How to secure the best rental property
Category News
The start of the year usually brings a flurry of activity in the rental market, from new job market entrants looking for their first rental to others looking to move to a better home or neighbourhood.
Whatever the reason, chances are that you could find yourself in a competitive rental market with multiple tenants vying for the same property. In high demand rental areas, it is not uncommon to find multiple applications for a property, especially in the affordable price bands or popular property types such as security blocks and complexes or houses near schools and transport networks.
Given that most properties tend to rent out quite quickly, it is best to be prepared so that when the right property comes onto the market, you can move quickly with your application. In some areas, rental properties move so fast that they are not always advertised. It is therefore advisable that you put your name down with an agent in the area where you are looking.
What you will need for a successful rental application:
Good credit record
A credit score of 600-plus gives you a fair chance but the higher the score, the better. Your credit score provides information about your payment record. Issues flagged on your record must be cleared up before your application can be considered. You are entitled to one free credit report annually so check your record regularly. The best way to keep a good record is to keep your debts under control and pay regularly. Late, non-payments and defaults will affect your credit record.
Affordability assessment
The Consumer Protection Act (CPA) requires an affordability check measured to ensure adequate net income available to cover the monthly rent. You can combine income if married or renting with a partner and can include additional (verified) monthly income. You will need salary slips and bank statements, usually three months for full time employment and six months for a commission earner or self-employed. An accountant's letter may also be needed to verify net income if self-employed.
Strong references
Background checks usually include references from the applicant. A previous landlord is usually preferred which is why good relations with your landlord is so important. You can also nominate other referees such as your manager, a colleague or other people who can attest to your character. Strong references are important so be sure to arrange with the respective individuals beforehand so that they know to expect a call.
Application and documents
You will need to complete an application with your personal details including employment and provide credible references including any previous landlords. In terms of FICA, you will need to include a certified copy of your SA identity document and proof of address. If you are a foreign resident, you will need proof of your RSA residency permit. You will also need to provide your proof of income and bank statements as noted above, all certified.
Costs and cash needed
You will need cash available to pay a security deposit, generally equivalent to one and a half or two month's rent as well as the first month's rent in advance. The deposit should be placed in an interest bearing account for the benefit of the tenant. You will additionally need funds available to pay the costs, usually a credit check (around R115) and contract and admin fees (around R750). The costs and deposit are payable upon signature of the lease and the rent on date of occupation.
Lease agreement and inspections
You should be provided with a written lease agreement setting out duties and obligations, use of the property, monthly rental and payment details and other pertinent information including conduct rules for complexes. An incoming inspection must be done, and a checklist attached to the lease. An exit inspection will be done when the lease terminates. Ensure you pay your rent on time and keep the property clean and maintained per the lease agreement.
Be aware of rental fraud
Criminals posing as rental agents often advertise fake properties and ask for money upfront such as an application fee and then disappear with the money. Never transfer money unless you have personally verified the request and bank details. Always verify the credibility of the agent and the property. All rental agents must be registered with the Estate Agency Affairs Board (EAAB) and hold a valid Fidelity Fund Certificate (FFC). You can verify this on the EAAB website.
Author: Gina Meintjes
