Securing and retaining good calibre tenants
Category Rentals
According to the TPN Residential Vacancy Survey as at mid-2024, Cape Town continues to boast the strongest residential rental market in the country. The data also shows that the metro has the lowest overall vacancy rate in the country at around 2.33%.
This is broadly boosted by factors including a buoyant holiday and short-term rental market in the Cape as well as semigration which adds further to the rental demand. The higher interest rate over the last two years combined with the weak economy has also pushed more people into the rental market, thus adding further to the demand.
An important aspect which has come to the fore over the last few years, especially during the pandemic, has been the importance of attracting and retaining good calibre tenants. Reliable tenants ensure a consistent income stream which in turn will minimise financial stress for the landlord.
A good calibre tenant will also treat the property with care, thus reducing maintenance costs while preserving its value. Good tenants also tend to stay longer by renewing their leases which minimises vacancy periods between tenancies, and the potential cost which could arise from a vacant period.
To attract a good calibre tenant, the property should be in a good condition and well-maintained so that tenants will want to live there, and be prepared to pay a reasonable rental. The landlord should also be responsive to any maintenance or tenant needs, provided of course that these are reasonable.
If you find a good tenant who pays on time, it is always advisable to keep that tenant when they want to renew the lease. One way to do this, is to keep rental increases in line with the market so that the tenant feels motivated to remain in the property.
A good lease agreement which sets out the terms and conditions of the tenancy, and responsibility of both parties to the agreement should form the basis of a good rental deal. Additionally, the property should be inspected from time to time, but always in a respectful manner, and by arrangement with the tenant.
If the tenant raises specific needs which could be accommodated, then the landlord should consider those if reasonable. Always foster good tenant relations including ensuring that you appoint a good rental agent, preferably someone with experience in the area as they will have insight into the best suited tenants and how to manage them for the best outcomes.
Always ensure the rental agency can provide the latest legally compliant contract, documents and procedures so that your interests are protected. A good back-office support system should also be in place to ensure the property and tenant is well managed, rent is collected timeously, utilities and services are paid, and so on.
A good calibre tenant is as important as keeping the property itself in a good condition. Ultimately, good tenants can ensure that landlords are able to leverage maximum returns on their rental property investment.
Seeff offers a superior rental service to landlords backed by strong Proptech, legal compliance and a back-office infrastructure for an end-to-end rental solution. We secure and manage hundreds of rental properties and tenants each month.
If you would like to know more about our rental services, please feel free to contact us at any time. Having operated successfully for many years, we can provide the right expertise and solutions to unlock maximum value for you in the current property market.
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Author: Gina Meintjes
