There a strong case for using letting
agents if you want to rent out your
property.
But there’s an equally strong case
for doing it on your own, and
earning the fee an agent would earn
if they did it on your behalf.
You must be cautious during every step
of the process, however. My own
experience of letting out my house in
Westdene, Joburg, is that when looking
for a tenant, you simply can’t judge a
book by its cover.
The fun part is loading flattering
pictures of your space online on free ad
posts. And there’s a definite buzz
when you see responses coming in
from people who like what you are
offering. But now begins the real work.
The reality is that if you’re going
to be your own agent, you need to
acquire the fact-finding skills of a seasoned
agent, who is quick to surmise
whether or not the applicant is a serious
contender. So in between showing
off your space, you need to subtly
establish:
-
where the applicant is living;
-
why they’re moving out;
-
if they’ll be living alone or with
someone;
-
if they have pets;
-
whether they smoke;
-
where they work and what they
do and
-
how much money they are
earning (which should be at least
two thirds more than the rent).
I’ve needed some skill sharpening
in this department in the past because
I’m easily charmed and persuaded, and
I’ve often found myself driving away
from an hour of pleasant chatter with
none of the answers to these questions
answered, only to discover later that
the chat was just that, with no intention
by the applicant to follow up.
People’s circumstances and lifestyles
are hugely varied, so you also
need to have some idea of who you’re
looking for: a student, single professional,
couple or family? Still, you
cannot guarantee how tenants will
behave once in your property. I once
had a family unit – grandmother, couple
and two children – who seemed a
perfect fit, but unbeknown to me they
then moved in five dogs, three cats and
a leguaan that lived in a glass enclosure
on the kitchen shelf.
When the family moved out, my garden
was a dust bowl, and it took
well over a month to nurture it back
to acceptable.
Suffice to say, your lease should
tightly cover as many bases as possible,
including any maintenance requirements
(the garden and gutters), number
of pets allowed, length of stay
for visitors, and small but important
details, like how many nails may be
driven into the wall. Once you have
found someone who seems a good
fit and who is interested in applying,
your inquiries have to – of necessity –
become even more prying. Enter the
credit check.
I found the best online credit check
is TPN Credit Bureau, which specialises
in property rentals and charges R95 for
occasional checks (cross-checking with
TPN, TU, Experian and CPA) and scores
the applicant on rent affordability,
credit payment record, and whether
there are any debt reviews, defaults,
notices, disputes or judgments in
place.
Other documents required are
the last three months of bank statements,
which show incomings and
outgoings – important to determine
whether the applicant is receiving
enough to cover rental – and a copy
of their identity document.
Were the process as clear cut as
credit and banking checks, however,
finding a tenant would be easy. The
reality is that most, including myself
possibly, have a less-than-pristine
credit rating, so the next part of the
process should be a more human
endeavour.
In the case of my latest tenant, I
called her current landlord and also
a creditor she pays monthly to verify
that she is a good payer, which holds
more water to my mind.
Time will tell, however, whether
you have a good tenant.
If it turns out you don’t, it’s important
to act swiftly.
Greg Vermaak, senior partner of
Vermaak & Partners and a prominent
name in the field of evictions in
Joburg, offers this advice: “If you end
up with a ‘bandit’ tenant, don’t waste
months on having letters written and
seeking help from the Rental Housing
Tribunal, which is effective if both
parties are honestly trying to resolve
an issue, but not in cases where the
tenant is just playing for time. Rather
see a lawyer and seek a motion to
evict as soon as possible. Just get the
legal process going because it can take
months.”