What you need to know as a landlord in South Africa
Category Rental Advice
Being a successful landlord hinges largely on two main factors - selecting the best possible tenants and keeping the rental property well maintained.
It is easy to feel inundated with maintenance if you don't have the time for upkeep on your own, or if you have multiple rental properties. This is why Chas Everitt property rental agents are selected in the first place - to assist you on both fronts!
"Pick your rental agency very carefully" advises Brendon Lahana, principal of the Chas Everitt St Francis Bay franchise.
"If you are not going to personally manage your rental units, you will need a reputable agency to manage the process for you. Take the time to select a reputable property rental agency with a proven track record.
Ensure that the estate agency (and their staff) is correctly registered with the PPRA, their Fidelity Fund certificates are current, and that their staff are correctly qualified."
Attorney and partner at Chas Everitt, Barry Davies, stresses that you must always make sure that everything related to the rental of the property is in writing to protect both your tenants' and your interests.
"Whatever is agreed upon (or not agreed upon) must be reduced to writing. This includes everything from the initial application to agreements/rules/conduct issues etc."
When something needs to be repaired, have your tenant send that to you in writing, too, even if they have advised you telephonically or in person. "It's a good habit to help you keep track of expenditure and it ensures you have an accurate history for each property and tenant," says Davies.
Dave Pride, who manages a large property rental portfolio in the Chas Everitt Randburg operation, stresses the importance of ensuring that all references are thoroughly checked.
"Problem tenants are sometimes incredibly adept at creating a good impression and can pull the wool over even the most experienced of landlords' eyes. It is imperative that genuine and verifiable references are obtained and that the necessary time and care is taken to check them out" he adds.
"I always want to ensure that we offer our tenants a clean and safe rental property. All landlords should keep their properties clean and well maintained. Not only does it make it easier to rent, but it also reduces any liability, fosters a better tenant relationship, and is simply a smart way to protect your investment. Security is a key issue in South Africa, and, depending on the location of your property, you may want to regularly review your security. This will not only ensure the safety of your tenants but could also have a positive influence on your insurance premiums," says Leanne Pillay, of Chas Everitt Ballito, who handles both rental leases. We focus a lot of energy and time making sure our rental client gets a well-maintained home when they let from our landlords."
"You also need to repair the rented property quickly when required," Pillay says. "Tenants have the right to decent living conditions - and if there are genuine repair issues, attend to them promptly. A good letting agency will generally have a list of service providers available who can assist. Certain repair issues such as plumbing, appliances, and electrical issues cannot be delayed."
Another common mistake Landlords make is in the lease agreement. "Use a valid lease agreement says Charl Louw of Chas Everitt Seapoint in the Western Cape. It sounds obvious, but we see inexperienced landlords using terrible lease agreements all the time. South African property laws are complex, and we are also one of the most legislated environments in the world. Laws are constantly changing regarding the likes of the Housing Acts, Consumer Protection issues, etc. It is critical that the lease agreement you use is well-drafted and covers all the necessary issues. If you are handling your rental properties, have your agreement checked by an attorney to cover all bases."
Ramona Grimbeek, manager at the Chas Everitt Nelspruit agency reminds us that you must adequately insure yourself as this is something those new to letting out properties tend to "Make sure that you have the correct level of insurance, property liability insurance, etc. If you have to claim or your rental agency needs information, ensure you have all the information on hand - a tenant with a burst geyser who has to spend days waiting for this to be settled can become your worst nightmare," she says.
"Always treat your tenant fairly," says Paul Greyling from Chas Everitt Centurion, "Look after your tenants, and in the main, they will look after you. Put yourself in their shoes and try to understand their position. Having a good relationship with your tenants makes your life easier and will pay dividends on the likes of longer let periods, reduced payment delinquency, and a better cared for property".
In closing, it's important to remember to respect your tenants' right to privacy. While it is not unreasonable to inspect a property, spare a thought for your tenant. Chas Everitt Property rental agencies provide the tenant with a schedule for inspections and will ensure that the matter is handled courteously and with fair notice.
Author: Chas Everitt