Howzit there! Jacques Pretorius from Matzikama Properties here, giving you the straight talk on what to watch out for as a landlord. Here are the common mistakes that can cost you a lot of Rands, plain and simple:
- Not checking tenants properly: Don't just rent to anyone! Make sure you do proper checks on their background, credit, and past rentals. Problem tenants can cause big headaches with unpaid rent and damages. Using a rental agent can help with this.
- Forgetting about maintenance costs: Things break! You need to put money aside for repairs and general upkeep. Ignoring small issues makes them bigger (and more expensive) later on. Aim to save about 1-2% of the property's value each year for this.
- Not knowing the law: Rental rules are serious business. You need to know your rights and responsibilities to avoid getting into legal trouble with things like leases and evictions. Stay updated on the latest laws, like the Rental Housing Amendment Act.
- Pricing rent wrong: Charging too much means your place stays empty. Charging too little means you lose money. Do your homework and see what similar places are going for in the area. Local rental agents can give you good advice here.
- Having a bad lease agreement: A simple, unclear lease can lead to fights about who's responsible for what. Get a detailed, legal lease that covers everything, including things like pets and late payment fees. Make sure you also include a property condition report.
- Trying to do everything yourself: If you have multiple properties or live far away, managing them yourself can become a nightmare. A good rental agent can take a lot of stress off your shoulders and handle things professionally.
- Not planning for empty periods: Rentals don't always have tenants. You need to have some savings to cover costs when the property is vacant so you don't run into cash flow problems.
Remember, being a landlord is more than just owning a property. It's about managing things properly to protect your investment and keep your tenants happy. The Rental Housing Tribunal is there to help sort out disagreements between landlords and tenants if things go wrong.
