INVESTMENT SERIES
PART
4 First Time Investor Guide
THE TENANT QUESTION
BY MONIQUE DU TOIT
W
hen it comes to being a buy-to-let investor , finding the right property is only half the battle . Last month , we looked at choosing the perfect location for your investment . Now , we look at ways to ensure you find the ideal tenant .
Make your terms and conditions clear : When advertising your property , be sure to include the terms of the rental agreement . Details like pets , smoking , or number of tenants are all things that should be set out right from the start . When advertising , it ’ s also important to make your criteria clear and relevant - don ’ t be afraid to stipulate requirements such as minimum monthly income .
Application forms : Prospective tenants should fill in a detailed form , stipulating personal details as well as references . It ’ s also important to have a copy of a salary slip and ID documents .
The vetting : This should be a no-brainer , but always run a credit check and background check on prospective tenants .
The agreement : Once all checks have been completed , it ’ s time to set up a lease agreement . It ’ s important to make this as detailed as possible , to avoid any future confusion or disputes . A pre-occupation inspection should accompany the lease , detailing any existing problems with the rental unit . The lease agreement needs to include details regarding the deposit , rental amount , and maintenance and upkeep .
At the end of the day , there really is no guarantee that your tenant will be a good one . Knowing how the law regulates evictions is essential for any residential landlord . The PIE Act , or the Prevention of Illegal Eviction from and Unlawful Occupation of Property Act , sets out clear rules for a landlord to follow . There are several instances where the person staying on the property can be evicted , given the correct procedures . A person is an unlawful occupier if they :
• stay on a property without the consent of the landlord ;
• stay on a property without having any right in law to do so ; or
• are not considered to be an occupier in terms of any other law .
In other words , if the landlord withdraws consent previously given to the occupant to stay on the property , they become an unlawful occupier . For example , an existing lease agreement between the landlord and the tenant will usually provide the tenant with a right to occupy the property . When the lease agreement expires or is cancelled by the landlord , as a result of the tenant ’ s breach ( such as not paying rent , damaging the property and so on ), the tenant will be considered to be an unlawful occupier .
22 FEBRUARY 2018 SA Real Estate Investor Magazine