Real Estate Investor Magazine South Africa August 2015 | Page 35

at all. To avoid such tenants, a property investor simply
puts a few simple and affordable risk management
techniques in place.

“Tenants are not adversaries,
but rather the clients of a buyto-let investor.”
Appointing a rental management agent to take care
of all these aspects is almost always the best choice.
Professional, reputable rental management agents have
the expertise, experience and resources to deliver a
professional service to both yourself and your tenant,
at a very reasonable fee – usually 8-10% of the rental,
which must ideally be covered by the rental charged.
However, some property investors may prefer to
manage their own tenants. This is possible, provided
that you are willing to put in the time and effort to do
so professionally. A complete and professional rental
management process, such as the one detailed in the
P3 Rental Management Kit, will neutralise tenant
risks to a large extent.

MANAGING THE RISK
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Always do thorough background checks.
Obtain referrals from previous landlords.
Sign a water tight lease.
Collect a deposit to cover potential damages.
Collect a separate deposit for payments for utilities or
installing pre-paid electricity and water meters.
• Do proper inspections, including taking photos, with the
tenant before, during and after occupation.
• Obtain the right property insurance for buy-to-let property
that provides cover for damages caused by a tenant
and even compensates for the loss of rental following a
catastrophe such as a fire or flood.
• Take out rental insurance, such as the cover provided by
P3, designed specifically to cover late or non-payment of
rentals, or evictions.

RESOURCES
P3 Investment Group
www.reimag.co.za