Property Management Myths Debunked.
In the world of property management
, many myths and misconceptions abound. Many individuals and property owners do not fully understand what the term means, and have many assumptions about the effectiveness and necessity of such a service. Some of the most common misconceptions regarding real estate management include the following:
- Only the very rich need to consider the need to have their property managed.
This is one of the biggest myths, leading many homeowners within the mid-level real estate to assume that their property does not require management. In reality, any property that you are renting out to tenants requires management – from day to day property maintenance work
to tenant management, lease agreements, rent collection and property renovation, each of these things is managed by an outsourced, experienced company rather than having to try and do it all yourself as a landlord.
- Anyone can manage a property, and you don’t need to outsource to get the job done.
Another common myth, many property owners think that they are able to handle everything themselves, only to end up with huge stress and problems when they realise just how much work goes into the management of a property. Tenant management
alone can be a demanding job, and without the right experience and skills, it can be extremely difficult to take on something like this on your own – especially if you have a full-time job in addition to managing your own property.
- Managing a property is simply a case of managing tenants.
While this is indeed a big part of the management process, tenant management is only one aspect – things like problem call outs to deal with broken geysers, blocked sinks, leaking toilets and other small issues are also covered, as are maintenance tasks, renovations, leases and every other aspect that goes into the running of a property in South Africa that is being rented out.
- Only local properties can be managed, not overseas properties.
One of the biggest trends in recent years is the investment of overseas property. Many South Africans and other nationalities are looking abroad for properties that they can use as holiday homes for some part of the year, and rent out for the rest of the year. Some homeowners have the misguided assumption that they will be able to handle the rental process from another country – one of the most potentially risky mistakes they could ever make. An overseas property manager is essential to ensure that your property is managed properly, regardless of where it is in the world.
- Property managers are not worth the costs involved.
By far one of the biggest myths is that the management of property will probably be too expensive, and not worth the costs involved. Even small properties can benefit hugely from management services, and studies have shown that well-managed properties are actually more likely to increase in value on a quicker scale than properties that are not managed or ones that are managed poorly. As things like regular upkeep, renovation and other maintenance is done on a routine basis, the property stays in good condition as tenants come and go, making property management a hugely worthwhile investment on many fronts.