The rental market at present is very low in stock in general. When I say Rental market I am referring to the Southern Suburbs specifically.
Numerous tenants are looking for homes for themselves and their families and we are experiencing a huge inflow of interest once a home is listed on all the various marketing portals. So much so that after 24 hours we need to cancel the listing to process the interest already received.
The market we are dealing with at Chas Everitt is more in the range of R 15 000 per month upwards and these properties are usually wanted by families migrating into the Cape. As there is such high demand, Chas Everitt can try and source the best tenant to suit the property as the number of applications exceeds expectations. So the agency can in essence then pick the Pick of “The Crop” for our Landlords.
With the rising costs, we have not yet felt any effect regarding arrears on our books, but this is mainly due to the systems we have in place. Our credit vetting which is done through TPN ( The tenant Profile Network ) is very stringent, we ask for everything “bar DNA samples”. TPN also allows for accessing various credit bureaus and past rental behaviour regarding payment. We ensure that the Landlord see’s all the information received from our tenants who apply, as ultimately it is the Landlords investment. They need to be able to approve their choice based on the information provided. All applications are however handled in a strictly private and confidential manner. Agencies also need to remember once we approve a tenant, we have effectively afforded the tenant a credit option being the monthly rental payment they will be paying should have been vetted by the agency correctly. It’s our responsibility to ensure we don’t allow prospective tenants to over indebt themselves with a very high rental they simply won’t be able to sustain
Far more needs to be applied to the service as a letting agent and Letting agency division. The lease agreement needs to be updated and must comply with CPA and the Rental Housing Act. Constant training needs to be done with the agents to ensure that they are kept up to date and to discuss various scenarios to assist in letting a home. The mandate to the Landlord must include a comprehensive explanation as to what the agency does for their client so that there are is confusion. Deposits and who holds them and at what interest rate is a critical part of this process. The value of the property for rent must be accurate and in line with the surrounding areas and process. That being said rental process are been over-inflated due to the high demand. This can prove to be a huge risk, as the applicant who does apply puts themself in a high-risk situation in paying more than what they originally budgeted.
In closing, I can say that we need more property stock, a good clean stock which means well-maintained properties to offer to our tenants as there is a huge shortage.
