Maximise your rental returns with the right rental agent
Category Newsletter: Article
While it is easy enough to invest in a buy-to-let property, getting the right tenants into your home and ensuring that you receive the monthly rentals while your property is being looking after is an important aspect.
A rental property investment is not a passive investment, it requires a hands-on approach and this is where a skilled and experienced rental agent can make a massive difference. The world of property rentals have become a lot more complex with new legislation such as the CPA (The Consumer Protection Act 68 of 2008).
Once your property is occupied by a tenant, you will want to ensure that it is a credit and trustworthy tenant who will look after your property as if it is their own. Working with a credible rental agent means that both the property owner and tenant can have peace of mind because rental agents have to comply with the same strict legislative and compliance criteria as estate agents.
It is therefore critical that prospective property owners and tenants alike do their homework and ensure that they are in fact dealing with a credible and registered agent. This can be done by checking with the Estate Agency Affairs Board (EAAB). Property fraud is on the rise, especially as a lot of property adverts and correspondence take place in the online space, it is very easy to get caught out by an unscrupulous operator or a fraudster.
Here are a few things that rental agents can do to help you maximise your rental returns. The services offered vary depending on what you would select, but here are some of the services on offer:
Rental price – it is important that you set your rental price at the right level for the respective area and market to ensure that you actually attract the right tenants. There is no point setting your rental so high that you never find a tenant. You also do not want to make it financially difficult for tenants to maintain their monthly payment. A steady income flow is much better than a property standing empty.
Marketing – quality photographs and a top class description that aims to attract maximum attention is just part of what a rental agent will do for you. In addition, the agent will manage all of the enquiries which can be very cumbersome to deal with especially if you have other interests that are keeping you busy.
Viewings – the next important aspect that a rental agent will manage for you, is the viewing of the property. Again, this can involve quite a bit of liaison and administration in addition to actually having to be present at the property to take prospective tenants on a guided tour of the home. Afterwards, there is usually also quite a bit of follow-up before you actually get to the point of securing an interested tenant or tenants.
Vetting – the next important step is to vet all potential tenants to ensure that they are financially able to afford the monthly rental and also that they have a good history of making their payments on time. This process may also involve doing a reference check with previous landlords for additional peace of mind.
Rental collections – vitally, your agent will ensure that the necessary rental deposit (2-3 months being the norm these days) is paid timeously and will then manage and collect the month-to-month rental amounts. Any additional utility bills that need to be paid, will also be managed by the agent.
Property management – the agent can also manage your property for you and this will include regular inspections as well as all essential maintenance to ensure that the property remains in tip top shape to continue accumulating value for you. This service can also include the incoming and outgoing inspections and all necessary repairs.
Author: Coastal Property Group
