New property company to guarantee tenant deposits and breakages

Should a tenant abscond or leave a property in a bad state, the newly launched Guarantee Exchange South Africa (GEXsa) can provide guarantees to long and short-term rental agents and owners.

The company will also provide financial flexibility for cash-strapped consumers who are credit worthy but struggle to come up with a three-month rental deposit.
This will help consumers who are hampered financially by having to pay a two to three month's deposit. Instead they can sign an agreement and pay a nominal fee based on their monthly rental in lieu of the deposit. Having checked the credit worthiness of the individual, GEXsa will be able to have a guarantee issued to the owner or agent within a matter of minutes.

"Due to changes in the macro environment, a one month security deposit has become insufficient.  With the demand now for two to three months rental as a security deposit, it is difficult to conclude rental agreements," says Cathy Foster GEXsa CEO.

"The biggest challenge facing landlords and rental agencies for both short and long term rentals is securing a reliable tenant, who has the correct credentials, can afford an adequate security deposit and firmly commits to return the property in the same condition it was handed over to them.

"The short term rental market requires much more than three months for breakages - thus the reason for guarantees of a higher value which range from R200 000 to R700 000."

Tenant details are recorded on the GEXsa website which is connected to the Tenant Profile Network(TPN) to assess tenancy history. Paperwork is then logged online and once all documentation has been loaded and payment has been made, a guarantee is issued.

The Guarantee is issued to the owner or rental agent and an email confirming that the Guarantee has been issued is mailed to the tenant. 

 "The cost to the lessee is determined by the rental contribution which is marginal in comparison to a three-month rental deposit which is the norm," says Cathy Foster.   
GEXsa Guarantees are underwritten in partnership with SA Guarantee Specialists, a registered UMA dedicated to this specialist sector of the market. All the guarantees will carry a claims paying ability rating of AA (or better).  The lessor will therefore always have peace of mind that all of the guarantees will be honoured and that SA Guarantee Specialists will facilitate the claim process in the event the lessee fails to pay rental or the cost relating to damages. The lessor is settled in full and SA Guarantee Specialists will pursue outstanding debt from the tenant.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us