pay their rental on time or at all. Having a
vetting process in place and selecting the right
tenant will largely mitigate the risk of paying
for legal proceedings if the tenant fails to pay
for several months. Litigation and eviction
can be a very costly process so it is vital that
the landlord selects the right tenant from the
outset.
Adrian Goslett, Regional Director and CEO
of RE/MAX of Southern Africa, says that due
to South African legislation, selecting the
right tenant can be a rather complex process.
However, there are various ways that landlords
can ensure that they are protected from the
risk of delinquent tenants. “Before a landlord
advertises the property, they should determine
the conditions of the rental agreement. The
more specific the landlord is – the better.
These conditions could include aspects such as
no pets or that a tenant that is non-smoker,”
says Goslett. He notes that another essential
aspect is to stipulate in the advertisement
that all potential tenants will be thoroughly
screened. This will have a significant impact
on the number of potential tenants that apply,
narrowing the selection down to those who
meet the criteria.”
Annie van den Berg, Broker/Owner of
RE/MAX Wildlife Properties says that the
selection process can be further streamlined
by asking potential tenants to complete a
detailed application form. “In the form the
landlord should ask for permission to run a
credit check, verify income and previous rental
history. It is very important to obtain a list of
contactable references, as well as supporting
documentation such as a copy of their ID and
a salary slip,” she says.
Drawing up and signing a comprehensive
lease agreement is the next step to take once all
the checks have been completed and a tenant
has been selected. Ideally the agreement should
be as detailed as possible, dealing with all
aspects of the rental. The terms must be agreed
upon and signed by both parties. This will
avoid any confusion or uncertainty regarding
each party’s obligations in honouring the
agreement.
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Ultimately even though a lease agreement
allows the tenant to take occupation of the
property, it is still the owner’s responsibility
to maintain the property. Being a landlord
means accepting the fact that there will be
maintenance costs from time to time. Landlords
are not obligated to perform cosmetic repairs,
however they will be obligated to undertake
repairs if the safety of the occupants has been
compromised.
Hiring a rental agent
will take a large portion
of the work away from
the property owner and
landlords who use the
services of a qualified
rental agent will not
have to deal directly
with the tenant
Hiring a rental agent will take a large
portion of the work away from the property
owner and landlords who use the services of
a qualified rental agent will not have to deal
directly with the tenant. An agent will conduct
the prospective tenant meetings, carry out
the vetting of the tenant, handle the check in
and handover of the rental property, prepare
a property inventory and schedule of the
property’s condition. The owner can enjoy the
benefits of owning a rental portfolio without
the work
If handled in the right way from the beginning,
with ongoing professional management, many
unnecessary and unpleasant situations can be
avoided. Taking the right measures from day
one will make all the difference to those who
wish to own a successful rental portfolio
RESOURCES
ooba, RE/MAX
Residential E-Book 2016 27