Dealing with problem tenants

rental return after or when considering investing in a particular property.
The economic challenges currently facing our country have made investment in property for the sole reason of rental income unattractive to some members of our society.
Surprisingly, it is not because of an unattractive rental return but the emergence of unscrupulous tenants that has wrecked havoc on properties and the property owners.
There are many sad stories of cantankerous tenants taking advantage of landlords for various reasons, which has made some potential property owners prefer not to let out their properties.
When it comes to tenant selection, a stringent and unwavering vetting process should be adopted that ensures that all the necessary requirements of a property owner are thoroughly scrutinised and there is complete satisfaction on all matters.
Such could range from financial to character while incorporating previous history of tenancy in other properties.
At this point, one is advised to place the property under the control of an estate agent.
The managing agent must display a record of accomplishment of good management of similar properties.
It is wise to have a questionnaire on aspects that your selected real estate or management company must qualify before allowing them to manage your property.
If one does not like to engage the services of a real estate and prefers to personally manage their own property, then it is best to invest in a property either in ones close proximity or a flat with an active management committee.
Why an area in close proximity to the landlord?
This is because it gives atmosphere of presence by the property owner. Here I am neither promoting nor condoning those property owners who have the tendency of knocking on their tenant’s door all the time, as if they reside on the property themselves.
Such type of property owner in my view is just as cantankerous as the tenant I have referred to above.
The fact that your tenant is aware that one resides close by or uses the same street daily to or from work is sufficient to motivate the tenant to maintain one’s property in a good state.
The idea of being physically present, as a deterrent to bad management is superfluous and only encourages obstinacy on the part of the tenant.
Why a flat or cluster?
Normally such properties are locking, go options, and require minimum maintenance by the tenants themselves.
The property owner for this reason will not necessarily have to maintain an atmosphere of presence.
It is imperative that before investing one ascertains the effectiveness of the management committee if any that take care of the facilities or levies at the property.
A request for a meeting with representatives of the committee should be a prerequisite before investing.
Here, one can get a full picture of the future state of repair of the property from the structures that this committee would have put in place.
Where a flat has a management committee that consists of property owners, the main worry for the investor will most certainly be rent and the resident committee will tackle levies and all other issues like security and state of repair.
If the investor wishes to invest outside the scope of these limitations, then they are advised to seek professional assistance in both pursuit of investment property and management.
Some have a rising rental return while maintaining a somewhat stable selling price or vice verse.
Some areas have a high tenancy ratio and are prone to suffering periods of vacancy.
This is not good if the sole purpose of the investor is to recoup rental value from such properties.