The major mistake any property owner could encounter is to underestimate the human capacity for mischief by naively thinking he could handle the management of the property without the requisite experience.
The task of managing a property is an intricate and delicate one that, if not well handled, could jeopardize your investment in real estate, and on the other hand, could give respite to property owners and occupiers.
The first thing to decide as a property owner is whether to hire a property manager to handle every aspect of the property or to self-manage it.
If the owner opts to do it himself/herself, chances are that he/she may not be adequately equipped for the task as different problems will crop up later that require expert handling.
The ideal thing for a landlord who desires his peace of mind is to hand over the management of the property to a professional who has competencies in that area and who is versed in handling various categories of properties.
The danger of using non-professionals is that wrong tenants might be taken into the property, and when this happens, the landlord might not enjoy the desired peace, and the property may subsequently lose value.
The professional estate manager is versed in property management and takes inventory of furniture and fittings provided by the landlord as well as use his/her knowledge of the industry to determine the most appropriate period for rent review.
In addition, the property manager also enlightens the landlord and tenants on the various charges and payments due on the property to avoid controversies.
Where the professional property manager is allowed to handle the day-to-day running of the property, both parties to the agreement – the landlord and the tenant – would benefit immensely. The landlord would be saved from insults and stress of running after unsympathetic home users, while the tenant would not suffer intermediate rent reviews or have the roof removed thus exposing his/her family and belongings to the elements as a means of forcing him/her out. The person in charge of a property must be knowledgeable in the dynamics of management.
Irrespective of the location, the property manager must be able to determine the most suitable type of tenants for the property, whether they would be able to sustain the rent or not after the expiration of the initial payment and whether they would add value to the house or leave it.
The manager must make sure that he tenants make advance payment of certain amounts as caution fess proportionate to the rent to make up for damages of the property. He must also ensure he/she gets good referral on the tenants possibly from their employers and bankers.
The property manager must guarantee that he/she puts quality inhabitants in the property keeping in mind the end goal to stay away from harms to the property and cases in future. He/she should have the capacity to decide the lease increase period and rate, and in the meantime, ensures that the lease is not crazy. He/she should have the capacity to check the foundation of the inhabitants and get an assurance that they will do a few repairs on the property they are possessing.
The property owners also need not fear the professional fees of the property manager especially, one who belongs to the Nigerian Institution of Estate Surveyors and Valuers, whose members are regulated by law.
The law permits them to charge in the vicinity of five and 10 for every penny of the gross lease as administration expenses, which is payable by the property proprietor.
As opposed to mainstream thinking, the business is not an extremely beneficial one in light of the fact that separated from the way that the expenses chargeable are directed, the supervisor is gotten amongst landowner and occupant, who tend to fight.
Points to note:
- Don’t assume that you can manage the property on your own
- Engage professional property managers
- Property manager must screen all potential tenants
- Property manager must make peace between the landowner and the tenant
Property manager must enlighten property owner and occupiers about the relevant charge