How rental agents help mitigate rental risks for landlords
Category Rentals
Rental property investment can be one of the most rewarding investments, but it can also pose risks, especially these days in view of the ever evolving legislation and compliance issues.
A rental property investment is a significant financial commitment, and risks to the ability to earn sustained rental returns and keep costs contained, especially around maintenance and damage, could be substantial.
Unlike other types of investments which require very little administration or effort on the part of the investor, a rental investment comes with various compliance issues as well as ongoing administration and management. This is precisely why working with a skilled rental agent can help mitigate the risks associated with rentals for landlords and property owners.
There are essentially two types of mandates. The first is a sourcing mandate where the agent will find a suitable tenant for the property. The second type of mandate is a management service where the agent will manage both the property and tenant/s. The client can choose either or a combination of both.
Putting the wrong tenants in a property can have numerous consequences, from non-payment of the rental and running up arrears to causing damage to the property or being a nuisance to neighbours. The role of a rental agent is to mitigate this risk by skilfully assessing and vetting tenants and recommending a suitable tenant to the landlord or property owner.
The legal risks can also be substantial. It is no longer possible to lock out tenants or simply evict them. There are stringent processes to be followed. Seeff works with top legal experts to ensure our agreements are watertight and protect the interests of the landlord/property owner.
Inspections are another area of risk management. If there is damage at the end of the lease period and no incoming inspection was done, it could potentially result in the landlord being out of pocket to get the maintenance or repairs done. Ensuring these inspections are done timeously and correctly helps mitigate this risk.
A watertight agreement combined with stipulated actions to be followed in the event of a breach of contract is another way to mitigate risks. Often, time is of the essence, and working with a skilled rental agent means that immediate action can be taken in the event of a breach of the conditions of the lease such as non or late payment.
By choosing a management option, the agent can proactively manage the property and tenant on an ongoing basis. Issues such as maintenance or damage can be raised and addressed quickly rather. This is especially vital if you do not live close to the property or simply do not have the time that is needed to manage the asset and occupation.
Working with Seeff as your rental agent means you have chosen a top property brand with an excellent reputation for rental services which is backed by top specialist legal advice and the latest rental Proptech. We offer a full service, from sourcing to ongoing management of the tenant and property, depending on the requirements of the property owner/landlord.
Our documentation is fully compliant to ensure that the interests of the property owner are protected, and we have a rental support department to assist every step of the way. Home is our Story and property my passion. Please feel free to contact us at any time to discuss your property needs.
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Author: Gina Meintjes
