Eight reasons why Uganda’s real estate investors need property managers

Owning rental properties can be a stressful experience, especially if you take on the role of management yourself. In Uganda, many landlords would rather go through the hassles associated with managing real estate properties than trust a property management company to handle their investments. This is partly due to a belief that they stand to save on the cost of hiring a property manager thereby enhancing expected returns from the investment.

However, this doesn’t have to be the case. There are several reasons why having separate management for your property might be worthwhile. This article seeks to explain why Uganda’s real estate investors need property managers.

1.      To save time and energy

Managing a real estate property can be a full-time job. To ensure tenant satisfaction and maintain the property in pristine condition, a dedicated eye and ear are required to respond to urgent issues arising. The time and energy required to perform this role is usually more than most landlords are willing to devote to the property. This is so because they often have other responsibilities elsewhere, and it is assumed that property management is something they can do over the weekend.

Whereas this is usually the plan, they soon realize that they must respond to issues more frequently, which leads to frustration. In most cases, landlords have better productive use of their time than running after tenants. Hiring a property management company whose focus is to look after the property on a daily saves landlords from this burden, so they can focus on more important areas in their lives.

2.      Maximize occupancy rates.

It is the role of a property manager to look for tenants in case of a vacancy at the building. Property managers have a good understanding of the property market and therefore know where to advertise to reach potential tenants. They can do this well in advance, before the property becomes vacant, thereby reducing the time spent with an empty unit.

The services of a good property manager also contribute to tenant satisfaction, which in turn increases retention. The longer tenants stay at the property, the less risk of vacancy there will be. All this improves on the returns a landlord gets from their investment.

3.      Maintain the property in good condition.

 If you move around the capital city of Uganda, you will notice some buildings that have been around for a while, and it shows in their appearance. You will also notice that some other buildings still look as new as when they were opened for the first time. This boils down to property management.  

Buildings under the care of a good property manager will be maintained with utmost attention.

Regular checks on the plumbing systems, roof leakages, and other elements ensure that damages are addressed well in time to prevent them from escalating into bigger defects. Property managers possess wide experience in building maintenance and can come up with the most effective approaches to maintaining a building. The landlord benefits from this expertise, which he wouldn’t easily have access to.

4.      Enabling investment in distant locations.

Imagine you were a landlord and you wanted to invest in properties across several locations. It would be impossible for you to manage them yourself. The logistics of moving from one end of the city to another simply can not allow effective management, thereby limiting you to the locations that are within your reach.

But what if you got to know of attractive opportunities across town? Would you give up on them or you would go out there and find a suitable property manager to run affairs on your behalf? As your investment portfolio grows bigger, these are the issues that come up.

A wise landlord quickly determines that he will need the help of property managers and designs ways of hiring them as he expands his business.

5.      Prompt rent collection

One of the biggest challenges landlords in Uganda face is delayed rent payments. This becomes common with tenants who have stayed on the property for a long time. There is a tendency of familiarity developing with the landlord to the extent that the tenant expects the landlord to understand when they fail to pay rent even for four months.

To avoid such scenarios, hire a property manager, whose mandate is to report rent collections every month. This will maintain a professional relationship between the tenants and the manager, ensuring that rent is collected promptly every month. In this way, the property's cash flows will be maintained at optimum levels.

6.      Easily fulfil legal requirements

The law has certain restrictions on how landlords and tenants interact. These are stipulated in the Landlord Tenant Act. In most cases, landlords are not familiar with these laws, and they could end up making mistakes that cause tenants to sue them.

Having a professional property manager saves you from such unfortunate scenarios since they have good knowledge of the law. Property managers have experienced such run-ins with tenants, and they have devised best practices for how to respond to similar scenarios. They can even go ahead and start legal proceedings on the landlord's behalf in case a tenant needs to be evicted.

7.      Easy management of vendor relationships

When you own real estate rental property, you are going to need the services of various vendors. Ranging from contractors, security companies, and cleaning services providers to utility companies. Dealing with all these different entities can be overwhelming for a landlord.

You may want to have someone take on this responsibility on your behalf. Property managers already have an established network of service providers whom they can call upon whenever there is a need.

They also have contacts of people in the utility companies that can expedite processes to ensure that priority is accorded to your property whenever there is a request. As a landlord, if you hire a property manager, you save yourself the burden of dealing with all this.

8.      Make the most of short-term stays

Several people have invested in short-term stay apartments. These require more attention. Because tenants come in and out frequently, it is important to check the condition before and after someone uses the property to make sure they are not leaving behind major damages that could eat up the profit registered from their stay. A property manager’s services will make a difference for a landlord involved in this kind of business.  

Overall, whereas the role of managing a property seems doable for most people, performing it requires dedication, Knowledge, and experience. If you plan on growing your real estate business, it’s imperative that you hire property managers to look after the properties on your behalf. That is how you can maximize the potential earnings from your properties.

To learn more about investing in Uganda’s Real Estate industry, visit https://www.barosgroupltd.com/

About the author;

Benard Sonko is a real estate investment manager and founder of Baros Group Limited. For comments and inquiries, you can reach him at +256742140251 or info@barosgroupltd.com