What to expect when hiring a rental management agency

You should be asked to sign a rental management agency agreement.

October 6, 2021

Boksburg Advertiser 2 minutes read

Pearl Scheltema, CEO of Fitzanne Estates. Photo: Supplied

Whether you’re an investor with numerous rental properties or a homeowner who wants to rent out your home while you’re abroad on a work contract, it may simplify the procedure by employing a professional rental management agency.

“The fees charged by such agents are often around 10% of the monthly rental, but seasoned landlords know the peace of mind that comes with having a professional handle the lease, manage the tenants and look after the property while you are away is well worth the money,” said Pearl Scheltema, CEO of Fitzanne Estates.

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Besides word-of-mouth recommendations, there are a few things to look for when screening potential rental management agencies and how to choose a rental management agency:

Formalise the agreement

After you’ve made your decision, you should be asked to sign a rental management agency agreement, also known as a letting mandate, which covers the agent’s right to let the property on your behalf and specifies how you want the property to be managed and paid your monthly rental.

“Make sure you read this document well before signing it and do not sign it if any portion is confusing or you do not agree with it,” advised Scheltema.

“Similarly, you should double-check the lease agreement your rental management agency will use to make sure it complies with the Rental Housing Act, the Consumer Protection Act and other relevant laws impacting landlords and tenants.”

If you want your rental management agency or tenant to follow any special or additional instructions, you must write them down, date them and attach them to the lease. Nobody wants to have a disagreement with their tenant or the rental management agency, but it’s always preferable to have things written down.

Let the professionals handle it

Once you’ve gone through this process and your agent understands exactly what you want to be done and what you expect from them, it’s time to unwind and let them do their thing.

“A professional rental management agency understands how to find suitable tenants and conduct background checks and credit checks,” said Scheltema.

“They’ll also make sure that a sufficient deposit is paid before handing over the keys, and they’ll act quickly and accurately if the rent isn’t paid on time or if repairs are required.