Would you walk into an investment broker's office, hand over a million Rand and walk out again? It’s extremely unlikely, isn’t it? Strangely enough, very often this is exactly what happens when many landlords decide to let their properties to tenants. Unfortunately many landlords give little regard to choosing a good rental agent who is going to protect their properties or what a service like this should offer.
 
Logically, this is not a wise course of action. With laws protecting the rights of tenants, it is very important that the agency you appoint not only know their job, but actually does it properly. This is true for all landlords, but it becomes even more important for absentee landlords who do not live close to where their rental properties are situated.
 
It is vital for a landlord to choose an agent who has the ability to keep a firm eye on what is going on. Astute property investors know that assumptions are dangerous and do their homework to find the best agents to look after their expensive assets. One of the easiest ways to find a great agent is to ask around. Word of mouth is the best form of advertising and any agent that has earned a good reputation in a given area should be considered.
 
There are a number of questions that landlords should ask before utilising the services of an agent, including how the agency’s books are administered and what services they offer. As with any business, a rental agent is often only as good as the team that runs it. Maintenance is of particular importance to landlords who live far from their rental properties. Does the agency have the right maintenance people on board that can keep the property in a good condition and deal with emergency repairs as required?
 
Another aspect to consider before handing over the reins to an agency is whether they are registered with the Estate Agency Affairs Board and have valid fidelity fund certificates in place. This will allow you to claim against the fidelity fund if it should happen that the agent acted dishonestly with your money.

Making sure that the rent is collected on time and in full every month is probably the most important consideration for a landlord. The agent should have proven collection procedures in place if a tenant defaults on a rental payment. Find out how many late payers or rental defaulters are on the agency’s books. For example, being so closely associated with a law firm, we collect more than 99% of all rentals payable by tenants, which is much higher than the industry standard. A written mandate and rental management agreement covering all duties and obligations by the letting agent is obligatory.
 
For absentee landlords, having a reputable agent looking after the property is even more of a necessity. Coastal properties generally have more maintenance requirements than those in inland areas. Having an agent who regularly performs inspections on the home is a must. Holiday rentals are a completely different ball game and finding a trustworthy agent to oversee both the contents of the home as well as collecting the rentals is sure to keep holidaymakers coming back for more. This will benefit you tremendously over the long run.
 
Just remember, you get what you pay for with rental agents. It is not a good idea to choose a rental agent purely because they are cheaper than the rest. A good agency is effectively worth its weight in gold and will probably end up saving you money at the end of the day.
 
If you want peace of mind when letting your property, speak to us today. We will show you how we will take care of your property and your income. We have many happy landlord clients who already entrust their properties into our care. Make sure you choose right.

For more information, have a look at our blog.

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