select
|

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
  
2000
Characters remaining


    Latest Property News
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
        
    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