For that matter, any business, when not monitored properly, will surely fail.
THE FAST AND EASY, THOUGH LESS PROFITABLE ANSWER
The system I outline below would help you have complete control over the details of managing your property investment. You will still have to do your homework to flesh out the components of the system, but the framework I suggest will make it easier for you to do just that. From having the place rented to potentially evicting a tenant, you’ll have the required framework to make property management profitable for you.
A. Spreadsheet Software – Microsoft Excel or any spreadsheet software
B. Word Processing Software – Microsoft Word or any word processing software
C. Dedicated e-mail address – make a new e-mail address to handle property management
D. Chat Client – for cheaper calls from the Philippines, it might be better to use Skype or your smartphone chat app (WeChat/Viber.
E. Calendar, whether software or physical – to keep track of collection and due date
F. (Optional) Cloud Storage – if you’re not familiar of the term yet, cloud storage simply means you’re saving your files in the web. Think of it as an extended hard drive that you could access anywhere. By saving your files in the cloud, even if you somehow lose your computer, you will still be able to access all files related to property management via a web browser.
I know this sounds complicated, but if you take the time to do it, you’re bound to have a better understanding and grasp about how property management works. That translates to better efficiencies and more profit for you.
Before we do that, I just want to remind you that this system will only be as good as the people who will be using it. You, and the people who would work with you need to have the discipline to follow the system in order to make this work.
So here are some steps to do just that:
- Furniture and fixtures
- Bathrooms/Laundry Rooms
- Air-conditioning unit
- General cleanliness
- Payments of tenant
- Payments due to building administrator/condominium corporation
- Other payments
There may be a lot more, depending on the condo unit and the condo corporation. Having a checklist on hand makes it easier to remember the important things that need to be monitored so you don’t miss a thing.
2. Create a tracking sheet to track payments and due dates – using your favorite spreadsheet software, you could set up two sheets to track down the payments of your renter, then a separate one for the billings due for your condo unit. Through this, you will be able to track your properties and see who are becoming less profitable.
A simple table with columns for renter, amount due, amount collected, and due date will suffice for your first worksheet. The second worksheet would contain the records of the billings that are coming due (i.e. water, electricity, association dues, etc.). Columns for billing item name, amount due, amount paid, due date, and pay date would suffice for the spreadsheet.
You will have to make regular entries to the spreadsheet to make sure that this updated.
I recommend using BPI as your bank here, as they provide user-friendly access to your account, even with a smartphone.
4. Find a lawyer you could trust - this is for cases when things take a turn for the worse. Ask recommendations from your friends. You could also browse legal forums to see who the frequently recommended lawyers are for tenant eviction and experts in rental properties. It would be great if you would have someone in the locality your property. They would usually have the added advantage of knowing the authorities in your area. That could prove useful in the event of eviction.
5. Download legal forms online and have a lawyer clean it up for you – most lease contracts are pretty standard which is why there a downloadable lease contracts over the net. Legal demand letters are also available for download. Just to be sure, get some legal assistance from the lawyer you could trust.
6. Find a local partner you could trust – there are just some things that need to get done locally and would need your signature. Because you are not in the Philippines, you would need to find someone here that you could trust who could act on your behalf. You should be issuing that person a Special Power of Attorney, which you could limit to specific authorizations. For the purpose of this system, you may want to give them the authority to inspect the property, contract repairmen, accept post-dated checks, and file eviction cases for you.
Now that you've got all the components of the system you need, it's time to get it to work for you. Here's what you need to do every month with your new system:
1. The renter should be signing only the lease contracts that your lawyer approved. Store this in a secure location and upload it to your cloud storage for ease of access.
2. Accept only PDCs (post-dated checks) for payment, dated from contract date to the end of the leasing period. This should be under the care of your trusted local. Every month, he would be depositing the payment for the month to your account.
3. Check your bank account online if the rent payments are being deposited, and if payments are remitted properly.
4. Ask your local partner to inspect your property regularly using the checklist you wrote down earlier. Have him e-mail or chat you up if he finds anything wrong or damages to the property.
5. If your renters miss payment, or violate the terms of your contract, ask your local partner to send billing notices immediately. Wait a week, and if there's no response, ask the local partner to send the legal demand letters and advise your lawyer about the move you have made.
6. For any contract renewal or new renter, you could follow the same steps above.
Wait...does this make sense for me if I only own a single condo unit?
Not really, unless you plan to grow your portfolio of condo units. If so, learning how this system works with one unit can make you ready as you face the challenges of owning more and making more money.
Working abroad and managing your condo unit or property investment is a challenge. But if you employ well-designed and executed systems, it won’t need to be.
Get up to double your profit managing your property yourself even when you're abroad. Just use the system I outline above, or something similar, and you're well on your way to building up your investments. It would take some hard work at the start, but it would be worth it. Don't have time to design the system yourself? Click here to find out how we could help you.
GET A FREE CONSULTATION CALL OR TEXT 0917 677 8878
To Request for Pricing, Copy of Brochure and Sample Quotation