How to go about letting your property:
When renting your property you, as the owner, have the choice between managing the property yourself or employing an estate agency to manage the property for you. Letting (renting) a property requires compliance with many legal obligations in terms of the Rental Housing Act and the help of an estate agency can reduce risks and will avoid unnecessary stress and anxiety.
If you decide to let the property privately, keep in mind that a private rental agreement requires considerable effort and there are some hidden pitfalls you should be aware of. When renting out your property you first need to decide how much rent you want to charge. Unless your property is rent-controlled (which very few are nowadays), you are free to charge any rent you wish. However, you need to be realistic and charge a rent that a tenant is willing to pay. This is usually influenced by the rents being charged for other properties in the neighbourhood, and by the condition and features of the property. Your second step will be to find a tenant. The best way is to advertise in the newspaper and/or the Internet. Alternatively you can display a “to let” sign outside your property. If someone wants to rent your property, you are advised to do a credit reference and ask for proof of the applicant’s income.
However, if you decide to use the services of an estate agency, the incumbent will have the following obligations:
- advise you on a market-related rental for your property;
- show and advertise your property;
- receive offers from prospective tenants;
- check their credit records and other references;
- present the applications to you for a decision;
- draw up a lease contract between yourself and the successful applicant;
- inspect the property with the tenant prior to the tenant moving in;
- collect the tenant’s deposit and keep it in an interest-bearing trust account;
- receive the rent each month, and pay it over to you;
- handle all complaints and inspect the property regularly to ensure that the property is being maintained.
If you use an estate agency, you will have to pay commission for the services rendered. There is no fixed commission rate in South Africa and commission is therefore negotiable. You are free to “shop around” for the best price, but make sure that you get the service and support you want.
Disputes
If there is a dispute between a tenant and a landlord, either or both of them can refer it to the Rental Housing Tribunal for the province in which the property is situated. The tribunal has the power to take evidence, hold hearings, make decisions, and issue orders. Contact the provincial government for details.
Please note: We have compiled this information in good faith, but we accept no liability for any errors, or for any use that is made of it, or for any problems or damage that may arise as a result of using or acting upon this information.