The Rental Mandate is the cornerstone of rental success
Category Rentals
A well-crafted Rental Mandate is a precursor to leveraging maximum success and rental returns from your investment property.
Seeff's Rental Mandates are continuously updated to ensure legal compliance and to enable us to provide the best service to our clients. The mandate sets out the exact service/s to be provided, and specifies the obligations and duties of the agent and landlord. This provides clarity so that the interests of the landlord are protected.
The specific terms of the mandate vary depending on the needs and services that the client requires. Landlords should carefully consider what is included in the mandate to ensure a thorough understanding of the obligations and responsibilities of the agent vis-à-vis the tenant and property.
There are typically two types of rental mandates, the "sourcing mandate", and the more comprehensive "management mandate".
The Sourcing Mandate
The "sourcing", or tenant procurement mandate generally only includes that which is needed to find a suitable tenant for the property. The agent's duties typically include marketing the property, arranging and conducting viewings, screening potential tenants (including vetting and credit and affordability checks), and drafting the lease agreement.
The tenant will usually collect the deposit and first month's rent, and do an incoming inspection, but that is where the agent's role ends. The landlord assumes full responsibility for managing the tenant and the property, including rent collection, maintenance, and tenant relations.
The Management Mandate
A management mandate goes beyond tenant placement. In addition to finding and onboarding a tenant, the agent also handles all aspects of property management on behalf of the landlord. This includes rent collection and financial management, tenant communication, incoming and outgoing inspections, managing maintenance and property related issues, lease renewals, and eviction processes if necessary.
The agent acts as a liaison between the landlord and tenant, providing regular reports on the property's performance. This option offers landlords a hands-off approach to rental property ownership, allowing them to focus on other investments or responsibilities.
Choosing the most appropriate service is vital. Rental property ownership can be fraught with challenges such as tenant turnover, property maintenance costs, lack of liquidity, and the potential for legal disputes.
Unlike passive investments such as property funds, a bricks and mortar investment requires time, management and expertise to ensure the property retains and grows in value.
There is simply no substitute for experience and expertise. Rental agents are well versed in the legal and procedural aspects of tenant and rental management and the nuances of rentals. They work with tenants every day, thus offering a wealth of experience in managing different, and at times difficult circumstances.
Seeff's rental services aim to unlock maximum potential for our rental clients. If you would like to know more about the services that we offer, or would like to chat about leveraging more freedom and financial benefits from your rental investments, contact us today.
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Author: Gina Meintjes
