RE/MAX SELL-ECT adds rental management to its service offering
While many property investors are taking advantage of the opportunities found in the current market and purchasing property to build a rental portfolio, not all of them want the burden of managing the rental properties themselves.
“This is why the KwaZulu-Natal branch, RE/MAX SELL-ECT has decided to launch a rental management division that offers a service to property owners wanting a professional rental agent to handle the ins and outs of their rental properties,” says Kevin Reddy, Broker/Owner of RE/MAX SELL-ECT “Appointing a professional rental management agent can be a cost-effective and efficient solution to managing a rental property. However, currently there are no professional rental agents or departments in the area in which we operate, even though property investors are purchasing rental property here.” Our primary areas of operation are, Phoenix, Avoca, Broadlands, Mt Edgecombe, Verulam, Newland East and Newlands West, Parlock, Bakerville and surrounding.
Reddy notes that due to the demand for a professional rental management service and the lack of available agents, RE/MAX SELL-ECT will open up their service to other estate agencies in the area. “Most agencies in the region do not have rental divisions or shy away from this business due to the administrative tasks of management, collections and problematic tenants. We aim to address the need and become the area’s leading rental management service specialists. For a portion of the rental income, we will screen potential tenants and conduct a full credit check as well as tenant history. We will also ensure the timeous collection of rentals, levies, rates and taxes each month,” says Reddy.
He notes that very often property investors may have several rental properties in different areas, which can at times mean that they are unavailable to attend to certain issues that tenants may have. This is where the service of a compliant rental agent that the owner can trust becomes an essential part of the process.
According to Reddy, there are many other advantages to having a professional rental agent handle the management of a property owner’s most valuable asset. One of which is determining a fair, market-related rental price that can be charged based on the area and average rental for units with similar offerings. A rental agent can perform a comparative analysis of the rental market in the particular area the rental unit is situated in, which will not only provide a rental price guideline, but it will also give the investor an idea as to what they can expect to earn from their investment.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that a rental agent can also advise landlords on the legalities of all agreements with tenants and make sure they are correct. He says that it is important that all lease agreements are within the requirements of the law to avoid legal disputes between landlords and tenants.
“Building a rental property portfolio can be an exciting way to realise returns on property investment, however it does need to be managed correctly for the best results. This is why the service that a professional rental agent can provide to property investors is often invaluable,” Reddy concludes.