Property Rental, a thought...

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guest2013-1

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I was just doing my bit in the house to keep it clean while I was thinking about what was said about deadbeat renters...

Why not get them to sign a debit order?

I mean, a place to live should be your #1 priority right? Then, getting to work, having a job etc...

So if a renter signs a debit order for his rent to go off at a specific time in the month, why not?
 
It is not always easy to convince a tenant to sign a debit order. If he refuses you either have to take the chance with him, or find another tenant
 
It's not always easy to convince the owner to accept a debit order as most of them want cash so they can keep that rental money tax free....
 
I have property rented through an agent, and the agent insists on debit order, and I wouldn't have it any other way.
The type of tenant that refuses the debit is not the type I want as tenants, and there's enough good tenants out there so no problem.
 
LancelotSA said:
It's not always easy to convince the owner to accept a debit order as most of them want cash so they can keep that rental money tax free....
Click to expand...

That's a bit stupid. It's a tax break if you rent out property that costs you more a month to
maintain...
 
And SARS checks both the title deeds AND your bank accounts - you can't just try to pocket the money... And tax evasion gets you prison time these days!
 
chris2.0 said:
And SARS checks both the title deeds AND your bank accounts - you can't just try to pocket the money... And tax evasion gets you prison time these days!
Click to expand...

How would they know you rented your house out ? If all payments were made by cash ? you can say the place was vacant or you were staying there cant you ?
I'm not a fan of beating the system but would like to know how they get around that.
 
Bondizzo said:
How would they know you rented your house out ? If all payments were made by cash ? you can say the place was vacant or you were staying there cant you ?
I'm not a fan of beating the system but would like to know how they get around that.
Click to expand...

All it takes SARS to find this stuff out is 1 phone call (or less) dude. Remember, the person staying at your house is probably going to use it's as their address to send mail and **** too.

Then they'll go "Gee, I wonder why 2 people with different surnames would use the same house"

*Pops over an agent*

OOOohhh we see Mr. Bondizzo is renting out his property, oh but wait, he's not paying tax on this extra income... interesting!
 
PythonFSi said:
You might still get an 'insufficient funds' notification. So its not 100%.
Click to expand...

It's not 100% but it forces the person (and you have better control over the payment of) to have the rent ready.

Remember if the debit order fails you can immediately warn your renter. No need to wait for his bull**** stories of having the rent but getting it stolen out of his car or that his dog ate it or some ****.

You immediately hammer him with "I'm sorry but I received an insufficient funds notification on your debit order, please EFT the rent before the 10th".

Most guys who sign debit orders won't think twice about it anyway because their salaries gets paid into their bank accounts (you'd definitely need to run a credit check at least and have references of previous renters)
 
AcidRaZor said:
All it takes SARS to find this stuff out is 1 phone call (or less) dude. Remember, the person staying at your house is probably going to use it's as their address to send mail and **** too.

Then they'll go "Gee, I wonder why 2 people with different surnames would use the same house"

*Pops over an agent*

OOOohhh we see Mr. Bondizzo is renting out his property, oh but wait, he's not paying tax on this extra income... interesting!
Click to expand...

I rented a place from a guy for over three years on his property and he insisted I pay cash... I never had a rental increase in that time so I asked no questions... but every so often he would make mention of the fact that if anyone asks those were elaborate servant quarters at the top end of the garden....

It happens!

Yes, you may be talking about the main house on any property but then don't just assume I was!
 
True but still. SARS knows all ;)

I'm just happy all my IRP5's and **** gets done online now, now I don't have to even see my accountant anymore...
 
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