First time renting out my place

C

creeper

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I'm moving to another house and not selling my existing property. By chance, I already have a person that wants to rent my old place. However, I've never done the rental process before. Contract isn't a problem as I have a legal person that can help with it, but the other things, e.g. credit check of potential renter, etc. is still a bit of an unknown.

For those that are renting out places, a few questions?
  • Do you use a rental company? (I don't need one at present, as I already have a person in mind)
  • Who do you use to do credit checks? (website / company). How do you detect chronic defaulters?
  • Do you get references for potential renters?
  • Any gotchas that I need to look out for?

Thanks
 
if its a house, sell it, and buy a proper buy to rent unit, preferably in Cape Town
 
I used a rental insurance as opposed to an agent, there is not much an agent needs to do with a sectional title unit.

All risk is effectively carried by the insurance, so things like deposit, credit checks, damage to the property etc were a non issue from the start.

Its a business, treat it as such as and you will have little problems.
 
You can get most of the stuff from TPN.
If you already have someone you trust you can go ahead an do a standard contract with them.
We prefer to use rental agents to lighten the load - but then we have quite a few places though.
We do get references of potential renters including their ID and bank statements.
No gotchas we experienced so far. Most people will pay and look after the place, but every 1 out of 5 won't look after the place, but will still pay. But usually you make enough to cover damages - put some money aside for this. People may start of well and then end up in dire straits, unfortunately one then needs to get them off the property - as the other person said, it's a business. However I am too soft and have let people go without two month's rent, that is why I prefer agents as well.
 
fabrulana said:
You can get most of the stuff from TPN.
If you already have someone you trust you can go ahead an do a standard contract with them.
We prefer to use rental agents to lighten the load - but then we have quite a few places though.
We do get references of potential renters including their ID and bank statements.
No gotchas we experienced so far. Most people will pay and look after the place, but every 1 out of 5 won't look after the place, but will still pay. But usually you make enough to cover damages - put some money aside for this. People may start of well and then end up in dire straits, unfortunately one then needs to get them off the property - as the other person said, it's a business. However I am too soft and have let people go without two month's rent, that is why I prefer agents as well.
Click to expand...

Thanks. This helps quite a bit.
 
Rental agents are useless and don't provide much value add, except when you are in a hurry to rent it out. In my case I used a rental agent to find someone and do background checks. I paid a finders fee and that was it. If you live nearby to the house you are renting out then it's easy, as you can pop by and do your own checks on the house.
 
Start crying now... it will save you from all the crying youll be doing later..
 
Hi, bump
Any advice for renting without an agent?
I have someone that is interested already.

Can I do a basic background check on my own?
 
bar1 said:
Hi, bump
Any advice for renting without an agent?
I have someone that is interested already.

Can I do a basic background check on my own?
Click to expand...

Just download a decent rental agreement, that is the most important document. List everything on there or change anything that you want. I would also get a few references from their previous landlords if possible (or if needed) I rented a place out once and the lady said she worked at Discovery Sandton, so one day I just rocked up at her work <-- I just wanted to double check she actually worked there!

  • Oh and they will most likely always be late on paying, but they will pay.
  • Have a little excel template if you're doing the rent, and clearly write the dates of the bill. eg. June rent R10,000, May electricity, May water etc etc. Remember water + elec is bill in arrears. Write down and take photos of the meters on the day they move in, show them or email it to them as proof.
  • Always take a deposit, because then you have the power.
  • Always have multiple keys and remotes made for you only.
  • You can ask them to go to mycreditcheck which is free, and it will show you their entire credit score etc, its basic but does show you any defaults and loans etc
  • Be weary of pets, some are chilled, some will destroy your house
  • Remember it's a rental, so you have to do maintenance every month.. and yes it happens
  • Take a hundred clear photos of everything in the property, and I mean everything, close up etc, just do it
  • Send out your rental bill on the 25th as an example due by the 30th, never be late! Write in a due by date...
  • Do not be weak and let them continuously pay late
  • Be weary of young party animals... you'll regret it, just stick to old lesbians or something, they're trustworthy! lol
 
creeper said:
I'm moving to another house and not selling my existing property. By chance, I already have a person that wants to rent my old place. However, I've never done the rental process before. Contract isn't a problem as I have a legal person that can help with it, but the other things, e.g. credit check of potential renter, etc. is still a bit of an unknown.

For those that are renting out places, a few questions?
  • Do you use a rental company? (I don't need one at present, as I already have a person in mind)
  • Who do you use to do credit checks? (website / company). How do you detect chronic defaulters?
  • Do you get references for potential renters?
  • Any gotchas that I need to look out for?

Thanks
Click to expand...

1) No, doing it myself! See this as an interview. You could be a happy landlord, or being used!
2) Yes, TPN etc. Ask the potensial tenant to download it themselfs, saving you R200
3) Ofcourse, from who they work for, their boss's details, if they rented before. Make it personal once off. (as I said, you could be happy, or rather wished you sold it).
4) Renters who want to pay 3 to 6 months upfront.
If they are taking endless for admin requests
Take a deposit! (its like a no brainer), and specify upfront if they will earn interest or not.
 
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