TIPS
Advice for
Aspiring Landlords
The In’s and outs of managing rental properties
BY WESLEY BARNARD
I
f handled in the correct manner, owning a rental
portfolio can be a highly rewarding experience.
However, not every property investor necessarily
wants to be a landlord.
While many investors may want to own a rental
portfolio, it doesn’t always mean that they have the
time or resources to effectively manage their rental
properties. As with most new enterprises, there is
a learning curve to becoming a successful landlord.
There is legislation that needs to be understood and
adhered to, and being a landlord is not always a 9 to
5 job. As a landlord, the property owner will have to
wear many hats and be able to effectively deal with
all of the aspects that letting out a property entails
One of the most important roles of a landlord will
be to vet potential tenants, as this will have a direct
impact on financial viability of the rental portfolio.
Along with the rewards there are risks, one of them
being potentially dealing with delinquent tenants
who do not 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
30
Residential Handbook 2015
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 anothe