Having a property management company on board can largely increase the potential and asset value of any property, provided of course that the right management company is selected for the job, says Chris Renecle, Managing Director of Renprop, a multifaceted property company whose property management division manages and maintains property assets on behalf of institutional and private investors in both the commercial and residential property sectors.
He notes that it is extremely important that the management of commercial or residential property assets is handled by a management company with the right knowledge, experience and qualified individuals to be able meet the owner’s objectives – regardless of whether it is an apartment complex or commercial office space. Renecle says that to ensure an asset is managed correctly, choosing a property management company is a decision that should be given some serious consideration and due diligence. “Not all management companies are created equal,” he says. “Just as there are a wide variety of properties, there are different kinds of management companies that have more experience dealing with certain kinds of assets, be it commercial or residential.”
According to Renecle, due to the fact that management of real estate can often be a complex matter, it is important to work with a management company that specialises in the kind of property that needs to be managed. However, there are a number of companies that have the capability to handle more than one category as they will have different divisions with experienced individuals who are able to do so,” he says.
Renprop Management’s distinction is that it offers an end-to-end property solution. This division manages the facility and contractors, collects the levies, manages the administration and then rents out and sells property assets like no other. “We got into property management as we became tired of other management companies managing our own assets poorly. We have learnt the through trial and error over the years and we now have world class tools and intellectual property that have been imbedded in our disciplines,” says Renecle.
He points to some elements to consider when looking at property management companies:
- The company’s reputation within the market place and industry
- The number of years that the company has been in business
- What the accreditations and affiliations of the company are
- What types of properties the company specialises in
Renecle notes that the initial step in the selection process should be to contact the prospective property management company and ask them if they are able to manage the property in question. They should be able to provide a written proposal which contains a description of the services that will be provided, along with reports and management fees. Renecle says that on request the management company should present a variety of references and a track record of properties under their management.
“There is a wide array of services that property management companies offer depending on the client’s objectives and needs. However the basic services that can be expected from a standard management agreement are the collection of rentals and rental analysis, bill payments, maintenance of the property, financial reports, tenant relations and the supervision of employees,” explains Renecle.
He adds that the management fees are normally charged based on a percentage of income collected with a minimum monthly base fee. The fees are negotiated on a per property basis and depend on many factors including condition, location and size of the property.
If the proposal is favourable, the next step is to visit the management company and meet the people who will be assigned to the account, such as the property manager and the accounting staff. The client can also request to visit similar properties to theirs which the company currently manages.
“A good management company will be able to increase the asset value of the property, increase the potential rental income and protect the property investment value. It is important to choose a management company that is passionate about making a difference to the investment,” Renecle says.
Renprop Management has recently added just on 2 000 units under management to its already impressive property management portfolio. Whether it’s the 339 units at its flagship ‘The Link’ development in Rivonia or a six-unit estate in Sandton, each complex gets the necessary attention to detail as any of the bigger players in its portfolio.
Operating in the broad Gauteng compass, this year sees Renprop Management taking on additional investment complexes where it manages and rents units on behalf of investors, as well as manages the entire complex common property and collections.
“Within the Renprop family of dedicated property businesses, you will find specialists in sectional title and home owner association affairs that are passionate about making a difference to your investment,” Renecle concludes.
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