Whether you’re moving out from your parents into your very first home or you’ve been a homeowner for many years and have decided to sell up for whatever reason, renting your first property can be a daunting process and it’s important to get it right and avoid common pitfalls and potentially costly mistakes.
“From navigating rental agreements to understanding your rights and responsibilities as a tenant, there are several factors to consider to ensure a smooth and successful renting experience,” says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg.
“Before you even begin looking at properties, establish a budget that includes rent, utilities, and your living expenses and then only look at homes in your price range so as not to get tempted by properties you cannot afford, thereby wasting your time and potentially missing out on a great property you could have secured.
“The next important step is research, taking into consideration factors such as proximity to work and schools, public transportation, and local amenities when choosing a suburb. Also decide on what type of property would suit you best, based on your preferences and lifestyle.”
Once you have a better idea of what you can afford, where you want to live and what type of property would suit you best, it’s time to start searching and setting up appointments to view, however, in popular areas near schools and amenities, the competition for well-priced homes that tick all the right boxes can be stiff.
However, Odendaal says that there are a number of things prospective tenants can do to give themselves the edge when vying for a property that is attracting considerable attention:
- Be admin ready ahead of time – You will need three month’s bank statements, a certified copy of your ID, FICA documents (proof of address) and references from previous landlords where possible.
- Request the application form prior to viewing - and have it completed and with your documents ready to hand in on the day if you like the property after viewing.
- Have the necessary funds ready – Make sure that you have enough money available to pay the required deposit and, if applicable, the application fee. If there are two candidates of the same caliber, the one with his/her admin and funds at the ready will invariably get the property.
- Be mindful of your credit rating – If possible, do a prior check to ensure your credit score is clear. But also bear in mind that there are also other factors that can count against you, including having little or no credit because it’s then difficult to determine your credit payment pattern and reliability.
- Be on time – Make sure you arrive on time to view the property. Besides being rude and annoying, the agent is bound to wonder if you are as cavalier about paying your rent on time.
- Don’t initiate unnecessary lease changes - Most agency leases are standard and law compliant so don’t be difficult because the property will then go the applicant who is just happy to sign on the dotted line. If it’s complicated early on, a landlord may fear that a tenant is likely to become troublesome.
- Give your references a heads-up – The chances are that the agent will call your previous landlords and if they are not expecting to give a reference, they may well not answer a call from an unknown number or might assume it’s yet another unsolicited spam call and be very grumpy from the offset.
Odendaal says that being familiar with the rental regulations, especially regarding matters like moving in and out inspections, maintenance and deposits, can save you from having to fork out for additional expenses, as well as from unnecessary stress and delays.
Property inspections:
Thorough inspections when you move in and out are crucial because, the fact of the matter is that landlords and tenants often disagree on who is liable for repairs or damages to a rental property and the best way to resolve conflict and avoid the possibility of a costly legal battle is by having a thorough inspection report.
Deposits:
Legally tenants are entitled to earn interest on their deposits and the interest rate should be stipulated in the lease.
However, this is often not the case, especially with private landlords who are often unaware of this obligation and the lost interest can amount to a considerable sum, especially if a tenant stays in the property for a number of years.
Maintenance:
This is the most common source of disagreement between tenants and landlords, and this is therefore a clause that needs to be very clearly defined in the lease.
While landlords are responsible for the main structure of the home which includes the plumbing and electrical systems, they are not responsible for damages caused by wear and cannot be expected to send out a handyman to replace worn tap washers and light bulbs.
Lease renewal and rental increases
The CPA (Consumer Protection Act) effectively prohibits one from contracting out of contract. In other words, landlords cannot bind the tenant to a set percentage on the renewal of the contract in the body of the original contract. This means that escalations must be agreed at the time of each renewal.
Moving out:
This is the stage at which tenants often incur the most loss, especially if they are relying on the return of their deposits for their new accommodation.
If the ingoing inspection was done properly and all issues acknowledged and signed off by both parties, a tenant will be fully aware of the condition of the property when they moved in, so if they hand it back in the same condition at the end of their tenancy, there should be no problems.
If there is no damage to repair, the landlord has seven days or a calendar week in which to refund the deposit, however, when there are things to be fixed, the law allows the landlord 14 days to effect the refund.
And this is where vacating tenants often come unstuck because they assume it means that they must be refunded within 14 days of having vacated the premises whereas the landlord actually has 14 days FROM restoration of the property.
READ: Top tips for becoming the ideal tenant
There are certain qualities landlords should look for in prospective tenants to ensure that the rental property is well-maintained and financially secure. RE/MAX of Southern Africa shares some of the key tenant characteristics to look for:
A stable income is a steady job or other reliable sources of income, means that the prospective tenant is more likely to be able to consistently pay the rent on time. As a general rule of thumb, a prospective tenant’s income should be at least three times the monthly rent. This ensures that they will be able to comfortably pay their rent and meet all their other living expenses. A rental agent will also verify the tenant’s income to ensure that they have not falsified any information.
A good credit score is a strong indicator of financial responsibility and the tenant’s ability to manage debts and payments. A rental agent will do credit score checks on all rental applicants.
A positive rental history, including good references from previous landlords, tells you that an applicant is more likely to be a reliable and responsible tenant.
A history of prompt payments will show you that the tenant consistently pays rent in full and on time. Late or missed rent payments can have a significant knock-on effect on your cash flow and the property’s profitability, so it's essential to choose tenants who have an established history of paying rent on time.
Pride of place in their living and/or workspace. When interviewing tenants, try to find out about a bit more about their personality to see whether they are more likely to be the type who will properly maintain the property, following any rules outlined in the lease agreement regarding maintenance and repairs, as well as when, and what issues to report to the landlord.
Good communication from a tenant will help to prevent misunderstandings and ensures that any problems can be quickly and efficiently resolved, so landlords should also be on the lookout for this when meeting prospective tenants.
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