Nadia Marais, Owner Namar Properties

4 Essential Tips For Rental Property Owners 

Buying an investment property can help increase your wealth and secure your financial future, just as long as you maximise your rental income. 

Vacant properties should have a rental property appraisal from a local property expert, this person can also ensure that a suitable tenant is found with ontime rental payments to help cover the costs of your investment

Namar Properties real estate property managers are not only well trained but are themselves rental property owners so can really help you with getting an accurate valuation of your rental house, flat, student accommodation or commercial property.

For properties that already have occupying tenants it is essential to ensure that your current rent is in line with market rates and if you are using a property management company that can offer you a level of service that meets your requirements.

Here are 4 essential recommendations on how to get the right value for your rental property from our property management experts here at Namar.

#1 Rental Property Value Myth Busting

You may have heard from some property investors or from friends or family that you should be able to achieve R100 returned per week for every R100,000 invested in buying a property. This may work in some places for some properties but on the whole you should treat it as a myth

The property rental market in your area will have many different factors to determine a reasonable rental value and these may not always be the same as an investors’ expectations. This means it’s vital to do your own research into rental property returns and seriously consider a professional opinion.

“For properties that already have occupying tenants it is essential to ensure that your current rent is in line with market rates and if you are using a property management company that can offer you a level of service that meets your requirements.…”

#2 Comparing Similar Rental Properties

An online search is always a good place to start looking for similar properties as yours that are available to rent in the same area. 

Once you have found some that will make a good comparison attend open viewings of these properties. This is a great way to see the real value of a property and to ask questions from the property manager or landlord to get a better insight into other competing properties. If you are looking for a property manager you can evaluate them at the viewing and get a good idea if they are right for you and can meet your needs as a landlord.

# 3 Get Your Rental Property Appraised By A Professional

Once you have a good understanding of the realistic rental price you can ask for your property you should start getting rental property appraisals. You may have met potential agents at a viewing that impressed you with how they managed the property you saw, this is a good place to start.

A good tip is to make first contact through the property management company’s website or by email. Doing this will show you how quickly they will respond and their level of service to landlord and tenant enquiries which will matter if you sign a property management agreement with them.

#4  Ask Lots Of Questions

You may decide to get more than one appraisal of your rental property and they may all differ in their appraisal methods and outcomes. Therefore it is unsurprising that it is sometimes confusing to choose the right partner to work with. This is when you should go back and ask questions on what it is that isn’t clear to you, an expert company should be completely transparent and provide easy to understand answers.

 Three questions you should ask if they were not covered in the appraisal are:

• Which methods were used to make the appraisal?
• Do they have evidence of the number of potential tenants that are on their database interested in properties like yours?
• How will they take your property to market and what is their strategy to ensure that you get the right rental price for your property?

 After using these recommendations you will be in a good position to decide on what to charge for your rental property and which partner you feel confident that can manage your property for you. 

Namar Properties have been helping Port Elizabeth rental property owners maximise their return on their investment for over 10 years. All of our rental property experts are themselves rental property owners and are in a great position to help you.

 List your property for an appraisal here or speak to one of our rental property experts here

Nadia Marais, Owner Namar Properties

Fortune favours the brave. Investments are always accompanied by a sidekick called RISK. Although the word does not necessarily have a positive connotation, it can have a positive impact as risk becomes the driver and motivator to conquer! 

We have identified two of the biggest risk factors in the current South African market, namely: 

1) Vacancy = No rental income

2) Defaulting tenants = Non-payment of rent. 

Odds are you can’t directly control our economy, the financial well-being of your tenant or the supply of new property into the rental market. However, you can control the competitiveness of your rental in terms of the amount you charge, how appealing your property is to tenants in your market and how you treat your tenants. 

Preventing your rental from standing vacant is quite achievable. Gain a firm grip on knowing the ins and outs of your market, suburb and complex in relation to what competitive current rentals charge as well as the rental increases and demand. It’s important to set realistic goals for your rental. 

Make your rental a desirable one, specifically more desirable than the neighbour! Run through every square meter and honestly evaluate if you would live there, cook there, host small get-togethers, and more.

“Odds are you can’t directly control our economy, the financial well-being of your tenant or the supply of new property into the rental market. However, you can control the competitiveness of your rental in terms…”

A proactive approach and a bit of initiative go a long way. We often come across houses in Port Elizabeth that feature the most stunning hard wood flooring, yet it’s covered by a few decades old, shabby, dusty carpet. Please, lift that carpet! 

There are a few basics you can do to increase both the value and yield of your investment, for example; replace the outdated light fittings; place a couple of mirrors, add some storage – this can all up the value of your rental. Even a simple interior and exterior paint job has immense power to uplift a rental. Keep in mind, owning a rental and time to time upgrades are intrinsic to one another – especially when the market is tough! 

If you’ve hooked a good tenant look after them with everything. If they pay their rent on- time and look after your property return the favour, with interest! Be extremely responsive to all forms of communication, be considerate to requests and reasonable with renewals and rental increases. Know your responsibility with maintenance and ensure it’s up to date. 

There are a few ways to safeguard against non-payment of rent. Before allowing tenants to take occupation or to sign the lease agreement, screen them properly. Verify their employment and income to ensure they can afford the rent. If possible, contact their previous landlord. While being fair and reasonable when dealing with requests, be vigilant for scam artists. 

Monitor your tenants paying behaviour and be quick to respond and rectify if need be. If your tenant stops paying, be quick in seeking proper legal advice. 

We at Namar Properties are experts in placing tenants and specialize in managing rental properties. If you’re seeking help or assistance with your property, contact us today by filling in your details here