Sell or rent out?

esvi

esvi

Senior Member
Joined
Mar 21, 2011
Messages
504
Reaction score
8
Location
Johannesburg
So I bought a nice little unit in a complex about a year ago. I currently live there but recently put it on the market to sell - It's in Lyndhurst and I want to move closer to Fourways.

I have been told that things can be a bit slow selling since banks are not giving 100% bonds (I got 100%, a year ago) these days and people don't have that 10% deposit required. I have had quite a few interests but they just can't get the deposit together.

Thinking of renting it out in the meantime but I'm a little concerned since people don't take care of your place the way you would. Do agents manage these people entirely or would I be forced to deal with them personally, if say, they burn down the place? :wtf:

Anyone have really bad experiences - or even good - to share about renting out a home? Also names of agencies you prefer to use would be helpful :)
 
I've regretted selling some of my previous properties. You do run the risk of people destroying it with renting out, thats why with one of my current places I rather went with an estate agent, they do all the screening, get a deposit etc, and if there are any issues they will arrange for professionals to fix. I'm only paying 8% which I think is reasonable.
 
I have / had properties that I rent out.

If it's in a complex I would rent it out.

Depending how hands on you are , I would suggest not using an agent. If it's fairly priced you can find a tenant on private property. The agent does add value in the finding process but doesn't take any ownership. So if the tenant stops paying you have no recourse. Rather take that 8% and if you feel nervous use it to get rent insurance. Will be cheaper and at least you are guaranteed your income. Credit check will cost you a hundred rand or so.
 
esvi said:
So I bought a nice little unit in a complex about a year ago. I currently live there but recently put it on the market to sell - It's in Lyndhurst and I want to move closer to Fourways.

I have been told that things can be a bit slow selling since banks are not giving 100% bonds (I got 100%, a year ago) these days and people don't have that 10% deposit required. I have had quite a few interests but they just can't get the deposit together.

Thinking of renting it out in the meantime but I'm a little concerned since people don't take care of your place the way you would. Do agents manage these people entirely or would I be forced to deal with them personally, if say, they burn down the place? :wtf:

Anyone have really bad experiences - or even good - to share about renting out a home? Also names of agencies you prefer to use would be helpful :)
Click to expand...

post your property24 etc link here :whistle:
 
ozziej said:
I've regretted selling some of my previous properties. You do run the risk of people destroying it with renting out, thats why with one of my current places I rather went with an estate agent, they do all the screening, get a deposit etc, and if there are any issues they will arrange for professionals to fix. I'm only paying 8% which I think is reasonable.
Click to expand...

It's probably better for me to use an agent, especially since I have no experience in dealing with tenants. And having them phone for every little thing. I agree, 8% seems like a fair trade for that.
 
gimpex said:
I have / had properties that I rent out.

If it's in a complex I would rent it out.

Depending how hands on you are , I would suggest not using an agent. If it's fairly priced you can find a tenant on private property. The agent does add value in the finding process but doesn't take any ownership. So if the tenant stops paying you have no recourse. Rather take that 8% and if you feel nervous use it to get rent insurance. Will be cheaper and at least you are guaranteed your income. Credit check will cost you a hundred rand or so.
Click to expand...

Didn't know rent insurance was a thing. Does kind of make sense to go that route, although surely you can get this type of insurance when using agents as well?
 
I wouldn't bother with an Agent. The market is full of renter's looking, you just have to do your due diligence and get someone who pays. When I was renting my property, the renter started paying late, then a month late, then 3 months late. So make sure you do a credit check, get deposit + 2 months rent etc.

Can't remember the company name, but there is one that handles these things for you AND guarantees rent being paid in (they make it their problem if rent isn't paid on time) so you have peace of mind when it comes to that.
 
Rent Insurance is at about 10%, Agent another 8 to 10%. You're looking at getting 80% of the rent back. That's roughly how much we are getting back.

The rent insurance guys also does a screening on the tenants. If I was closer to the property, I would go without the agent and do checks on the property every 3 to 6 months.
 
marco79 said:
The rent insurance guys also does a screening on the tenants. If I was closer to the property, I would go without the agent and do checks on the property every 3 to 6 months.
Click to expand...

I understand Landlord having access with prior arrangement but every 3-6 months having to be checked?
 
Rent insurance and agency management fees are also tax deductible if I understand it correctly. So it's not a total loss.

Peace of mind rather than a piece of your mind.
 
marco79 said:
Rent Insurance is at about 10%, Agent another 8 to 10%. You're looking at getting 80% of the rent back. That's roughly how much we are getting back.

The rent insurance guys also does a screening on the tenants. If I was closer to the property, I would go without the agent and do checks on the property every 3 to 6 months.
Click to expand...

I need to check but I think insurance closer to 5%
 
esvi said:
Didn't know rent insurance was a thing. Does kind of make sense to go that route, although surely you can get this type of insurance when using agents as well?
Click to expand...

You can use both of course but just think twice about the benefit of the agent. I know it sounds daunting but in my case they would add very little value. And it doesn't take away from your responsibility of looking after the place.

Before pro agents jump at me , this is my take on agents ( in my situation ).

Finding tenants - I use sites like private property. Basic application form. Then on those who appear most serious ( or first come ) I do a credit check. If successful they have 24 hours to transfer deposit. Otherwise move to next person.

Maintenance - most if not all times I can get a better job done for less. An agent has his contacts and he calls them to do the job. Then bills you. I sometimes do it myself or get a guy to do it but then have better control over it.
 
Shellyb1 said:
Rent insurance and agency management fees are also tax deductible if I understand it correctly. So it's not a total loss.

Peace of mind rather than a piece of your mind.
Click to expand...

Correct. Both can be offset against your rent income.
 
gimpex said:
You can use both of course but just think twice about the benefit of the agent. I know it sounds daunting but in my case they would add very little value. And it doesn't take away from your responsibility of looking after the place.
Click to expand...

Can't argue with that :)
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X