11/09/2017
ADVICE FOR POTENTIAL NEW LANDLORDS
RUN THE NUMBERS, CAN YOU AFFORD TO OWN A RENTAL PROPERTY?
There are always costs involved in owning a rental property. Costs would include the remainder of the bond repayment, ongoing maintenance costs, rates and taxes, levies, insurance, etc.
The services of a Professional Estate Agent will also be useful for the screening possible tenants, collecting the rent and managing the property.
A landlord should always set money aside for the general upkeep of the rental property, to upgrade and replace, in order to keep the property current, should you wish to place the property back on the market in the future.
SELECT THE RIGHT PROPERTY
Ask yourself – why would a tenant choose to stay there, is it a property you would be prepared to stay in yourself? Tenants tend to select a property that is secure, well maintained, close to schools, easy access to highways, close to amenities, not too expensive to keep up (gardens, pools, etc), offer a lifestyle.
THE BASICS
There are some items that should be checked prior to the tenant moving into the property, saving a lot of time and money and also an unhappy tenant:
• the stove must be in working order
• All lights must be working
• Leaks and damp sorted out sooner rather than later
• Check that the gutters are clear of debris
• Pool pumps, air conditioners, gate motors, alarm systems, etc serviced and in working order
• The house and property clean and well maintained
If the property is in good condition and is well maintained, and the landlord is proactive in terms of attending to maintenance issues, the tenant tends to take more pride in the property and looks after it as if it is their home, and not just a place to stay.
SPEND TIME ON THE PREPARATION OF THE CONTRACT
Spend time on the preparation of the Lease Agreement. This will avoid any misunderstandings or complications with the tenants down the line.
SPEND TIME ON CHOOSING THE RIGHT TENANT
Renting to a friend or family member is tempting but should a problem arise it could impact negatively on the relationship. A full credit check on the tenant is imperative. Landlords should enquire about details of the tenant’s previous rental history, reasons why they are moving, place of employment and income. Again a rental agent will be a valuable asset when selecting the right tenant.
REWARDS - WORTH THE EFFORT ?
While it may not always be considered as the easiest endeavour, owning a rental property and becoming a landlord can be a financially rewarding venture. Property should always be viewed as a long-term investment and a rental property should be seen as such, in order to yield a decent return on your investment. Yes, it is worth the effort,
For all your rental enquiries, please do not hesitate to contact
Diane Fullard at Seeff Properties – 082 331 8227
