Landlord Tips & Tricks

Mike Hoxbig

Mike Hoxbig

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So following on from the Offer to Purchase thread, it seems like there is enough appetite in people becoming landlords.

Everyone has their own take on acquiring additional properties (buy cash vs bond etc.), and ultimately it comes down to your personal circumstances.

Post all your tips and tricks here...
 
Tips and tricks I got that I'm following with our in progress second property is "No, don't do it, just don't!".

Will only be doing short stay to family for the flat, can stay empty otherwise when we aren't there.

I'm sure there are properties that will attract the correct tenant but I'm not ready for that.
 
Thanks for starting this thread! I’ve been a landlord for ages but I’m always keen to learn and share

It’s worthwhile … but be prepared for some losses along the way.. just keep reminding yourself that you are acquiring an asset and your tenants are subsidising the bond repayments

All the best - enjoy the ride!
 
Make sure you take photo's and do an entrance inspection and an exit inspection for a lease with your tennants.
That will save yourself many headaches if things get broken, damaged or are just wear and tear as you have documented proof.
Also, if you get great tennants, sometimes its worth hanging on to them.
I havn't increased the rental for a few years, but i would rather hang onto my tennant than earn a few extra bucks.
 
See it as a business. The biggest power is using a flexi bond. Dont spend 1c of rental income (as you see that as double paying). At a stage it will snowball (and then you sit back and watch).

Also see how SARS can fund your "business" ... as in you can ALWAYS make a loss ! If not, regear and buy more property !
 
zerocool2009 said:
See it as a business. The biggest power is using a flexi bond. Dont spend 1c of rental income (as you see that as double paying). At a stage it will snowball (and then you sit back and watch).

Also see how SARS can fund your "business" ... as in you can ALWAYS make a loss ! If not, regear and buy more property !
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That last sentence. I'm not making the huge loss as i did in the begining. Any tips ?
 
zerocool2009 said:
Look to buy more property .... Or plan B (Paint your own house, upgrade bathrooms) .... :)
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Can't afford more property. And here's the kak - My residential property is 1400Km from the property i'm renting out. So how can i deduct residential upgrades from tax using the rental property as excuse ?

Edit: If there's an audit, the receipts will show my residential property ?
 
HunterNW said:
Can't afford more property. And here's the kak - My residential property is 1400Km from the property i'm renting out. So how can i deduct residential upgrades from tax using the rental property as excuse ?

Edit: If there's an audit, the receipts will show my residential property ?
Click to expand...

playing with fire there
 
its all about location location location,

if you get a good location the value it generates will easily pay the bond, and then some.
if you get a bad location, like JHB CBD, you basically brought an anchor to weigh you down with debt, as the hijackers and slumlords will clean you out.
 
Best real advice I got from successful landlords is "if you can't afford the bond and levies without the rent, you definitely cannot afford with the rent".

The past year had been a strong case for that advice.

Feeds into location, location, location and don't be far from your property.

I'm buying a flat that just saw it's target market unemployed. It's going to cost me what I currently waste on takeaway and eating out.

Once the local economy recovers, I will rent it out as by then we will be tired of our "weekend flat".
 
I read a book which describes being a landlord ! No FREE lunches ! And you see one tenant as as a leg of your investment. With time more and more legs come into play. And tenants come and go ! But only you benefit at the end of the day !
 
Best starting tip: being a landlord can be a full time job. It's not a free ride to passive income.

Best overall tip: tenancy selection is crucial.
 
eg2505 said:
its all about location location location,

if you get a good location the value it generates will easily pay the bond, and then some.
if you get a bad location, like JHB CBD, you basically brought an anchor to weigh you down with debt, as the hijackers and slumlords will clean you out.
Click to expand...

I know of some people that bought houses in Cosmo City purely to rent them out. They bought the places for like R150k or something and are renting them at R6k. And they haven't had any issues with the renters. You don't always have to buy where you want to live.
 
saturnz said:
and thats a very big if
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True dat.

It's a seaside village that historically has had a seasonal economy. Landlords are dumping their properties so a good time to buy if it can sit empty.

The most recent lease (signed two weeks ago) in the block is still 25% short of a bond payment after levies. Doing homework on historical rent in the area is very important along with problem tenants.

For example, one area I nearly bought in had permanent problems with delinquent tenants. Just 'cause you see a new merc in the parking lot, does not mean they will pay. Local rental agent's hated the area.

Make friends with a local rental agent as well to get the inside guts of the industry.
 
GhostSixFour said:
I know of some people that bought houses in Cosmo City purely to rent them out. They bought the places for like R150k or something and are renting them at R6k. And they haven't had any issues with the renters. You don't always have to buy where you want to live.
Click to expand...
if they pay rent on time and in full, then why the f*** not,
but then again, if you get some dodgy guys who do bad stuff, like slumlords and hijacking buildings, forcing people to pay them, rather than you,
and you need to hire security to come and deal with them, only for them to return later on,

then its not the wisest investment, it can become an anchor rather quickly.
 
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