Managing rental properties from afar can be challenging, but with the right strategies and tools, it can be done efficiently.
READ: Rental relations: Who's responsible for what?
“There are two vital parts to managing rentals when the landlord is in a different country, province, or area,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. “The first is to hire a reliable managing rental agent who can handle all the day-to-day operations, tenant interactions, maintenance, and emergencies,” says Goslett.
After finding the correct professional, he recommends setting clear guidelines and expectations for your property manager regarding maintenance, payments, and reporting issues. “Being upfront and clear about your expectations will help to avoid any misunderstandings about who was meant to be responsible for the various tasks.”
The next vital part is to ensure that the tenant is properly screened to minimise the risks of rental arrears or misconduct. Arrange with your rental agent to screen the tenants carefully to ensure they are reliable and responsible. “The last thing you want is to be dealing with a reckless tenant who causes damages or neighbour complaints while you are out of the country,” he mentions.
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That being said, damages and regular wear and tear will occur on any rental home. These can be tricky to manage from afar, so Goslett recommends that landlords establish relationships with reliable local contractors for regular maintenance and emergency repairs. “Arrange for your managing agent to conduct periodic inspections to ensure the property is being maintained properly. It can also be useful to implement a preventative maintenance schedule to avoid major repairs, as these can be tricky to oversee effectively from afar,” he notes.
Especially if you are living in different time zones, Goslett adds that it can be useful to provide tenants with a list of emergency contacts for issues like plumbing or electrical problems. Your managing agent should also be the emergency contact person who can handle these situations on your behalf.
By hiring competent local professionals and maintaining clear communication, Goslett says that you can effectively manage rental properties from a distance. “Thanks to online calls and video technology, it is no longer necessary to limit your property portfolio to your immediate surroundings. When done right, diversifying your portfolio in this way can safeguard your returns and bolster your income.”
“If you would like to explore the idea of investing in a different province or country, reach out to a real estate brand with an extensive local footprint and a truly global reach, like RE/MAX,” he says.
READ: Rights and responsibilities in rental housing – know where you stand
In a previous article Abrahams & Gross’s Litigation and Dispute Resolution attorney, Henno Bothma discussed the important of a lease agreement and shared, for a landlord, renting out their property can be an excellent source of income, but it also comes with a degree of risk. To mitigate this risk, it is crucial to have a proper lease agreement in place to protect yourself and your property.
Bothma shares a few tips:
What is a lease agreement?
A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of the rental arrangement. A well-drafted lease agreement should cover all aspects of the tenancy, including rent, security deposit, maintenance responsibilities, and tenant obligations. It should also provide a framework for resolving disputes and terminating the tenancy.
Why does a landlord need a watertight lease agreement?
Having a proper lease agreement is essential for landlords for several reasons. Firstly, it helps to establish a clear understanding between the landlord and the tenant about their respective rights and obligations. This can help to prevent misunderstandings or disputes that may arise during the tenancy.
Secondly, a lease agreement can protect the landlord’s property by setting out guidelines for maintenance and repairs. This can help to ensure that the property is maintained in good condition and that any damages caused by the tenant are addressed promptly.
Thirdly, a lease agreement can provide a framework for resolving disputes that may arise during the tenancy. This can help to minimise the risk of costly and time-consuming legal proceedings.
Fourthly, a lease agreement can help to protect the landlord’s financial interests by specifying the terms of rent payments, late fees, and security deposits. This can help to ensure that the landlord receives the rent on time and is adequately compensated for any damages or unpaid rent.
A sound lease agreement is essential
In summary, a well-drafted lease agreement is essential for landlords to protect themselves and their property. It provides a clear understanding of the terms and conditions of the arrangement, establishes guidelines for maintenance and repairs, provides a framework for resolving disputes, and protects the landlord’s financial interests.
Speak to a legal expert
As a landlord, it is important to seek the advice of a legal professional to ensure that your lease agreement complies with all relevant laws and regulations, and is tailored to your specific circumstances.
Our attorneys have considerable legal experience with all matters related to tenants, landlords, lease agreements and dispute resolution. Please contact our Conveyancing and Property Law or Litigation and Dispute Resolution team to assist with your issue.
* Disclaimer: The articles on these web pages are provided for general information purposes only. Whilst care has been taken to ensure accuracy, the content provided is not intended to stand alone as legal advice
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