Choosing the right rental agent is critical for landlords
Category Rentals
A key learning from the challenges brought on by the Covid-19 lockdowns has been the vital role of a good rental agent. When it became apparent that tenants may not be able to pay their rent and evictions were disallowed, agents played a key role together with their legal partners to provide solutions to assist landlords and tenants navigate the historic challenges.
While the market has fortunately moved beyond these challenges, it has highlighted the increasingly complex legal landscape that pervades the residential rentals market. Gone are the days where landlords could simply lock out or evict delinquent tenants. Deposit cannot simply be withheld to cover damage either. A host of new legislation, amendments and regulations have aimed to professionalise the rentals sector, but has also made it more complex.
Working with a good rental agent has become an imperative advantage for landlords, but they should ensure they choose well. There are many newcomers who do not offer the experience or systems and legal support necessary to ensure your asset is protected.
The risks of not choosing a good rental agent and management is particularly high for landlords. They could end up with tenants who do not pay their rent, damage the property, or who do not want to vacate. The lost rental income, and eviction process can quickly turn into a nightmare.
Choosing the right agent offers many benefits. It offers experience, skills and top class systems which are critical for landlords. An experienced agent will ensure the rental rate is appropriate for the market and will implement a vetting process to ensure a good calibre tenant is placed in the property.
The right agent will go further by ensuring there is a watertight rental agreement which is legally compliant and protects the landlord's interests.
What to look out for when choosing a rental agent?
If you are unfamiliar with who the top rental agents in the area are, ask for recommendations, or look around to see which agent/agency boards appear, especially those which show that they have rented out a property in the area.
Be careful of not just choosing the first agency board that you see or offering the lowest commission. Make a shortlist of three agents maximum and set up meetings to interview each.
Some probing questions to ask during the interview:
Probe the agent on their experience and ask for information about the properties that they have rented out, how long it takes and whether they have had to deal with challenging situations.
Check that the agent is registered with the PPRA (Property Practitioner's Regulatory Authority) and that they are in possession of a Fidelity Fund Certificate which must be valid for the current year.
The agent should be able to provide information about the current rental market conditions as well as how they would go about sourcing and vetting a tenant for your property.
The agent should also provide information about the services that they offer and processes that they follow. Check that the agent can assist with vital inspections required to safeguard the landlord's interests.
The agent should also provide advice to the landlord on how to prepare the property for the rental market including any maintenance which needs to be done.
Should the landlord choose to retain the services of the agent on an ongoing basis to manage the tenant and property, then it is important to check that they have the necessary systems and processes to facilitate collection of the rent, payment of levies and costs and attending to maintenance.
The agent should be enthusiastic about the property, yet be open and honest about the market, and provide you with the best advice, even if it is not quite what you had hoped to hear.
Granting a Sole Mandate to the agent is another important aspect to ensuring success.
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Author: Gina Meintjes
