"New landlords would do well to talk to experienced letting agents who have a positive track record in their area" says Mike Spencer of Platinum Global.
Landlords are responsible for ensuring that properties are inspected when the new tenants move in, and that the tenant is entitled to receive a copy of the inspection report. It should be done together with the old and new tenant and the old tenants deposit must be repaid within 7 days. If there are problems landlords are given a little longer, but in the event of major damage getting proper quotations could be a problem. Tenants are entitled to a detailed statement of their deposit refund together with receipts for any deductions.
Landlords should choose their letting agents carefully. It is fashionable for sales agencies to dabble in letting without knowing much about what they are doing. Good estate agents would undertake an ITC credit reference before letting to any tenant and ensure that they can afford the property they are letting. This does not always happen and landlords only find out later how expensive and difficult it is to get rid of unwanted tenants legally. In higher risk properties and those with lower rentals landlords would be well advised to insist that their letting agents take double deposits and that they take immediate action against any defaulting tenants to minimize their losses.
Many letting agents are less than stringent about the date on which rentals must be paid. It would make a significant difference to the landlord if he were to be paid his rental before the interest date on his home loan (usually around the 7th of each month). Estate agencies that insist on tenants paying directly into their trust accounts and on-pay landlords in the same way are a big help in this regard. This helps to maximise the landlord's investment.
Landlords should be aware that they are responsible for their tenant's service accounts (electricity, water etc) both with the municipality and the body corporate. They should insist that their letting agents get proof of payment from their tenants on a regular basis and that no deposits are repaid before this proof has been received.
Far too many letting agents are prepared to let to just anybody, just to be able to show the landlord that their property is let. This results in poor tenants being accepted, disturbance in the complex, unhappy trustees and frequently damage to the unit and loss of rental. Legal costs can be substantial for the landlord. This is a pennywise, pound foolish way to let property. Landlords should insist that their letting agents take great care when renting out their properties and only choose approved tenants, to minimise their losses and letting problems.
Anyone who needs advice on renting out of residential or commercial property is more than welcome to contact Mike Spencer at mikehome@telkomsa.net.
