By Ephraim Kasozi
Posted Thursday, February 17 2011 at 00:00
Posted Thursday, February 17 2011 at 00:00
As more people build both commercial and domestic buildings for rent, the major challenge they face is how to manage collecting rental income from the tenants in these buildings.
Any property owners’ night mare is to have to follow up on their tenants on whether or not they are making payments. But it becomes more challenging to developers who own property in the countryside.
Mr Edirisa Sembatya, the managing director of Smarts Accounts Uganda, a local real estate managing company, says that although the goal of building residential estates and commercial plazas is to profit from the booming real estate market, “The pursuit of this goal does not end with rising up the structures, but there should also be a plan on how you are going to manage the tenants cost effectively.”
The common mistake that most property owners do is to assume that they are managing a building and forget that the building cannot generate monthly returns unless tenant’s are paying promptly. He says that failure to generate monthly revenue costs many property owners millions of revenue over time.
“If you do not make out a plan to manage your tenants, you will lose money to the common acts of failure to follow up on tenants where you might just not have the time to always follow up on your tenants,” he says.
Other consequences include losing track on payment patterns, continuous excuses requesting for more time to make payments, lack of proper records on payment leading as well as creation of false receipts or payments.
“Some tenants create false deposit slips or receipts claiming to have paid in your bank accounts, so why not get yourself a payments manager? Payments management is a concept applied in different businesses,” he says.
A payments manager is a cost-effective approach to managing ones’ revenue collections without having to incur a lot of costs or losing money through fraud.
Real estate payments management is a service that solves all your rent collection on both commercial and residential properties.
Real estate payments management is a service that solves all your rent collection on both commercial and residential properties.
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