Protect Your Rental Investment Property

It is a given that a tenant simply won’t invest in an owner’s property or tend to the garden as well as an owner would. How then do the buy-to-let owner protect his investment? Some advice to achieve this:

• Draw up a solid lease contract and vet tenants properly via a credit and reference check – choose only tenants with traceable references

• List all defects in writing against the tenants’ signature. Take pictures of every room

• Collect a security deposit equal to 1 months’ rent PLUS a utility deposit of at least R1 500

• Make it a condition of the lease that all improvements made by the tenant will remain at the end of the lease unless otherwise agreed to in writing

• Make it a condition that where permission is granted for a satellite dish, the wiring and dish bracket will remain at the end of the lease. This will prevent successive tenants from ruining the plaster and paint work

• · Replacement of consumables such as globes, fuses, filters, tap washers and unblocking of internal drains should be the tenants’ responsibility

• · Routine servicing of air-cons and garage motors should be the tenants responsibility

• · Make it a condition of the lease for the tenant to contract with a garden service for monthly maintenance

• Overcrowding is hard on the plumbing, floors, carpets, etc. Allow for max 1 person/bedroom. Explicitly state that domestic workers will not overnight on the property – yes it happens and contributes to overcrowding!

• Only allow pets if someone is home most of the time – dogs barking when left alone can be a huge problem

• Team up with a good handy man and keep your investment in good repair. It will attract a better class tenant who will look after the property to insure the value is kept high.

• Lastly, protect your investment against inflation – any rates and levy increases should increase the rent and deposit by the same amount.

A small percentage of the market will be lost in the vetting process. However, given that demand outstrips supply there will still be enough tenants around to ensure full occupancy - Jannie Engelbrecht

#villa #buyingahome #ertrert