Renting out your property? Use a reputable real estate company.
Category News
Buying property with the intention of renting it out is a fantastic investment opportunity in South Africa. Once you've purchased your investment property and it's time to find the right tenant, there's a lot at stake. That's why Jawitz Properties Head of Rentals, Ynnis Willson, emphasises the importance of enlisting the help of a reputable estate agency to find the ideal tenant.
Finding the right tenant
According to Ynnis, the journey to finding a tenant with the help of Jawitz Properties begins with being given sound advice about current market conditions and the rental amount that you should be charging. "There is often a misconception that if you charge a higher rental, you will attract tenants of a higher calibre - but this is not the case," explains Ynnis. "By doing this, you can end up with a tenant with an adverse credit record who is willing to pay the higher price because it means less chance of being rejected by the landlord. A good tenant is looking for value for money and is willing to pay a fair price."
If you entrust the process of finding a tenant to Jawitz Properties, the team of experienced rental consultants will handle all aspects of procuring a new tenant, using their existing database as well as property portals. They will do a full vetting and credit check on the prospective tenant, including obtaining references from previous landlords, which will go a long way towards avoiding unpleasant surprises later.
Comprehensive safety nets
If you rent out your property with the assistance of Jawitz Properties, you reap the benefits of substantial safety nets. "For starters, we require the tenant to complete a detailed application form," explains Ynnis. "We then do a comprehensive credit check which allows us to see the prospective tenant's payment profile and ascertain whether or not they can afford to rent your property. We will also be able to establish whether or not they are likely to pay on time and what the risk is of them becoming squatters. At the end of this process, we give you, as the landlord, a score card and recommendation."
"Ultimately," Ynnis adds, "the final decision as to whether or not to accept a would-be tenant lies with you as the landlord."
The pitfalls of not using a reputable real estate agency to find your tenant
Landlords who choose to find their tenants themselves rather than using an agency often make similar mistakes. "A common mistake for landlords to make is being swayed by the emotional plea of a potential tenant," comments Ynnis. "Also, landlords often do not carry out the full vetting and credit check process, which is vitally important."
Ynnis also points out that since a landlord is unlikely to know the real estate market as well as a real estate agent, there is a possibility of them listing the property at a rate higher than the market value. "This is likely to mean that the property stands vacant for far longer than necessary," Ynnis explains.
The ins and outs of legislation
Both the Rental Housing Act and the Consumer Protection Act contain legislation that is applicable to landlords and tenants. "Having a properly drafted lease agreement which is up to date in terms of legislation is vital," explains Ynnis. "It is important to remember that legislation favours the tenant rather than the landlord. Using a reputable rental agency like Jawitz Properties minimises the risk of having to undergo the expensive and cumbersome task of evicting a tenant."
In addition to finding you the right tenant, Jawitz Properties offers a management option. Landlords, sign up for this option and allow Jawitz Properties to take care of the financial aspects and maintenance of the property on your behalf. To find out more about having Jawitz Properties find you a tenant or manage your rental on your behalf, contact us today.
Author: Jawitz Properties
