Advice on renting out a flat yourself

H

hola

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Morning all,

we're going to be looking for a tennant for our flat in CT soon, and I thought I'd check if anyone has any hot tips or experience they'd like to share that could be helpful.

We've decided to manage it ourselves. If we don't feel 100% comfortable with the tennant we might sign up with rentmaster as a protection against nonpayment.

Any thoughts welcome - e.g. is private property a good site to advertise on?

Thanks!
 
Good solid contract.

I'm renting out a flat in Strand WC, but through an agency. They eat commision, lol. problem is i'm 1400Km away, so if the tenant have a problem, it's difficult for me to sort it out. So.... I pay the agency. Happy chappy.
 
Private property is good to go.

Inform any potential tenants that you want to do a credit check on them (tpn.co.za) - this will usually scare off any dodgy tenants.
Also request 3 months bank statements, proof of employment and any references from previous landlords if possible.

As HunterNW said, a solid lease contract is a must.

Also good old judge of character will be key here.

I would suggest asking for 2 months deposit as well as an electricity deposit. This must be kept separately in an interest bearing account.
 
Marlin, sounds like you know this business. Any tips for me being far away and doing my own private renting ?
 
Thanks, solid advice, especially re electricity deposit, hadn't thought of that one.
 
Also, any advice on what you do about annual increases? Do you put rent up 10% or keep it at inflation?
 
HunterNW said:
Marlin, sounds like you know this business. Any tips for me being far away and doing my own private renting ?
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To be honest, I have no idea - the only reason I know about this, is that I've recently rented out my own property. I do reckon if you have a relationship with/know with the tenant, you could go the route of doing it yourself once the current lease and agent agreement comes to an end. You may need to do inspections etc yourself (this in itself is not a bad thing).


hola said:
Also, any advice on what you do about annual increases? Do you put rent up 10% or keep it at inflation?
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From what I understand, this is done purely at your own discretion yet it must be listed in the rental agreement. I think you need to find the balance between inflation, whats fair and what the tenant can afford. Just make sure that this increase in line with increases in rates and taxes, levies etc so that you don't short change yourself.

I'll try attached an example of a lease agreement which I used View attachment Lease example.docx
 
As others have said make sure you have an airtight contract. Don't just buy those CNA things. I googled till I found a few and mashed them up. Make sure to get at least the three months bank statement and pay slip. Take nothing less than two months deposit and do not redirect your municipal statement to them. Rather continue receiving it and just email them a copy. That way you know if they're paying or not.

Very important: You need to keep their deposit in an interest bearing account which you hand over when they leave. Don't be one of those scaly landlords who include an exclusionary clause in your contract. You will lose in court.
 
Oh and if you can help it, do not rent to a single mother with children under 18yrs if I remember the age correctly. The law protects them and you won't be able to kick them out easily if they become non-payers. You would end up being responsible for finding them alternative accommodation if you want them out and they have the deciding vote if they like what you find for them.
 
I burnt my fingers renting out property privately, non payers, late payers, excuses, too much drama if you only want it as an investment. My advice would be to let it through a leasing agent, for 10% or 15% it's worth it in the long run which is what an investment is all about. My 2c
 
www.rentshield.co.za


Bulldog /(' said:
I burnt my fingers renting out property privately, non payers, late payers, excuses, too much drama if you only want it as an investment. My advice would be to let it through a leasing agent, for 10% or 15% it's worth it in the long run which is what an investment is all about. My 2c
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more often than not leasing agents simply walk away when things go sour leaving you with a mess to fix, I would rather pay that 10% to an insurance provider that will protect my interests, such as the one I linked above
 
Looks good however one should look at the monthly fees involved. Right now it's a thumb suck but if it's around 10% it's a go
 
Bulldog /(' said:
Looks good however one should look at the monthly fees involved. Right now it's a thumb suck but if it's around 10% it's a go
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I've been using them for two years and when things go wrong like they are currently with my tenant they take full ownership of the issue, there are other products which people also speak highly of on this forum.
 
i take a somewhat different approach with my properties.

i require a reference from the prospective tenant's employer ( they have to have been at the same employer for 3 yrs min)
i require references from 2 previous landlords
a credit check is also done

if prospective tenants meet the above they pay only 1 month deposit, with the option of having it amortized into the 1st yr's rental
if this option is chosen, i pay the deposit into a interest bearing account in advance & the deposit is recovered from the tenant over the 1st year's rental.
 
Grant said:
i take a somewhat different approach with my properties.

i require a reference from the prospective tenant's employer ( they have to have been at the same employer for 3 yrs min)
i require references from 2 previous landlords
a credit check is also done

if prospective tenants meet the above they pay only 1 month deposit, with the option of having it amortized into the 1st yr's rental
if this option is chosen, i pay the deposit into a interest bearing account in advance & the deposit is recovered from the tenant over the 1st year's rental.
Click to expand...

my service provider, rentshield, did a rather robust vetting process and I still ended up with a problem tenant, people change unfortunately
 
Grant said:
rentshield's performance in general - would you recommend them ?
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I won't recommend them as such, but from my experience with this tenant and how they handled it, I'm impressed.

I doubt any agent would have done half of what they have done.

As a landlord, you need insurance against tenants, and I think any insurance product that protects you is better than no insurance product.

edit: here is an extract from an email I was copied in on, I have not communicated with the tenant directly since February


If you want to find yourself in breach, continue.

You got your FNB attorney to email me. Perhaps you would like to receive a letter from our attorney confirming same and cancelling the lease due to your non-compliance. I have been VERY accommodating but my patience is running thin.

You are renting a property from the landlord and your refuse to give him access. Just take a minute to understand that statement.

Let's keep this amicable until the end of June, else we will hand it
over to our attorney. Please don't see this as a threat, I am tired
of this back and forth and your unreasonableness.
Click to expand...
 
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