It is that time of the year again when new leases are signed, and whether you are a property manager, homeowner or landlord, there are some common tips to help manage your property during 2010.

Michelle Dickens, managing director of TPN, a registered credit bureau, shares her top tips when it comes to property management.

1. Plan your year. By knowing your budget and setting up short-, medium- and long-term goals for the year. By breaking your action plan down into achievable monthly targets you will be able to ensure that your business reaches its full potential.

2. Look after your property. Quality properties attract quality tenants. All properties deteriorate over time. A smart investor understands the advantages of spending to maintain the property and remember the money spent is set off against the tax expense.

3. Secure a quality tenant. A quality tenant will respect the property, pay the rent timeously and behave appropriately. Watch out for smooth talkers with expensive clothes and fancy cars. The easiest way to ensure you have a gem is to do a background credit check.

4. Look after your quality tenant. Negotiate reduced rentals, or minimal escalations. There is always a risk in whatever investment you may have, best to try and secure it by maintaining your fixed income.

5. Keep yourself in the loop. It does not matter whether you have outsourced the property management to a letting agent, or if you are managing the property yourself, this is your investment. Keep a monthly account of each property and carefully note payments received and expenses made.

6. Communication. Develop your relationship with your tenant by communicating regularly and fairly. This could be as simple as sending a monthly statement, or listening when the tenant has a maintenance issue and speedily resolving it.

7. Act quickly. The longer a problem persists the more difficult it becomes to resolve. If the tenant is in arrears call immediately, remember that the supplier who pesters earliest and loudest usually gets paid first.

Also resolve maintenance issue quickly this reduces the possibility of your tenant using maintenance problems as a bargaining tool for non-payment.

8. Be stern, but fair. Life deals complications. Your tenant’s hurdle could result in non-payment of rent. If this non-payment is a once-off, be reasonable, but take action. Insist the tenant signs an acknowledgement of debt and establish a re-payment plan. If the non-payment of rent is an ongoing issue, cancel the lease early before arrears mushroom.

9. Have quality service providers. Have access to plumbers, electricians, property managers and credit bureaus that know their niche and can provide you with fast, reliable, honest work the first time round.

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