Renting out a property

[Pieter1]

Howzit guys and girls.

 

We are going to put up our house for rent. The estate agent can find tenants do credit checks etc. She takes one month rent as a fee but then she is out of the picture.

Would it be better doing it through an agency and let them handle everything? I don't really want to get involved emotionally with the tenants so I suppose an agency would be best?

What agencies should I be looking at?

 

Thanks for the advice.

[Long Wheel Base]

Just check what happens if or when the tenant renews the lease. May be another months rent. If you happy to pay the months rent then it's not a bad option as they will do the showing and make plans with the possible tenants to view. I don't make use of agents, been messed around too many times. If you want to do your own credit checks you can do it with TPN. A pretty decent check costs less then R200.

[Long Wheel Base]

Just check what the popular local agencies are in your area. Chat to the agents that do the rentals and make sure you like them.

[Long Wheel Base]

What area are you in?

[Long Wheel Base]

Some rental agents also charge the tenant a fee. So they get your months rent as well as a fee from the new tenant. They also get your deposit paid to them and they then forward it to you.

[Pieter1]

Some rental agents also charge the tenant a fee. So they get your months rent as well as a fee from the new tenant. They also get your deposit paid to them and they then forward it to you.

Ah okay. I’ll ask around a bit. We are in Northcliff JHB.

[Captain Fastbastard Mayhem]

Ciuple questions, first

 

Do you want to manage the property yourself?

Do you want to vet the applicants?

Do you want to have to deal with bad payments etc?

 

If yes to all, then do it all yourself. 

 

If yes to all but q2, let them do it. 

 

If no to 2 or all, let a proper rental agent handle the property as the management agent. 

 

 

IMO. 

 

I think the average take is 10% of rental, but IMO that's peanuts for the work that they do in terms of vetting applicants, getting the leases in place and acting as a buffer for you, so you don't have to deal with the tenants yourself. From a renter's perspective, it's pretty much the same thing at the end of the day, but dealing with an agent makes things a lot simpler at times, and a bit more difficult in others. 

 

Either way, it needs to suit YOU. Some people are on it when it comes to rentals, and can manage it themselves without a hassle. If you've got a day job, and don't have time to manage it and find tenants etc, then go with an agent that will manage it for you. If you have a day job and can manage it yourself, but don't want to go through the hassle of finding a tenant, then your option sounds more or less okay.

 

BUT. One months' rent equates to about 8.3% of the monthly rent, which, if they're not managing the property, seems quite excessive to me. 

Edited October 28, 2020 by Captain Fastbastard Mayhem

[Pieter1]

Ciuple questions, first

 

Do you want to manage the property yourself?

Do you want to vet the applicants?

Do you want to have to deal with bad payments etc?

 

If yes to all, then do it all yourself.

 

If yes to all but q2, let them do it.

 

If no to 2 or all, let a proper rental agent handle the property as the management agent.

 

 

IMO.

 

I think the average take is 10% of rental, but IMO that's peanuts for the work that they do in terms of vetting applicants, getting the leases in place and acting as a buffer for you, so you don't have to deal with the tenants yourself. From a renter's perspective, it's pretty much the same thing at the end of the day, but dealing with an agent makes things a lot simpler at times, and a bit more difficult in others.

 

Either way, it needs to suit YOU. Some people are on it when it comes to rentals, and can manage it themselves without a hassle. If you've got a day job, and don't have time to manage it and find tenants etc, then go with an agent that will manage it for you. If you have a day job and can manage it yourself, but don't want to go through the hassle of finding a tenant, then your option sounds more or less okay.

 

BUT. One months' rent equates to about 8.3% of the monthly rent, which, if they're not managing the property, seems quite excessive to me.

Ja my answer is no to all of those. I really don’t want to have to fight and what what. Also we will be overseas for like another 5 years so doing it myself will be difficult. I’ll happily pay the 10%.

[Captain Fastbastard Mayhem]

Ja my answer is no to all of those. I really don’t want to have to fight and what what. Also we will be overseas for like another 5 years so doing it myself will be difficult. I’ll happily pay the 10%.

Well, you have your answer. Rental agent that is happy to be a managing agent, too. Luckily there are tonnes of those around. Remax / Pam / Rawsons etc. Find a branch / agent / admin person who ticks your boxes. It's not just the agent you have to get a feel for, as the tenants will mostly be dealing with the admin assistants once the contracts etc are signed, and agents DGAF about post-sale management. 

[Skylark]

Ask around on your local neighborhood FB or WhatsApp group on reliable rental agents, some take your money and that's about all they do..

Also the good ones will offer various insurance options to cover property damage, if the property can't be leased again they will pay up to 3 months rent etc, if you need a consistent income from the property then that can be a lifesaver.

Edited October 28, 2020 by Skylark