Tabac
Honorary Master
Which seaside village ?
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Landlord Tips & Tricks
- Thread starter Mike Hoxbig
- Start date
zerocool2009
Honorary Master
I chatted the other day with 2 tenants (not renting with me). They are paying sewerage to refuse collection ! Every possible thing are carried over to them ! Sjoe, some landlords are just passing the buck !
zerocool2009
Honorary Master
A big tip for me is :
1) If you have 1 or 2 property's (manage it yourself). That aint work. If a geyser breaks, you call a plumber.
2) Invest in a sectional title estate with low levies (well managed)
3) Start doing your own tax. You can see how easy it is, and what you can write off and what not
4) Keep monthly book of all income and expense (if you skip 1 month, you will kick yourself)
4.2) Register for provisional tax (the tax man is ALWAYS your friend, remember that).
5) Don't be scared to wait for the "right" tenants. If you chase money, it will bite you. If you screen tenants, ask any and everything as see that as a job interview !
1) If you have 1 or 2 property's (manage it yourself). That aint work. If a geyser breaks, you call a plumber.
2) Invest in a sectional title estate with low levies (well managed)
3) Start doing your own tax. You can see how easy it is, and what you can write off and what not
4) Keep monthly book of all income and expense (if you skip 1 month, you will kick yourself)
4.2) Register for provisional tax (the tax man is ALWAYS your friend, remember that).
5) Don't be scared to wait for the "right" tenants. If you chase money, it will bite you. If you screen tenants, ask any and everything as see that as a job interview !
Other Pineapple Smurf
Honorary Master
Kleinmond.
So many staff at Arabella got laid off and the town reminds me of the early 90's now. We always joked that if we could get a place for under a mil we would buy, bam, it's a smorgasbord of property now.
The story being repeated all over the area. Too many places with rentals going for R4K now and many families/older individuals moving in together.
What I liked about the area is that it has fibre, is safe, walking distance to shops and beach - location!
I aim to buy a place every 5 years in the area once we get to know the place better. So long term, I'm interested in following the landlord route. We can pay a place off in 5 years without rental income.
zerocool2009
Honorary Master
Yes you can ! I am at a stage where i buy a new place every 3.5 years CASH !
One of the biggest tips in life, how to use a FLEXI bond. If you double the payment to the bank, you save HUGE interest costs ! So lets say you have 5 properties, you carry all the costs, and you five fold the payments to the bank (as capital)... the result : IT SNOWBALLS WITH TIME !
Other Pineapple Smurf
Honorary Master
Awesome advice.
Tabac
Honorary Master
OOOo Kleinmond. Dit is mooi daar. Let me go see what's for sale
Look to buy more property .... Or plan B (Paint your own house, upgrade bathrooms) ....
Your plan B is called tax evasion and can land you in jail. Buying more property can be within the rules (just don't try to claim capital payments as an expense!), but best get a tax consultant to make sure that you don't end up breaking the law until you know the rules well enough to do your tax yourself. Also remember that SARS will ring-fence your rental business after 3 years (think it is 3, not 100% sure), after which it won't play into your income tax anymore.
I'm very unlikely to rent out ever again, especially with the current 'no-evictions' regime. Should I ever become drunk enough to consider renting out again, a few things that will be key:
1. Pictures before and after each tenant, signed by the tenant.
2. Proper inspections by myself - won't trust a rental company again.
3. Prepaid electricity. Even if the bill is in the tenant's name, the owner remains liable if the tenant defaults on the bill.
4. Get a list of reputable contractors (painters, electricians, plumbers) in the area. If a tenant complains about a power failure while the rest of the complex have electricity, you have to be able to resolve it promptly; you don't want to search around for a good electrician then only.
You're not allowed to! The landlord is required by the Rental Housing Act to place the money in an interest-bearing account, held with a financial institution.
Take photos of the sealed municipal meters every time a tenant moves in so that if there is tampering, you have evidence!
If possible read water meters monthly so that if the municipality does “interim readings” you don’t suddenly find yourself with a huge bill!
You can also get prepaid electricity meters for tenants
If possible read water meters monthly so that if the municipality does “interim readings” you don’t suddenly find yourself with a huge bill!
You can also get prepaid electricity meters for tenants
zerocool2009
Honorary Master
Use bank rewards programs to pay levies (or rather, get rewards back) ! Its another FREE perk for doing nothing about (and you benefit).
zerocool2009
Honorary Master
Another tip ... NEVER close a bond ! If you dont use it (in private capacity or using it for rentals) ....
You paid thousands of rands for getting the bond ! Its money available on the snap of a finger ! So if its paid up (leave it paid up) ! And after 20 years, reset the period back to 20 years AGAIN !
You paid thousands of rands for getting the bond ! Its money available on the snap of a finger ! So if its paid up (leave it paid up) ! And after 20 years, reset the period back to 20 years AGAIN !
yes, I was audited for a few years in a row, I had to supply evidence for all deductions
I only pay the rates. Everything else paid by the tenant, its third party services.
RonSwanson
Honorary Master
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There is an old saying: Ver van jou goed, nader aan jou skade.
If you are serious about investment, consider something closer, unless your risk appetite is huge.
This part I don't get yet.
So I have a bond with standard bank
If I settle this bond now, say the bond is for 1 million and I deposited R990k in it now
What now.
Can 1 bond be used for different properties, is it not tied to the unit it is bonded on?
zerocool2009
Honorary Master
The bank dont worry what you use prepaid money for. Firstly you save on interest.
Lets say you bought a property for R1kk, and you paid it off, but leave it open... and your children need a car, or you want to go on a holiday, or revamp a kitchen .... cash is available at your finger tips.
You paid fees to get the loan, so use it for the future if needed.
zerocool2009
Honorary Master
Another landlord trick I learnt over the years, dont put more than 10% deposit down when buying property to (rent out). You lose that money’s re-use forever....
As in you cant use that to buy again if needed. This is a tip on buying. 10% show the bank you are coming to the party, so they will give you an ok/better rate vs no deposit
As in you cant use that to buy again if needed. This is a tip on buying. 10% show the bank you are coming to the party, so they will give you an ok/better rate vs no deposit
Tabac
Honorary Master
Ware woorde. If needed my whole family lives close to where i bought the flat. So far the rental agency is doing a great job. Haven't had issues in 5 years.
I like risk
And closer ..... Nopes. I assume (Which i shouldn't) the WC is the place to invest in ?if you understand leveraging then this should be obvious