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There are a few basics you can do to increase both the value and yield of your investment, for example; replace the outdated light fittings; place a couple of mirrors, add some storage – this can all up the value of your rental.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

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