Renting out property - Advice needed

[Sicilian-Najdorf]

Hi All
So I'm going to be renting my flat out.
I've read some horror stories about problem tenants not paying etc...

Is it worthwhile to get rental insurance?
The agent that deals with the area quoted me 10% of the rental amount for managing the rental and a further 3.5% of the rental for insurance, the insurance is through tenrisk.

This is my first time renting a property out so I'm kind of in the dark.
Any advice would be greatly appreciated.

Thanks

 

[RedViking]

What does 'rental insurance' cover? I was managing a property for someone and there was a lady that stopped paying rent. You are not allowed to just kick a person out. Had to see a lawyer. R800-R1000. Had to deliver a letter to say she has to be out by X date because of X reasons by the sheriff. Can't remember how much that was. After she got the letter and she didn't vacate I paid the lawyer another R15K deposit to escalate the matter directly to high court after which the lady fortunately packed her bags. Another friend of mine have spent R150 000 on legal fees to get someone off his property. Eventually I think they paid the person directly to move..... Sick.

So how much does the insurance cover as it can get very expensive and even then you are not guaranteed?

The trick is to give someone notice within 24 hours of them not paying their rent that they have to move out. The faster you act, put emotions aside, the easier it is. After 24 hours get a lawyer. Don't wait.

Some people now ask 3 - 6 month deposit. The people that rent has to fill in an application form + have to be interviewed and references to previous owners they have rent from.

 

[Barbarian Conan]

Agent management, no. You get almost nothing for that 10%.

Rental insurance, yes. I didn't have it, but would have gotten it if I rented it out to another tenant. Rentshield looked pretty good.

 

[shadow_man]

I'm using house.me - 3.5% charge (if you show property yourself + do your own pics). They do the vetting + contract and included 3 months rental insurance against tenants defaulting.

 

[zerocool2009]

Why pay someone to give you reports / screen people / tell you what is wrong !

Be hands on and do it all yourself ! And rather reward yourself vs to pay someone to be a mailbox.

That include from screening potential tenants tot replacing geysers. Even if you pay insurance, someone on the other side is laughing to the bank for sure (Let it be you rather)

 

[TechGirl04]

I looked at these options last year when renting out my property for the first time. In the end I decided to go with an agent and added tenrisk for the same reasons you mentioned. The agency did their homework and found good tenants and luckily I have not had any problems. That being said, there are many bad agents out there and you never really know what you are getting in terms of tenants - even if their paperwork looks good.

Where are you based?

 

[Rocco1]

I'm using house.me - 3.5% charge (if you show property yourself + do your own pics). They do the vetting + contract and included 3 months rental insurance against tenants defaulting.

Plus 1 for house.me

Wont get any agent for that cheap and the 3 months insurance is great (maybe not long enough for a full legal 6 month process). only downside is you don't have a say in screening the candidates.