How landlords can spot non-performing agents

Normally, landlords hire property agents and managers to get relieved of the burden to manage their properties because they are more experienced than them, but they end up making losses after landing on non-performing agents.
Adnan Mpuuga, the chief executive director of East lands Agency, a real estate company, says there are many ways landlords can spot a non-performing property manager.

Poor communication
Mpuuga says poor communication among the partners is one of the signs that the agent is not performing well. A good property manager should be able to maintain active communication.
“A property manager is supposed to be in charge of every movement and be able to report to the landlord frequently about the property.
“It is not the landlord who is supposed to call the agent, instead, it is the agents to call the landlord,” he says.
Mpuuga adds that when a manager is non-performing, tenants end up dealing directly with the landlord, calling them for issues that should ordinarily be handled by the property manager.

Failure to inspect the property
Mpuuga says non-performing agents do not carry out regular inspections of property and the landlord may end up making losses due to damages. “If the agent is not able to inspect the property regularly, it forces the tenants to vacate without informing the landlord because no one is available to resolve their problems like security, blockage of septic tank or water pipes, which need the agent to work on immediately,” he says.

Mpuuga adds that property agents are supposed to conduct regular inspection of the property to ensure that the property remains in good shape. The agent is supposed to get reports from the tenants, which are supposed to be worked on.
“If the landlords does not get a report from the agent, it means the agent is not active because there is no business which doesn’t have issues be it positive or negative,” he says.

Asking for big commission
Sheilah Namwanje, a property manager, says if the property manager tends to ask for higher commission than the market rate, it is a sign he or she is a non-performer and is money minded. “Property agents have affixed commission that is 10 per cent and there is no way they are supposed to increase that unless agreed with the landlord,” she says.

Namwanje adds that nonperforming agents force tenants to run away because they increase rent without the property owner’s consent.

Getting bad tenants
Namwanje says non-performing managers do not mind about the type of tenants they get because all they are interested in, is commission. “Their duty is to screen tenants before making any agreement, and this includes ensuring you do not end up with defaulting tenants and those that damage property,” she says.

Namwanje adds that before hiring a manager, you have to ask them how they manage rent defaulters. That way, you will tell if they will do a good job.

Dealing with a nightmare tenant

Screening your prospective tenants
As a landlord, you should take every precaution to ensure you don’t end up with a difficult tenant. This starts with getting references and checking backgrounds.

If you use a letting agent these should all be taken care for you. When you’ve settled on a tenant, you need to check their background and perform a credit check. Take your time and don’t be rushed by the tenant.
Many experienced landlords will develop a gut feel about a tenant – experience will tell them if someone is not to be trusted, but you can’t rely on instinct alone; you need firm evidence.

When the worst happens
If you have a problem tenant, you can draft a notice which gives them in line with the notice period stated in your agreement.
If your tenant fails to either pay up or leave, the law says you must go to court.

Culled from howsy.com