Real Estate Investor Magazine South Africa September/ October 2019 | Page 29

M
D of national property letting and management
company Trafalgar, Andrew Schaefer says that a
large number of rentals occur in the informal sector
where there is rarely any kind of lease document or protec-
tion for tenants.
“Even in the formal sector, prospective tenants are often not
careful enough when entering into a lease, in comparison to
the sort of caution people tend to exercise when they sign a
property sales agreement. For example, tenants need to make
sure they are aware of anything they will be charged for in
addition to the rent, such as water, electricity, refuse removal
or security. If these amounts are not included in the rental
they can make a big difference to monthly payments - and the
affordability of the property,” said Schaefer.
Those renting in ST schemes should also take care to read
and understand the rules of a particular scheme before they
sign the lease, as some of these might not suit their lifestyle,
or might prohibit them from keeping a pet, for example.
Landlords in ST schemes are obliged to make tenants aware
of these rules and a copy should also always be attached to the
lease.
“You should also enquire about any costs payable to the
body corporate for security discs and remotes and about
whether the unit has a DSTV connection and /or a high speed
internet connection. An increasing number of buildings have
‘fibre to the home’ connections in every apartment.”
VIEWING CHECKLIST
The general rule on affordability, Schaefer notes, is that
your total monthly rental should not exceed 25 to 30% of
your net household income. “Even that is high for many South
Africans, who are often also spending a large proportion of
their disposable income on debt repayment and transport to
and from work. To allow some leeway for emergencies as well
as future rent and cost-of-living increases, we would prefer to
see tenants spending less than 25% of their take-home pay on
rent.” Take note of the type of tenants already living in
the building. For example, if you are a student who
requires quiet time to study you should perhaps
not choose a building where the majority of
tenants have young children.
Schaefer says that once it is implemented, the new Rental
Housing Amendment Act will make it compulsory to have a
written lease, but that until then, tenants should insist that they
are given a copy of their lease and make sure they are familiar
with all the terms and conditions. They should also make sure
that it states the length of the rental period and what notice
period is required. Double-check the parking allocation and bay
numbers to ensure that your vehicle will fit your
assigned spot – and that you won’t get off to a bad
start with your new neighbours by parking in their
bay.
“Before signing or moving in, they must inspect the property
thoroughly with the agent or landlord. Any defects in the unit
should be documented and photographed and attached
to the lease so there can be no dispute later on about when
damage was done and by whom,” explains Schaefer
Schaefer says that the lease should state that it is the
landlord’s responsibility to ensure that the property remains
habitable during the lease period – so if the roof is damaged by
a storm and leaking, for example, it is the landlord who must
ensure that it gets fixed and your belongings don’t get ruined.
It is worth noting, however, that it is your responsibility as a
tenant to insure your own belongings against damage or theft.
“Tenants must also understand exactly what they will
be responsible for as far as day-to-day maintenance of the
property is concerned. It is not unreasonable, for example, to
be expected to water the garden, mow the lawn and keep the
pool clean if you are renting a house but the situation may be
entirely different if you are renting a Sectional Title (ST) flat or
townhouse,” says Schaefer.
Shaefer says it is also vital for tenants to know what
additional costs they will incur if rental is not paid timeously,
and to ensure that their damage deposit is placed in an
interest-bearing trust account.
Check whether pets are allowed, if there is secure
parking, what entertainment facilities there are
and if there is a drying yard for your laundry.
Ensure that the security meets your needs, for
instance, whether it’s 24-hour control or remote
access.
If there is a pool and you have children, make sure
that the pool area is properly fenced off and that
the gate lock is working.
Prior to the viewing, potential tenants are advised to analyse
the surrounding area for safety and to ensure that it suits
their needs in terms of amenities, such as the proximity of the
building to schools, shops, sports and medical facilities.
“Tenants as well as landlords should always deal only with a
reputable letting agency,“ says Schaefer
SOURCE Trafalgar
ANDREW SCHAEFER , is the Managing
Director for Trafalgar Property and Finance
Services for over 15 years. His specialities include
property and facility management, strategy
formulation and implementation along with
property investment and development.
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
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