Rental asset management can make or break your investment

Investing in a property portfolio is done with the intention of benefitting from the rental income and asset value growth – and for property funds, it’s all about the returns.

“It is therefore vital that property funds make use of a reputable rental asset management company for their rental properties to ensure that they don’t put their investments and any returns they may achieve at risk,” says Chris Renecle, Managing Director of Renprop, whose Property Management division has three core competencies: property management, estate and facilities management and rental asset management.

Renecle points out that procuring rental asset management services can largely increase the potential and asset value of any property - provided of course that the right company is selected for the job.

“While it is vital for property funds to invest astutely in the right kinds of properties, it is equally as vital for them that their assets are managed properly in order to attract the right calibre of tenants and to protect the investment. While these are important aspects of property ownership, many property funds see this as an ancillary role to be outsourced to experts as they often don’t have the time and expertise needed to source the right tenants including undertaking all the credit checks, manage the collection of rent and all the other administrative tasks involved,” says Renecle.

Rental asset management companies will typically assist property funds in filling vacancies through marketing the properties, handling all the tenant applications and tenant screening processes, the administration of lease agreements as well as ingoing and outgoing inspections, among other things.

But Renecle points out that not all rental asset management companies are equal and says that the calibre of rental asset management company that a property fund appoints could make or break their investment success.

Renecle notes that managing investment properties isn’t just about the bricks and mortar and collecting the monthly rentals from tenants - a good rental asset management company should also focus on the bigger picture. “This includes maximising rental returns, lowering expenses and limiting vacancies. The four key focus areas of an asset management company should be the quality of the book, collections, governance and reporting.”

“We are known as a no nonsense management company which investors can trust. We are interested in growing the asset value of the properties we look after with strict social controls, sound budgeting and administration, zero tolerance for bad debts and impeccable advisory work,” says Renecle

Renprop manages and maintains property assets on behalf of institutional and private investors in both the commercial and residential property sectors.

Renprop Management is accredited with the EAAB, NAMA, SAPOA and is a registered Financial Services Provider and debt collector subject to the scrutiny and audit of all affiliations.

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