8 Things to first consider before you rent out your property
Owning and renting out a property may be a profitable financial investment. As a landlord, making sound decisions can ensure that your monthly passive income generated is a rewarding endeavour. On the other hand, going into the process blindly can end up costing you more than you earn. Before you rent out a property, it is essential to plan, research, and prepare properly with the help of industry professionals, such as our experienced team at Fine & Country South Africa.
- Pricing your rental fairly
Be realistic when setting your monthly rental price. Set the price too high, and you risk waiting a long time to find tenants. Setting the price too low to find tenants quickly is also a risk, as it may attract unfavourable renters. Do some homework on the going rate of similar properties to rent in the area to ensure what you charge is comparable to other rentals on the market.
- Screening tenants takes time
Don’t be fooled by first impressions – tenants can become a major headache if they are not vetted well. Be sure to investigate their credit history, employment status, and bank statements to guarantee you are getting renters who pay on time and treat the property with care. It is far better to take your time finding the right tenants than to rush the process and deal with issues down the line.
- Invest in aesthetics
Want to attract the right prospective renters? Make sure the property you rent out impresses them. If a home makeover is not within your budget, stick to affordable design updates such as a fresh coat of paint, replacing handles and light fixtures, or a few garden features.
- Prioritise safety
In South Africa, crime rates are a concern for anyone moving into a new home. Before getting tenants, try to update the current security. Look at securing the premises with better outdoor lighting, sturdy security gates and burglar bars on windows, and even alarm systems.
- Get everything in writing to prevent issues
The lease agreement between yourself and the tenant is an opportunity to lay out the guidelines of what your future engagement with them entails. This includes how management and repairs in the property are handled, as well as how complaints are approached. A detailed contract prevents future disputes.
- Management will always be important
If you wish to retain good tenants who rent your property, then you must keep up to date with maintenance and repairs that are needed. Carrying out repairs timeously and keeping the line of communication open with your renters will keep them happy for a long time to come.
- Handling conflicts amicably
It is not uncommon for disagreements between landlords and tenants to arise but resolving it without dragging each other to court is preferable. For minor conflicts that do not require immediate eviction from the property you rent out, try to handle the disagreement informally. Landlords can also lodge complaints with the Rental Housing Tribunal, which will help to resolve disputes and inform both parties of their rights.
- Get the right professionals involved
From real estate lawyers to accountants that help you keep to those strict tax laws, having professional assistance on your side can alleviates stress. Partnering with a rental agency that specialises in upmarket properties is also a wise idea. We at Fine & Country South Africa, for example, will make use of our sophisticated marketing technologies to attract the right tenants while smoothing out all the details that frustrate so many property owners.