select
|

Holiday rental agents are bound by the same ethics and operation requirements as long term rental agents

With Western Cape holiday letting being extremely popular, so comes the increase in homeowners and agents wanting to get on “the letting bandwagon” to benefit from the influx of visitors to this region, says general manager of the Institute of Estate Agents, Western Cape, Annette Evans. 
 
However, for some time now there has been some confusion as to whether or not a holiday letting business and their agents are required to hold Fidelity Fund Certificates (FFCs), which is what is stipulated by the Estate Agency Affairs Board as a necessity for agents handling property transactions.
 
A recent case encountered by Institute of Estate Agents Western Cape, is one where the owner let out his home as holiday accommodation and did not know how much his property had been rented out for, nor was he made aware of all the details surrounding the use of his property – the only thing he received from the rental agent were a few ad hoc payments for what was deemed to be the owner’s share.
 
“I recently interviewed a few reputable holiday letting business owners to get their input on the industry and common practices,” said Evans, “who confirmed that their processes maintain absolute transparency as dictated by the Estate Agency Affairs Board’s (EAAB) Code of Conduct.” (This is downloadable at www.eaab.org.za/disciplinaries/code_of_conduct.)
 
Reputable holiday letting companies will adhere to the following steps and procedures: 
 
·      an initial mandate between the owner and the agency will be signed by both parties – stating the commission payable – and the majority will charge between 15% and 20%;

·      each booking is usually approved by the owner beforehand;

·      each contract between the owner and the client is signed; and

·      commission for each let is invoiced separately and linked to a booking.

 
Rates charged are not always on their websites as they communicate, negotiate and vet their clients on a case by case basis. 
 
It has to be noted, said Evans, that anyone found guilty of an offence by the Estate Agency Affairs Board, which licenses and regulates agents, risks being disqualified from practicing in real estate altogether. 
 
For those who have been “wronged” by someone acting unscrupulously, there is recourse via the EAAB, with procedures listed on their website as to how to go about reporting and claiming from the Fidelity Fund.
 
“We suggest strongly that owners considering renting their premises out as holiday accommodation deal with reputable agents, who should offer complete transparency from the beginning to omit misunderstandings. Also ensure that you are dealing with someone who delivers a service as stipulated by the Code of Conduct,” advised Evans.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
    • 17 Apr 2018
      By the end of 2017, very few housing markets remained unaffected by the mounting pressure of the prevailing economy and political climate but some fared better than others, especially sought-after, well-situated suburbs like Parktown North that tick the top boxes on buyer’s wish lists.
    • 17 Apr 2018
      With urbanisation at its peak and population density in major cities reaching frustrating levels is it any wonder that more South Africans are choosing to move away from the chaos to a quieter life?
    • 16 Apr 2018
      When you are selling your home, you will have potential buyers coming to view it. During these times, you will need to ensure that each room of your home is clean and beautifully decorated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK