Real Estate Investor Magazine South Africa April 2014 | Page 32

STRATEGIES

BY WESLEY BARNARD

First time landlord?
A handful of helpful tips for you

R

egardless of whether you are an investor who found an excellent income generating rental
property or a homeowner renting out your property, a cottage on your property, or an extra
room in your home, meeting the requirements of being a landlord is more intricate than
simply signing a lease agreement and collecting the monthly rental fee. Owning and renting out

a property can be a rather complex process that can take a fair amount of the landlord’s time,
depending on the situation. For this reason it is highly important that those considering becoming a
landlord or who have already become one, consider a few aspects to help them along the way.

1

CLEAR TIMELINE
While there may be some investors who are able to find a rental property that can generate
a rental income that covers all the costs, generally this is not the norm. A rental property
may pay for itself in the long run, perhaps once the bond is paid off of the market booms,
but initially there will be a cost involved in owning a rental property. This cost could be the
remainder of the bond repayment or maintenance costs, but there will be a cost.

It is always important to remember that property should be viewed as a long-term
investment - regardless of whether the buyer has bought the property to live in or rent out.
Property is a solid appreciating asset that can be used as a cornerstone for wealth creation, but
it is not a get-rich-quick purchase. Turning a rental portfolio into a profitable business is more
like a marathon than a sprint.

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April 2014 SA Real Estate Investor

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