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