Carefully select rental investments for the best outcomes
Category Rentals
It is crucial to recognise that not every property is suitable for the rental market. If your intention is to invest in a property for rental purposes, wise investment choices backed by thorough research are essential to avoid potential disappointment, according to the Seeff Property Group.
Distinguishing between a residence for personal use and one designated for rental is vital. Personal homes often feature custom finishes and fittings unsuitable for rentals, failing to enhance rental value. It is advisable to remove such elements, particularly if they hold sentimental value.
Generally, tenants prefer unfurnished properties, especially for residential use. Clearing and storing personal furniture is recommended, as tenants require exclusive use of the property, disallowing personal belongings or furniture storage within the unit or home.
Each neighbourhood has distinct criteria regarding popular rental properties and their corresponding price ranges. Collaborating with a local rental agent to assess your property and establish appropriate pricing guidelines is crucial. Setting a rental price too high may limit the potential tenant pool, making it beneficial to align with suburb averages.
Prior to listing a property as available for rent, it must be fit for the purpose, well-maintained, and thoroughly cleaned. All necessary maintenance and repairs should be completed, ensuring everything is fully functional. Security features are now important for rental properties.
Beyond the monthly rent, tenants typically bear additional costs like basic utility usage (water, electricity, refuse removal). Property taxes and sectional title levies are the landlord's responsibility.
Tenant deposits should be placed in an interest-bearing account for the benefit of the tenant. Establishing a maintenance fund for emergencies, separate from the deposit, is advisable. The landlord may not use any part of the deposit for routine maintenance and repairs.
To keep the property well maintained, it might be beneficial for the landlord to hire a service provider for garden and pool care, with the associated costs potentially integrated into the monthly rent. Periodic inspections by the landlord are necessary to verify proper tenant care.
Seeff emphasises the importance of thorough tenant vetting, ensuring a responsible tenant safeguards the property as a valuable asset. Engaging a local Seeff rental agent can significantly enhance this process.
Entering into a comprehensive lease agreement with the tenant, covering all legal aspects, is recommended. Following proper procedures, including formal incoming and outgoing inspections, ensures a documented agreement on the property's condition.
Author: Gina Meintjes
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