Savvy ways for landlords to protect themselves
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Buying property to let it out can be a great investment - if you go about it in a way that protects your interests. Jawitz Properties discusses the rentals market and various ways that landlords can protect themselves against potentially unscrupulous tenants. By using the services of a real estate agent, having a well-composed rental agreement and avoiding some common mistakes, you can ensure that finding and keeping a tenant is stress-free.
Reasons to use a real estate agent rather than finding a tenant yourself
According to Ynnis Willson, head of Jawitz Properties' rental division, real estate agents are better placed than landlords to vet a tenant because they are "removed" from the situation. "They don't get persuaded by sad stories," she explained. "Agents also have the advantage of market knowledge and can provide a landlord with the right advice about pricing and marketing the unit. Thanks to vast experience, we are also able to pick up telltale signs of a potentially troublesome tenant."
Another factor to remember is that opting for rental property management will help to alleviate the nightmare of dealing directly with a difficult tenant, should that situation arise. "You will also have access to legal advice as to how best to handle the situation," added Willson.
Real estate agencies have established systems and protocols in place for vetting tenants. Willson explained that Jawitz Properties looks at various factors including affordability, the likelihood of squatting, previous landlord checks and references. "We also look at would-be tenants' credit profiles and check their bank statements and pay slips," shared Willson. "Over and above this, we verify their current employment status and references - making sure to the best of our ability that the person giving the reference is indeed the landlord of the previously rented property."
Clauses that every rental agreement should contain
A lease agreement should be designed to ensure that you, as the landlord, are provided with as much protection as possible.' "The Rental Housing Act most definitely provides more protection for tenants than it does for landlords," commented Willson. "The lease agreement is therefore essential from the landlord's perspective."
Willson added that it is vital that the lease agreement includes a clause that covers what happens in the case of early lease termination. "This clause needs to detail the penalties that can be imposed. It is also essential to include early termination by the landlord. Landlords have very limited rights to terminate early, and these have to be contained in the lease agreement in order to be enforceable."
Trust the process to the experts
Once you decide to entrust your property rental to a property practitioner, the rest will be taken care of for you. "We take care of the entire process," explained Willson, "from listing the property, giving advice on rentals within the current market and conducting views to receiving and vetting applications."
The drafting of the lease agreement, entry inspection by independent inspectors and handover of the keys will also be managed by the property practitioner. He or she will act as a "middle man" throughout the tenancy, ensuring that everything runs smoothly both for you and for your tenant.
Jawitz Properties rental division operates in every corner of South Africa, ensuring that the best interests of landlords are upheld in every rental agreement. Contact us today for more information about how we can help you find the right tenant.
Author: Jawitz Properties
