Rental agents vs private landlords

MANY first-time buy-to-let investors spend a great deal of time considering whether a rental agent is the best option for managing their property, or if they could successfully handle the letting of their investment on their own.

While there are pros and cons to both options, Jacqui Savage, national business development manager for Rawson Rentals, explains that the benefits of using an experienced and trustworthy rental agent will, for the majority of landlords, far outweigh the self-managed alternative.

According to Jacqui managing a property yourself is not only extremely time-consuming but also requires a great deal of knowledge of laws and regulations put in place by the Rental Housing Tribunal. “South African law tends to lean to the side of protecting the tenant, not the landlord, and if your contracts and communications with the tenant don’t fall 100 percent within the rules from day one, you can quickly find yourself on the wrong end of an expensive dispute,” she said.

As a private individual, it can be much more difficult not only drafting a solid lease agreement to protect everyone involved, but also performing the necessary background checks to distinguish between good and bad tenants. “Credit checks, for example, are absolutely vital, but can be difficult to action as a landlord in your personal capacity. High-risk tenants are often aware of this fact, and are not above taking advantage of it when they can,” she added.

According to Jacqui by using a reputable rental agent, investors can have access not only to their tried and tested lease agreements, but also their stringent background checks, processes and hard-earned experience that dramatically reduces the likelihood of signing a delinquent tenant.

“Trust and reliability is the biggest concern we see from landlords who are considering using a rental agent to manage their property. Handing over responsibility for one of your largest assets is understandably daunting, and you can imagine why landlords might be nervous about trusting a stranger with something that important,” she said.

All rental agents are legally required to have an annually updated Fidelity Fund Certificate (FFC) in order to trade and must be registered with the Estate Agency Affairs Board (EAAB). “If your rental agent can’t provide proof of both, walk away and find one who can,” Jacqui advises.

The COURIER invites tenants and landlords to share their opinions, thoughts and experiences around this issue by commenting on the website or sending an e-mail to jamesm@caxton.co.za