Top reasons landlords should use a rental agent
Category Property Advice
Buying a second home and renting it out is a popular investment opportunity in South Africa. Property investors have the option of finding a tenant and managing the rental process themselves or of enlisting a rental agency to do so for them. The CSi Property Group breaks down the reasons why property investors should use the services of a rental agent, including the time and stress that can be spared, the importance of the correct systems and protocols and the ability to attract great tenants.
Saving you time and stress
A good rental agent will help to ensure that you get a reliable tenant. Their strict tenant-vetting protocols will look at your potential tenant's track record and financial history, while you as the landlord can still get the final say into who gets to live in your home. The rental agent will also check on the property periodically and arrange maintenance and repairs as required. As the landlord, you will simply have to approve the expenditure. The rental agent will also manage rental collection on your behalf and navigate the challenging process of evicting a tenant, if required, on your behalf. In a nutshell, you as the landlord will never even have to meet your tenant.
Systems, protocols and agreements
Rental agreements are complicated in South African law, and in many ways, the law tends to prioritise the needs of tenants. A reputable rental agency will be widely experienced in this field and will know the systems and procedures that need to be followed to find the right tenant and manage the relationship with that tenant to maximise your return on investment. Having a correctly worded lease agreement with all the necessary clauses is extremely important, and landlords can rely on the expertise of rental agents to ensure that all the i's are dotted and the t's are crossed.
COVID-19 has put a spotlight on the potential challenges that come with being a landlord. Having a rental agent ensuring that you comply with all relevant legislation, such as the Rental Housing Act and the Consumer Protection Act, provides peace of mind for you as a landlord.
Advantages for tenants
Signing a rental agreement through an agent also has many benefits for a tenant. This, in turn, provides another benefit for landlords, because it means that a higher calibre of tenants will be attracted. With a rental agent involved, a tenant has a level of assurance that maintenance will be taken care of and that notice periods will be adhered to. They also have the assurance that if they haven't done any damage to the property, they will get their deposit back at the end of their lease, as is required by law.
Choosing the right rental agent
The first thing to check when choosing a rental agent is whether they are registered with the Estate Agency Affairs Board and hold a valid Fidelity Fund certificate, which all rental agents are required to have. A second important factor is to look at the reputation of the company that the agent is affiliated with.
Advantages of using rental agents at a glance
- Background and credit checks are carried out to ensure that you get the best possible tenant.
- Your tenant's lease will be governed by a document that meets all legal requirements and lays out all relevant rules for both landlord and tenant.
- Letting agents are aware of market trends and will help you price your rental property correctly.
- Both landlord and tenant are protected by the presence of a middleman.
The CSi Property Group has rental agents who offer property investors in Gauteng, Limpopo and Mpumalanga all the advantages of years of experience and in-depth knowledge of relevant legislation. Contact us to help you find the right tenant.
Author: CSi EUF