INVESTMENT SERIES
PART
7 First Time Investor Guide
KNOW WHO TO TRUST
Finding a rental agent
BY MONIQUE DU TOIT
F
or many first time investors , the thought of paying an agent to manage your property might seem unnecessary . Whether or not you choose to make use of this service will depend on your circumstances : do you have time to deal with viewings , background checks , maintenance , or evictions ? And , more importantly , do you have the necessary knowledge to do these things in the right way ?
For most of us , the answer would be no . This leaves us with the inevitable choice to call in reinforcements in the form of a rental agent . Before you do , there are a few things to look out for .
Know what you ’ re paying for
There are two types of agents involved in the rental process : letting agents and property managers .
A full property management service will take care of the entire rental process . This includes advertising your property on relevant platforms , screening and selecting a tenant , and setting up the lease agreement . Once the tenant has been placed , the property manager will also be responsible for collecting rent , checking on the property and managing any necessary repairs , and serving any notices .
Letting agents , on the other hand , only take care of the initial process of advertising the property and placing a suitable tenant . The day to day management of the property , including collecting the rent , is the landlord ’ s responsibility .
Tenant placement
David Beattie , author of The Expert Landlord , explains that tenant placement is the first and most crucial step in being a successful landlord . “ The success or failure of your property investment begins with the placement of a quality tenant ,” he says . The first step in the process is marketing your property at the right price . Aim too high , and you risk having your property sit on the rental market for months .
When it comes to marketing your property , know your target audience . Regardless of your ideal tenant , there are a few simple rules to keep in mind . The first step is taking good photos of the property . Most prospective tenants are looking for their next home on the internet . The goal , here , is to focus their attention on your property . Many agencies offer a professional photography service as part of the rental service . If this isn ’ t in your budget , at least stick to the simple rule of good lighting and an uncluttered appearance .
The next step is setting up viewings with prospective tenants . This gives you the opportunity to meet someone face to face , which could provide some helpful insights into whether or not they ’ ll be a good tenant . Look out for small things like whether or not they were on time for the viewing , were polite and professional , or asked relevant questions about the property . This could show you whether or not the person is serious about the property and will take care of it .
Once you ’ ve selected a tenant , it ’ s time to set up the lease agreement . Everyone is in agreement that the lease should be as detailed as possible . This will be your backup should things go wrong in future . Details such as payment date for rent , who ’ s responsible for different types of repairs and maintenance , and who pays for utilities like water and electricity , should be included in the lease . The golden rule is to make sure that nothing is left open to interpretation .
The final step in the tenant placing process is handing over the keys to the tenant . At the same time , a thorough property inspection should be done . This is done to protect both the landlord and tenant , since it will highlight any existing problems . This will make the process going forward much smoother , since both parties will know what to expect .
Property management
Beattie explains : “ Once you have placed a quality tenant , your
24 JUNE / JULY 2018 SA Real Estate Investor Magazine