Tips for renting out a flat

RiaX said:
Im confused on how the water/electricity/levies etc work ? I know legally the owner is responsible but how does it work in the rental scene ? does it come out of the rent ? or does the tenant pay it ? or is there a limit that can be provided by the landlord and if the tenant exceeds it they have to pay ?
Click to expand...

Quite normal for tenant to pay electricity. You don't want to agree to pay electricity, just in case you get a Bitcoin miner, but you are on the hook if the tenant doesn’t pay.

You'll be lucky to find a tenant who agrees to pay levies. That's not normal.
 
RiaX said:
Im confused on how the water/electricity/levies etc work ? I know legally the owner is responsible but how does it work in the rental scene ? does it come out of the rent ? or does the tenant pay it ? or is there a limit that can be provided by the landlord and if the tenant exceeds it they have to pay ?
Click to expand...
You can contract electric and water to be payable by tenant, you can't do that for the levy though..

However, you can work the cost of the levy into the rent.. but, that depends on what other similar units in the vicinity are asking for rent wise.. doesn't help pricing yourself out of the rental market..
 
Levies are for the owner! So are rates and taxes!

I have tenants who pay an all inclusive amount (including water and lights). Just set rules upfront in the lease
 
Do you guys recommend getting landlord insurance ? if so which companies have you had dealings with ?

We got a company managing the property for us. Though since im totally noob at this some advice is needed
 
I had landlords insurance for 4 years and never had to claim

Currently, my wife and I rent out 6 flats. All are within 10 mins driving distance. No problem getting reliable tenants

In March 2020 we reduced the rental by 35% for 5 of the flats and by 100% for the one flat where the tenant's job disappeared. This lasted for 8-9 months. There was no rental increase in 2021. This year I raised rents by between 8% and 11%

All the tenants have been there in excess of 6 years and are honest people.

There are pre-paid electricity meters. The levy covers the water, which I pay, plus rates
 
Ive done one or the other in the past never both. When I manage the property I take insurance and with a managing agent I don't. Never had to claim though so don't know if its worth it to be honest if you vett people properly. My plan was always to buy a number of flats but I've since changed my mind and rather invest the money maybe if I can buy 10 at a time one day it will be different.
 
WAslayer said:
One and only tip, don't do it..
Click to expand...
What he said

2he8hj.jpg


The reason why .............. my own experience twice in 18 months. It cost more than it was worth, and the law in SA favors the tenant, not the property owner.

In all honesty - I hope you find a good tenant, but honest advice. - renting is a terrible sport in South Africa.
 
I've got a company vetting and finding good tenants with excellent supporting documents. All seems legit. Company has good reviews.

Guess I'd just have to jump in and see how it goes.

Guess since im new to the game I'd get it for now.

@chrisc who are you insured with ?
 
RiaX said:
Im confused on how the water/electricity/levies etc work ? I know legally the owner is responsible but how does it work in the rental scene ? does it come out of the rent ? or does the tenant pay it ? or is there a limit that can be provided by the landlord and if the tenant exceeds it they have to pay ?
Click to expand...
Utilities - water, electricity are paid by tenant.
Levies are paid by owner, usually amortised into the monthly rental.

As 3WA said - credit vetting is critical.
Corporate is great - universities are always looking for accommodation for visiting academics (note - not students).
Contact the DBN universities.

Don't be shy to offer a significant discount on rental if it can be paid either 6 monthly or annually in advance.

Include a clause in the rental agreement stating the tenant is responsible for all costs / fines related to any contravention of the conduct rules of the building - immediately deductable from deposit.
While you, the owner is legally responsible for the conduct of visitors / tenants, the clause will give you leverage in the event of any contraventions.
 
Grant said:
Include a clause in the rental agreement stating the tenant is responsible for all costs / fines related to any contravention of the conduct rules of the building - immediately deductable from deposit.
While you, the owner is legally responsible for the conduct of visitors / tenants, the clause will give you leverage in the event of any contraventions.
Click to expand...

Yoh thanks I did not think of this
 
I pay someone to manage it, rental contract looks pretty hectic, so far no problems with collecting the rent.
 
Why dont pay yourself? If someone dont pay, the agents hands are also cut off! They will just instruct you to get a lawyer involved
 
RiaX said:
Im confused on how the water/electricity/levies etc work ? I know legally the owner is responsible but how does it work in the rental scene ? does it come out of the rent ? or does the tenant pay it ? or is there a limit that can be provided by the landlord and if the tenant exceeds it they have to pay ?
Click to expand...
Tenant pays electricity separately - this needs to be mentioned in contract. Water, in case of sectional titles, is generally waived. Levy & rates are for the owner to pay and rental amount obviously should include them as a guideline.
 
azbob said:
So rather let the tenants deposit the rent to your pensioner mother then?
Click to expand...

Unless you’re running at a loss, then you want the biggest % back.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X