select
|

New landlords need experienced agents

The increased mobility of South Africans in the current tough economic environment is set to turn more private property owners into landlords – and estate agents into property administrators – with potentially damaging results.
 
“Already we see more homeowners relocating within SA in search of work or taking up off-shore contracts to remain employed,” says Greg Harris, CEO of Chas Everitt Property Rentals, “and we expect this trend to accelerate as SA begins to feel the unpleasant economic effects of its junk status.
 
“However, because of the time it takes to find buyers at the moment, many of these owners are also opting to hang on to their properties and rent them out until they return – or until the economy improves and the property market becomes more favourable to sellers.”
 
In response to this, and to the rising demand for rental properties, he says, many estate agencies that have previously been largely geared to property sales are now taking on a property rental and administration role.
 
“And while there is nothing inherently wrong with that, it often results in two inexperienced parties being involved in an arrangement where specialised knowledge is actually just as important as trust and transparency.
 
“In any leasing arrangement, there is also potential for dispute between the landlord and the tenant and between the landlord and the agent, and this is of course multiplied if both are not totally aware of what they want or what needs to be done.”
 
To avoid these risks, Harris says, new landlords should preferably seek out an established and reputable agency with proven expertise in rental property management.
 
“Secondly, they should make sure they give the agent a clear, written mandate before the property is let – and detail the role that they wish the agent to play. Is it simply to advertise, let the property and collect the rent? Or will the agent also be responsible for checking potential tenants' references and creditworthiness, and for routine maintenance work and regular checks to see that the property is being kept in good repair?
 
“It is essential that landlords also instruct the agent to take a proper inventory before tenants move in, and on their departure, especially if they are leasing furnished accommodation. The degree of involvement will obviously influence the agent’s commission, and this should also be agreed in advance and noted in the rental mandate.”
 
Thirdly, he says, new landlords should be very careful when it comes to setting the monthly rental for their property at the right level, and here too, the advice of an experienced rental management agent can be invaluable.
 
“Good agents will track the effects of economic conditions, interest rates and consumer confidence levels on the demand for rental property, and on achievable rentals in their areas.
 
“They will also know the value of keeping quality tenants in place and of tailoring rental packages and rental increases to do so.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 May 2018
      Reliable public transport systems moving a mass of commuters to and from work, keep a city’s economy moving. Not only do they have a positive impact on economic growth, successful rail links also influence property values.
    • 25 May 2018
      The live, play and visit environment that Centurion Residential Estate & Country Club offers continues to attract buyers looking for a very specific lifestyle and ambiance.
    • 25 May 2018
      As expected, the Monetary Policy Committee kept the repo rate stable, with analysts and market commentators ahead of yesterday's announcement (24 May 2018) pointing to a more hawkish stance amid a weaker rand, somewhat less stable global environment, and an eye on the inflation outlook – coupled with the increase in VAT and sizeable hike in the price of fue
    • 24 May 2018
      Most real estate professionals agree that 2017 was one the toughest years to date; an eminently challenging 12 months that subdued even the strongest markets - including the country’s economic powerhouse of Sandton.
    • 24 May 2018
      These are uncertain and challenging times for the real estate industry, but the non-profit organisation Rebosa is fighting for their interests and finding pragmatic solutions to industry issues such as the urgent need to fast-track transformation says Richard Gray, Rebosa chairman.
    • 24 May 2018
      The decision to invest in property isn’t one that’s taken lightly, or dealt with flippantly. The same should ring true when deciding on an estate agent partner to handle the letting out of your property.
    • 23 May 2018
      Homeowners who are thinking of selling and “trading up” to a bigger or a better home had better be quick now if they want to get the best deal.
    • 23 May 2018
      The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
        
    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