Rental management companies:
• Have a pool of tenants looking for rental
properties, so you can find a new tenant faster.
• Take care of advertising the property and
managing all the enquiries regarding the
property.
• Professionally and thoroughly screen all
applicants, including running credit checks,
background checks and contacting references.
• Will spend the time showing your property to
prospective tenants.
• Will select the most appropriate tenant in order
to minimise the risk of frequent tenant turnover
and vacancies.
Placing the tenant
Placing a tenant is not as simple as dropping off the
keys. Rental management companies follow strict
procedures to ensure that both the tenant and the
property investor are protected against disputes and
hassles.
Rental management companies:
• Will handle all negotiations with the tenant on
your behalf.
• Will collect the deposit and retain it in a trust
account.
• Have water-tight contracts, updated with the
latest changes in legislation governing landlordtenant relationships.
• Will ensure the contracts are signed, and
keep copies thereof, in line with the legislated
requirements.
• Will conduct a pre-occupation inspection of the
property with the tenant, including photographs
to verify the pre-occupation state of the property.
• Will hand over the keys and assist the tenant
with settling in.
Managing the tenant and the rental property
Once the tenant has been placed, the real work starts
in managing both the tenant and the property. Many
investors have heard the horror stories of tenants who
do not pay, pay late, sub-let rooms in the unit, make
braai fires in the bedroom, and cause disputes with
the neighbours. A rental management company can
substantially reduce the risk of this happening on your
property.
www.reimag.co.za
Rental management companies:
• Keep up to date with the latest legislation and
changes in regulations.
• Collect the monthly rent.
• Immediately enforce the contractual procedures
regarding late payments, including sending
letters of demand and applying penalties for late
payments.
• Take care of any problems with the tenant and
handle tenant enquiries and requests.
• Conduct regular inspections to ensure that the
property is being looked after.
• Deal with unexpected emergency repairs.
• Obtain quotations for maintenance and repairs,
and do the necessary checks on the contractors.
• Arrange any plumbing, electrical, painting
or other repairs within the parameters of the
mandate.
• Project-manage repairs and maintenance,
providing regular feedback to all parties.
• Conclude payments and obtain warranties and
guarantees.
• Deal with any insurance claims.
• Renegotiate leases and rental increases with the
tenant on your behalf.
Terminating the lease
Terminating a lease with a tenant is often fraught
with difficulties, and much more so when the tenant
has to be evicted due to nonpayment or unacceptable
behaviour.
Rental management companies:
• Take care of any breach of contract, acting in
accordance with the prescribed regulations and
the contract.
• Conduct post-occupation inspections before the
tenant vacates the premises.
• Itemise damages.
• Provide quotes for the restoration of the
property to the standard defined by the preoccupation inspection, allowing for standard
wear and tear to be offset against the deposit.
• Handle the refunding of the deposit
• Employ qualified attorneys to handle evictions
in order to minimise delays and vacancies.
All in all, the management fee, which can be anything
between 4% and 14% of the rental, is well spent,
having professionals take care of the entire process.
Residential Handbook 2016/17
17