Using a rental agent, your options
Category Landlords
Property is a significant financial investment. If you are investing with the view to earning rental income, you will want to ensure that your property is occupied by a good tenant who pays their rent on time and looks after your property.
It may seem easy enough to invest in a rental, but it can be fraught with challenges. While there is high demand for rental property, not all tenants are in good standing. Rental legislation is complex and dealing with a delinquent tenant can be challenging, especially if you need to evict.
There is no investment without risk and a rental property is no different. Using a skilled rental agent to manage your rental property helps mitigate some of that risk so that you can maximise your investment returns.
Procuring a good tenant
It all starts with putting the right tenant into your property. Even then though, there are no guarantees, but at least if you follow the correct steps you can ensure you find a good calibre tenant.
As a result of the legal complexities and extensive vetting required, more landlords are now turning to skilled rental agents who have the systems and processes in place to assist with procuring the best tenants for their property.
Two aspects are important; a good credit record and history of paying debt on time, and secondly, affordability in terms of the tenant having a regular income that is sufficient to cover the rental.
The property needs to be in a good state of repair and your agent will highlight any repairs or maintenance which needs to be undertaken to ensure the property meets the requirements for a rental.
Vital to the process, is ensuring you have a watertight lease agreement which manages some of the risks associated with a rental. It should be up to date on the latest legislation and deal with aspects such as the rental deposit and maintenance.
Management service
Looking after a rental property can be cumbersome. A skilled rental agent will be familiar with the ins and outs of looking after rental properties and can provide this to you at an additional monthly fee.
In addition to keeping your property occupied with a good tenant, an ongoing rental management service ensures your property is looked after by a skilled professional. Services would include managing tenant enquiries, billing and rent collections, renewals and rent increases. The agent will also perform periodic checks on the property and coordinate maintenance needs.
Your rental agent will also assist with the incoming/outgoing inspections to ensure that the property is handed over in a good state and will manage any issues which may need to be attended to. The tenant will be managed and monitored closely and if a problem arises with the rent payments or otherwise, the agent will alert you if legal intervention is required.
The agent will also manage the renewal or termination of the lease through to the exit process which would include an outgoing inspection, any maintenance and repairs needed as well as the deposit refund while simultaneously sourcing a new tenant and so on.
A final point to note, is that all rental agents must be registered with the Estate Agency Affairs Board (EAAB) and be in possession of a valid (current) Fidelity Fund certificate.
Author: Gina Meintjes
