FIVE BASIC TIPS TO LANDLORDS OF RESIDENTIAL PROPERTY ON WHAT NOT TO DO
Category News
There are good reasons why at least 75% of landlords, particularly those with residential properties, entrust their rented properties to professional agents. This is time consuming work calling for special clerical skills and, if the tenant becomes recalcitrant, it is almost invariably better to have a third party working on the landlord's behalf rather than to be embroiled in legal matters which he possibly does not fully comprehend.
Nevertheless, says Rowan Alexander, landlords, including those employing agents, should be sufficiently in touch with their properties to ensure that certain regularly made mistakes do NOT occur. The most common of these are:
Not allowing sufficient time for marketing the property.
Quoting Foxtons, the+ UK estate agents, Alexander says that it is simply not true that most tenants leave their search for new homes to the last minute. This, he says, only happens in a small minority of cases: many begin their search online months ahead of their current leases expiring. If your tenant plans to leave, it is essential to put your home in the public domain at least two months ahead of the current expiry date. It is often forgotten that just one or two months' unpaid rental, as a result of premises being vacant, can amount to far more than the usual annual rent escalations. It is better, therefore, to secure a new tenant at the current rental rather than to have the home standing vacant for one or two months. It is also essential that the agent has keys for the property and the right to visit it frequently to show potential tenants around - although obviously every visit must be scheduled in agreement with the current occupants.
+Neglecting to have top-of-the-range pictures of the home for all advertising.
First impressions are very important, Foxtons remind landlords, and this is especially the case when using the social and online media to publicise a home. If possible, therefore, employ a professional photographer and take the time to declutter the interiors after spending a little money on improving the appearance of all spaces that need an upgrade.
+Failing to respond to tenants.
Satisfied tenants tend to stay on for long periods and accept annual rent rises. Every query or complaint from tenants should be attended to in a polite, understanding way and remedial tasks should be undertaken promptly. Tenants paying high rents have a right to expect this and in current economic conditions many tenants feel that their rents ARE high, even though their escalation increases may have been the lowest in years. Giving personal attention to the tenant is the hallmark of a good landlord-tenant relationship, he says, and if this means driving out at night to let a tenant who has lost his keys into the home, that and similar caring actions should be seen as part of the job.
+Omitting to comply with municipal and other legislation.
A range of laws apply to every rate paying property in Cape Town. These relate to electrical, structural, plumbing, gas, fire hazard and safety concerns of which many home owners are unaware but non-compliance can have serious implications from an insurance viewpoint. A good landlord will provide a home that complies with all relevant laws.
+Thinking that an agent is an unnecessary expense and the landlord should go it alone.
As has already been indicated, the role of the agent is by no means easy and they tend to work for low commissions, usually 10 to 12%. Time and again, says Alexander, landlords who have gone the DIY route have regretted doing so because they have found themselves landed with a tenant who defaults on his payment at some stage and in the worst cases is somehow proud of doing this. He may even have persuaded the landlord to accept less than the customary two months' upfront deposit - the only safeguard the landlord has in cases where the tenant defaults on rent or damages the home. When a tenant begins to default regularly, it can take months to finally evict him and to make matters worse; he probably leaves the home in a very poor condition. The wear and tear on the landlord's stress levels has been known to become very serious in these situations. All in all, says Alexander, it is always best to use a rental agent but make sure you find a reputable one with a good track record.
Alexander reports that Alexander Swart's evening workshops have shown many people are keen to become residential property owners but fear that they do not have the experience to do this efficiently. If they liaise closely with a good agent and keep the above warnings in mind, there is no need for them to be anxious.
For further information please contact Rowan Alexander on email: rowan@asproperty.co.za or by cell phone on 082 581 3116
Author: Independent Author
