Lew Geffen has been in the real estate industry since 1972, is recognised as one of the leading experts in property in South Africa and holds many directorships in associated real estate and allied industries.
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Do You Have What it Takes to be a Landlord?
Author: Lew Geffen Sotheby's International Realty | Published: January 19th, 2012
If you are in a position to buy to rent in South Africa, there remains a large market for rentals due to the rising number of people who aren’t able to buy their own homes. An advantage to leasing a property lies in the fact that it can be a good income as well as a sensible way to pay off existing mortgages.
Your Responsibilities as a Landlord
Ya’el Fine, Executive Director of Lew Geffen Sotheby’s International Realty warns those interested not to consider renting as a passive form of income. She expresses intently, “There is some work involved in being a landlord.”
You will need to ensure that all household maintenance is up to scratch as well as making sure you’re available for phone call requests at odd hours regarding problems like burst geysers and break-ins.
Your responsibilities also stretch to interviewing the tenants, advertising and hosting tours of the property.
Renting is a Business
If you don’t approach your rentals as a business venture, it’s not going to work for you. You need to make sure you have the time to run your property as well as the temperament to be a landlord to avoid it becoming an expense.
According to Fine, newcomers renting out homes are often unsure of how to deal with tenants, the legalities and the financials. They instead outsource the letting to a professional property management company.
The Consumer Protection Act is a Factor
The Act offers landlords very little in terms of action against tenants and virtually no way out of leases. A way to manage this problem is with intensive tenant screening and credit history analyses. It is vital to obtain your tenant’s full identity, rental history and an accurate picture of their credit standpoint.
It is advisable to bring in a professional property management company to manage this. Qualified real estate agents are better informed in terms of the Consumer Protection Act and other legislations that apply to the property rental industry. They will also assume the role of mediator between you and your tenants and be of particular value when it comes to lease negotiation and rent, behaviour and misconduct, and damages and maintenance to the property.
Take the Time to Make it Work
Although there are dangers involved in property rental, the key to making success of it as a business lies in managing these risks closely and with care. You need to be able to handle the stresses of being a landlord and have time for it, otherwise it will simply become more trouble than it’s worth.
Your Responsibilities as a Landlord
Ya’el Fine, Executive Director of Lew Geffen Sotheby’s International Realty warns those interested not to consider renting as a passive form of income. She expresses intently, “There is some work involved in being a landlord.”
You will need to ensure that all household maintenance is up to scratch as well as making sure you’re available for phone call requests at odd hours regarding problems like burst geysers and break-ins.
Your responsibilities also stretch to interviewing the tenants, advertising and hosting tours of the property.
Renting is a Business
If you don’t approach your rentals as a business venture, it’s not going to work for you. You need to make sure you have the time to run your property as well as the temperament to be a landlord to avoid it becoming an expense.
According to Fine, newcomers renting out homes are often unsure of how to deal with tenants, the legalities and the financials. They instead outsource the letting to a professional property management company.
The Consumer Protection Act is a Factor
The Act offers landlords very little in terms of action against tenants and virtually no way out of leases. A way to manage this problem is with intensive tenant screening and credit history analyses. It is vital to obtain your tenant’s full identity, rental history and an accurate picture of their credit standpoint.
It is advisable to bring in a professional property management company to manage this. Qualified real estate agents are better informed in terms of the Consumer Protection Act and other legislations that apply to the property rental industry. They will also assume the role of mediator between you and your tenants and be of particular value when it comes to lease negotiation and rent, behaviour and misconduct, and damages and maintenance to the property.
Take the Time to Make it Work
Although there are dangers involved in property rental, the key to making success of it as a business lies in managing these risks closely and with care. You need to be able to handle the stresses of being a landlord and have time for it, otherwise it will simply become more trouble than it’s worth.
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