Renting: the dos and don'ts for property owners
Category Blog
Whatever the reasons you find yourself renting your property - from a home that perhaps won't sell, to investment property purchase, to building a business on short rentals like holiday accommodation or Air B&B prospects - you need to take cognisance of a few canny steps that will help you avoid engaging negatively with the law or troublesome tenants.
What to do
Screen your tenant thoroughly
Learn everything you can about your prospective tenant: their rental history, whether they've been evicted and why, whether they pay their bills and are not in debt, and if they have a stable job history. You should have a screening process because it's important to ask all the right questions, and to discuss the rules of living in your property.
Know the Law involving renting
There are laws protecting tenants from being rejected simply because they have children, or because of cultural or racial preferences. A discrimination lawsuit could cost you a lot of money, even if you win. Avoid legal issues whenever possible by knowing the laws that apply and what you are rightfully entitled to expect from your tenant, including the correct procedures governing eviction. Following correct legal processes can help to ensure you are reimbursed for any monies owing.
Set the right market-related rental fee
Research the market to make sure you are charging the right rental price. The right rental can positively influence agreements and attract good tenants. A rental should be about what is possible in your location and in keeping with the condition of your property; rentals cannot be solely about the money you are hoping to make. Your finances should be well evaluated beforehand: bond repayments, taxes, insurance, repairs and general maintenance.
Ensure you have a written rental agreement
This is to ensure there can be no confusion about the tenant's responsibilities with regard to paying on time, any damages to the property, and the length of the lease. A rental agreement should clearly define your responsibilities and also what is expected from the tenant such as no pets, no unauthorised occupants moving in, noise factors, illegal renovations, late rental payment fees, deposits required, etc. Having a written rental agreement is the best way to communicate your expectations and protect yourself in legal situations. A clearly written rental application is a way to forge an assured but amicable landlord-tenant relationship.
It's a business - be professional
Take your business seriously. Don't rent and forget. If you act with care and purpose with regard to your property, the expectation is that the tenant will do so as well; you want your tenants to treat your property as they would their own. Set up an office and a dedicated phone line if necessary, especially if you have more than one property. This is when it is important to follow all necessary laws in order to maintain a positive reputation and avoid any legal problems. It's also important to protect yourself from potential accidents or liability claims, so you will need to ensure you have the applicable business insurance. Conducting good business means preventing problems before they happen.
Like any business, market it with clear strategy
Like any business you need to market it to the right target market. Suitable tenants are more likely to pay regularly on time, and want to live there. They become great referral tools, adding to your marketing strategy with good references. Ensure you engage with your tenants about upgrades that will further drive the attraction of your marketing. Investment in improvements such as a double garage or swimming pool can produce valuable returns.
Respect your tenant's privacy
Remain cognisant of the fact that the property becomes your tenant's home, even if you hold emotional attachment. You can't just turn up on inspections without making an appointment. The information they have imparted during screening should always remain confidential. The more tenants feel at home in their rental property, the more likely they will want to renew the lease.
What not to do
Don't rent to family or friends: It's fairly obvious - doing business with family and friends rarely works out. People who are close to you are more likely to expect an extension on the rent or even to pay less than other tenants. And it's hard to deal with legal issues under these circumstances.
Don't make friends with tenants: The same rules as above apply here. There's a difference between being friendly and being friends. Be polite, be professional, but making friends with your tenants will present the same problems as mentioned above. It can lead to stress, acrimony, and financial loss.
Don't chase rent checks: Be efficient with your screening and rental rules. Make your policy is clear at lease signing and give tenants more than one option to pay you. Whatever option is agreed upon, make sure your tenants know they will have to pay extra if the rent is late. Charging a late fee discourages tenants from procrastinating or forgetting to pay on time.
Leapfrog Property Group
Leapfrog Property Group offers a fresh and innovative approach to buying, selling, renting and property investments, ensuring the best property deals for clients across South Africa. Our agents are qualified, trained, experienced; our approach bold and spirited, driven by heart, generosity and honesty. It is our mission to advise, eliminate obstacles and save you unnecessary expense. Trust is our watchword. And value our motto. Armed with our combined credentials, we are the bright face of excellence in the South African market.
Author: Leapfrog Property Group
