive. Such has been left for only those with large commercial property and those developers who have high end facilities. Dan Mudeeka, a real estate expert, says a low end property developer would rather man his own belonging.
And, even apart from the cost, relying on a property management company is not for everyone.
CONSIDERATIONS
Number of property
Herbert Opolot, a real estate developer, says managing your own units is tedious and sometimes running after the tenants to pay is stressing. Opolot, who owns units in Makerere, says he hired a property management company to handle the running of his houses. He says “I only wait for money every end of the month peacefully.” The more rental property you own and the more units they contain, the more you are likely to benefit from a management company.
Proximity
Joyce Akello bought her house while still living abroad; however, when they decided to rent it out, they had to hire a management company to handle their collections and maintenance.
“If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar,” she says
In need of a good deal
Dan Mudeeka, a real estate expert, says “Management firms will advertise your house with clear dos and donts for potential tenants. If you wish to get good tenants who can maintain your house, keep it safe and keep it attractive, then you need to screen them and get only the best.
Time
For those who don’t have enough time or live far away from their property, but still want to maintain their holdings, a management firm allows you to spend your time growing your business, including searching for new property, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.
Additionally, if you are suddenly inundated with management tasks. If your business is growing, at some point you may find that you need a substantial amount of help to manage everything properly. At that point, it might make sense to hire a management company.
Affordability
Engaging a property management company is a smart choice if you can afford the fees. These will demand a certain percentage to be able to execute the task. This usually ranges from five t0 ten per cent of the total cost of the property.
You don’t want to be an employer
If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee, and neither are the people who work for the company, by using one you avoid the hassles of being an employer.
You used a loan to construct your property
If you used a loan or any sort of financial assistance to construct your house, then it is advisable to hire a reputable property management company to ensure that you get clients for your house and also be able to use the funds sparingly. James Taka constructed a commercial property in Ntinda using partly his finances and also a loan. He used a property management company to handle his property which included collecting rent and also maintaining the house.
Taka explains that he was disciplined with paying back the loan because the company managing his property was paying directly to the bank.
HOW TO FIND A GOOD PROPERTY MANAGEMENT
All property management companies are registered under the Association for Real Estate Agents Uganda.
Depending on the terms and conditions of work, you can choose from the various companies that are providing property management services. These services range from just managing your property to also handling all other needs. Therefore, with the boom in real estate today, hiring a good property management firm will help boost your income and also sustain your property.
