Charge suitable rent for a suitable tenant

Successfully investing in rental property has one caveat - you have to be able to attract a suitable tenant.

And arguably the best way to go about this, says Martin Schultheiss, CEO of the giant Homenet real estate agency group, "is setting a fair rent and keeping it constant as market conditions and demand patterns change.

"The trick is to attract a responsible long-term tenant, and your chances improve if you set an equitable rental that gives your tenant a fair deal," he says.

"Successful landlords are only too aware that a frequent turnover of tenants is time-consuming and costly in terms of advertising, cleaning and painting expenses, and very probably vacancy time."

In this respect, the services of a reputable managing agent are invaluable to determine what would constitute a fair rental. "Such agents can track the effects of interest rate movements and other factors that influence the demand for rental property in the area and are able to suggest a market-related rental."

The classified section of the local newspaper is also a good reference point as it reflects what rentals are being asked for similar properties in the same location. And, says Schultheiss, it is always easier to enlarge the pool of prospective tenants by pitching your rental slightly lower than the going rate.

"This will give you the opportunity to choose the best candidate and if you keep rentals stable in future, you increase the chances that your model tenant chooses to stay put. And there is much to be said in favour of a tenant that takes care of your property and ensures you have a reliable rental income."
Loading comments
More news articles
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more