In today's more difficult rental market don't succumb to the temptation to forgo a deposit
Category Weekly Advice
In today’s more difficult rental market don’t succumb to the the temptation to forgo a deposit in order to find a tenant, says Alexander Swart property director
There are now clear indications that the demand for rented homes in Cape Town, especially sectional title apartments in multi-unit complexes, is not as strong as it was at the start of the year and landlords may have to settle for slightly lower rentals in the coming months.
“In a situation of this kind,” says Rowan Alexander, Director of Alexander Swart Property, “landlords and rental agents may be tempted to accept an apparently reliable tenant without his paying the two months deposit that is specified in almost every single rental contract. My advice on this matter is simple: rather leave the home unoccupied and without a tenant than take on one without a deposit or with a greatly reduced deposit.”
If such tenants then default on their rents and have to be evicted, says Alexander, the process can take time – and there will be no compensatory deposit to draw on. Furthermore, if they have damaged the property there will be no funds with which to put matters right. Tenants undergoing an eviction almost never pay the last few months rent.
Alexander adds that in today’s conditions rental agents may also be tempted to overlook the usual credit requirements or credit lapses as applied by South Africa’s credit bureaux and to ignore dicey employment records and unfavourable testimonials from previous landlords.
“It is understandable that the agent should want to secure a tenant as soon as possible, but in our experience it is better to forgo rent and have an empty property for a few months than to take on a tenant who could cause endless headaches and may be difficult to evict,” says Alexander.
For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.
Author: Independent Author
