Preparing your property for the rental market
Category Rentals
Regardless of the reason that you decide to rent out a property, it is important to understand the difference between a home that you live in compared to what you will rent out.
Personal versus rental home
Most people have customised items and fittings in their home, and it is always advisable to remove and store these, especially if they hold special meaning. Tenants also usually prefer an unfurnished home, so it is best to clear out and store your furniture. Generally, tenants require exclusive use of the property so you cannot for example use part of it to store stuff.
Ensure it is fit for rental
Every suburb has certain parameters in terms of the rents achieved and it is best to work with a local agent to assess the viability of the potential rental returns in the area. The property must be well-maintained and cleaned before it is listed as a rental property. Security is an important feature for tenants so this may need to be beefed up if lacking.
Who pays for what?
The tenant will be required to pay a monthly rental appropriate for the particular home and area together with certain additional costs. These include basic usage of utilities such as water, electricity and refuse removal but property taxes and sectional title levies are for the account of the landlord.
Maintenance, garden and swimming pool
The landlord cannot use any part of the invested tenant deposit for maintenance, and it is best to create a cash reserve to cover any potential maintenance or emergencies at the premises. It is also advisable to contract a service provider to look after the garden and swimming pool. This cost can be built into the monthly rental. That way the landlord can control maintenance of these vital aspects.
Legalities and working with a rental agent
A watertight lease agreement which deals with the various legal aspects including termination of the lease should be in place before the tenant takes occupation. It is vital to do incoming and outgoing inspections and to record the condition of the property. The deposit must be invested in an interest bearing account for the benefit of the tenant. The landlord cannot use the funds for the duration of the lease, and it must be refunded with interest to the tenant following termination of the leave but subject to fair deduction as dealt with in the lease agreement.
To ensure your rental property is taken care of starts with securing quality tenants and managing the tenants and property for the duration of the lease. Given the time needed and technical and legal complexities, it is always best to make use of a skilled rental agent with a track record in the area.
Home is our Story and property my passion. As a top real estate brand across the Southern Suburbs and Constantiaberg with a 57-year track record of success, the Seeff brand has a strong reputation backed by state-of-the art technology and systems. Please feel free to contact us at any time to discuss your property needs.
Our thoughts and well wishes also go to UCT, the students and others who have been affected by the recent devastating fires. A reminder that time is always of the essence. If you spot anything out of place including anything burning, take appropriate action immediately. For fires, contact 107 from your mobile or call 021 480 7700. For City of Cape Town emergency contacts, see https://www.westerncape.gov.
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Author: Gina Meintjes
