Blog

By Dorange Ousa, TARGET HOMES LIMITED.

Truth be told! Real estate, and to be precise in Kenya, is taking over investment opportunities leading us to the aspect of property management.
What comes to mind when you hear of property management? This is looking after a residential, commercial or industrial property on behalf of the proprietor. Lands can also be managed on behalf of the owner at a monthly standard fee. The person in charge of overseeing these properties is known as a property manager. It can either be an individual or a real estate agency or company that takes up the role. 

Good property managers have an in-depth knowledge of statewide and national laws regarding the proper ways to handle tenants once they take up their roles. Some of these roles include;
1. Responsible for Managing Tenants
A property manager may be involved in;
• Finding Tenants: Property managers are responsible for filling vacancies. They will advertise the rentals. They also understand what attracts tenants, so they can offer tips to help makeover the property.
• Screening Tenants: They do screening, including running credit checks which decreases the chances of tenant turnover.
• Handle Complaints/Emergencies: The property manager may deal with maintenance requests and other emergency situations.
• Handling Move Outs: When a tenant moves out, the manager is responsible for inspecting the unit, checking for damages and determining what portion of the security deposit will be returned to the tenant.
• Dealing with Evictions: When a tenant does not pay rent or otherwise breaches the terms of a lease, the property manager understands the proper way to file and move forward with an eviction.
2. Knowledge of Landlord-Tenant Law
Good property managers have an in-depth knowledge of statewide and national laws regarding the proper ways to:
• Screen a Tenant
• Handle Security Deposits
• Terminate a Lease
• Evict a Tenant
• Comply with Property Safety Standards
3. Supervising Responsibilities
• Other employees: If there are other employees in the property, such as security personnel and the property caretaker, the property manager is responsible for making sure they are doing their job. The property manager can set their salaries and even fire them.
• Vacant Properties: Property managers are often hired to look after vacant properties to make sure there has been no vandalism and to perform routine maintenance. They also make sure contractors and other repairmen are completing their work in a timely manner.
4. Responsible for Rent management
A property manager’s rent responsibilities could include:
• Setting Rent: The property manager understands the market rates putting him/ her in the right position to set the rent levels to attract tenants to your property. The property manager looks at the market where the property is located and analyzes comparable properties in the area.
• Collects Rent: He/ She will set up a system for collecting rent from tenants. To ensure optimal cash flow they will set a date to collect rent each month and strictly enforce late fees.
• Adjust Rent: The property manager can increase the rent each year, according to individual state and/or municipal law. They can also decrease the rent but within the prevailing market rate.

Other responsibilities include; Paying the landlord after rent collection, maintenance and repairs roles, managing the budget/maintaining Records and tax responsibilities. The property manager can either file taxes for the property or inform the landlord on how to file taxes for the investment property.

“To be a landlord you must be tough, take your time choosing tenants, perform an in-depth background check, and keep track of the properties. The biggest nightmare tenant stories usually come from landlords who do not know what they are doing. When I switched to a property manager, my life was so much better because I was not dealing with tenants and I made more money! The property manager charged late fees and chose better tenants, which helped the bottom line even though I had to pay the property manager,” a satisfied landlord said.
The proprietor has a role to play in as much as all the responsibilities have been shifted to the property manager. He/ She has to listen to the property management and follow the property managers’ advice or at least take it under advisement.
“Think of your property manager as a baby sitter” anonymous saying.

Tenant Management, By Gordon Leung

Build Resident Relations from Day 1

From Day 1 when the tenant moves in, the landlord should start to build a mutually respectful and cooperative relationship with them. A clear, positive, and honest communication routine is a foundation of a successful landlord-tenant relationship.

It is imperative to recognize that both landlord and tenant have rights and responsibilities towards each other. That communication begins with on boarding and tenant leases.

Here are few Practical Tips for Great Tenant Communications:

• Deal with tenant’s request promptly. Make the tenants feel that you care about their concerns. For instance, if the work order is unable to be addressed within a reasonable time period due to the delay of repair parts order, let your tenants know as soon as possible and the expected timeline of completion.
• Don’t promise if you are not able to deliver. For instance, no free flooring upgrade or replacement in the unit should be agreed if the damage was caused by tenant’s negligence.
• Don’t take complaints personally. Address complaints with an open mind as well as a fair and professional manner.
• Use diverse tools/channels to regularly communicate with your tenants. For instance, you may notify tenants of events or activities and to explain building policies and services. You may also create a group with discussion forum via social media so that tenants can directly communicate, and you may hear their honest feedback.If you choose to use signage as a communication tool, make sure signs are not hand-written. Signs should contain positive words such as “Please” or “Thank you” instead of “No” or “Don’t.” For instance, the sign that reads “Thank You for Not Smoking” can positively influence tenants comparing with the one that reads “No Smoking.”
• Utilize social events to build bonding with your tenants. You don’t need to spend tons of money to get tenants together. For instance, holding the National Night Out event at your community is a great tool to build positive police-neighborhood relationship while as a landlord, you can strengthen your partnership and build rapports with both police and tenants. -Engage your tenants to plan and host holiday events to build a stronger sense of belongings at the property.

There are occasions where disputes occur between tenants. As a landlord, you shouldn’t take side before having a chance to investigate. Focus on facts not personal feelings. Use an incident report to document all facts and attempt to resolve the tenants problems.

If tenants report incidents in writing, make sure you read the report thoroughly and clearly understand the problem. While you investigate the issue, ensure you respect and adhere to tenant privacy and confidentiality. Take actions as needed including serving lease violation or warning letter to the party who didn’t comply with the lease and/or house rules.

When enforcing lease and house rules, landlord should communicate clearly and non-emotionally to tenants. It is critical that roles and responsibilities for both landlord and tenants are clearly established and articulated. Next time, we will talk further about how a landlord can properly and professionally enforce tenant leases.