Dealing with Rental Vacancies

There are all kinds of reasons why you may not have tenants to rent your property for a period of time. When you first buy a property, it may not be rented and could take a while to find tenants. You may not have the greatest location and it takes longer to rent. You may be trying to rent in the middle of the year when students already have housing. There may be an abundance of rental property in the area, or perhaps the condition of the property makes it difficult. Whatever the reason is, you need to fill you vacancies quickly or your property will become a much less profitable investment.
Every month that your place goes un-rented could means hundreds or thousands of Rands in lost revenue. But, there are definitely things you can do to improve your chances of limiting vacancies. First, if you do end up with a vacancy for a period, use the time wisely by making repairs and completing required maintenance to the property. Spruce up the place, paint the interior or schedule major repairs while the rental is empty. Later when you are showing the property to prospective tenants, they will give your property more thought because of the better condition. Also, it is a lot easier to make repairs in an empty property.
Be creative. If you know students will most likely be renting your property, rent your place when they are looking for housing in order to increase your chances of finding good tenants. This is typically in the beginning of the year. If you rent from February to January, consider renting for a shorter or longer period so that you can change your lease term to coincide with the time when students are looking.
Consider giving a discount or incentive to rent your property over another. Reduce rent for a short period, permit use of a garage or store room, offer to install a washer and dryer, or something else that tenants in your area may want. In addition to listing your property on this web site and others that cover your area, run ads in local papers, hang flyers and ask everyone you know. Hang a For Rent sign on the house so neighbors or people driving by will see it. Offer a reward to someone who finds you tenants. A small amount spent on advertising or discounts will more than offset the cost of lost rent for one or more months.
If you expect your tenants will not renew your lease, begin looking for new tenants early. Don't wait until the last minute and chance having a vacancy. Ask the existing tenants if they know of anyone that may be interested in renting your place. They may have friends who have already seen your rental that would be interested. Use every means possible to avoid having vacancies.
And ALWAYS DO THE BACK GROUND CHECKS

End of a long Week

Our first week of May 09 is finished,

We have had a very interesting week; we are still battling to get the true rent value for the Colosseum. We have had huge resistance from prospective tenant that we tell the rent is R3500 and they have friends the have unit for R2500.

We find this desperately frustrating as we are investors ourselves and have to repair and suffer the mistakes others. However life is not always plain sailing and it will go on no matter how much you complain.

So we have got creative and are approaching the building from a new point of view. We have been spending our time visiting the surrounding businesses (incl Standardbank and ABSA) to create exposure for the building and get local companies to see the value in their staff having quality accommodations so conveniently situated.

We are starting to see some pay off and it looks like things are going to start turning for the good.

In hard time you need to identify the problems that you are facing and then get busy with creative ways so solve them,

How to be a succesfull landlord

One key to being a successful landlord is taking the time to pick the best tenants and keeping the rental property maintained. If you do not have the time to keep up a property on your own, or if you own several rental properties, you can quickly become overwhelmed.
The tips provided



1. Always check references. Recurrent problem renters are usually quite accomplished at giving a good impression and can fool even the most jaded landlords. Always ask for references and take the time to follow up on them.


2. Get it in writing. In order to protect your interests and the interests of your tenants, get everything in writing. This means everything from a rental application to a code of conduct. If a tenant needs to have something fixed in their dwelling, ask them to provide the request in writing in addition to telling you on the phone or in person. This will help you with you income tax deductions and create a history for each tenant.



3. Provide a clean and secure residence. Keep the grounds of the property clean and free of debris. This will help you with property liability and keep your rental property looking its best. Depending on the location of the rental property, you may want to provide extra security measures. This can help keep your tenants safe and secure, and may even lower your insurance premiums.


4. Pick your managers carefully. If you do not have the time to personally manage your rental properties, you will need to hire a manager. But your success as a landlord will hinge on your choice. Make sure to hire the absolute best person for the job.


5. Get insured. Make sure that you have the maximum amount of rental insurance, property liability insurance, and any other type of insurance that may be required in your state. This can help protect you from devastating losses.


6. Make repairs promptly. Your tenants deserve to have decent living conditions. In the case of furnaces and other necessary appliances and fixtures, repairs simply cannot be put off. Try to imagine yourself in your renter's position. Could you live without running water for three days?


7. Respect the privacy of your tenants. Adhere to your state's guidelines for entry into a rented dwelling. Most states require at least a 24 hour notice before a tenant is required to allow their landlord to enter their rented dwelling.


8. Do not discriminate. Follow the Fair Housing Administration Act when you screen prospective tenants. A discrimination lawsuit is extremely costly and completely avoidable. Give everyone an equal chance to rent your property, regardless of their race, religion, or beliefs.


9. Have a well-drafted lease. It is imperative that the form of lease you use with tenants be well-drafted and pro-landlord-oriented. For a well-drafted form, check out the sample Residential Rental Agreement at the Forms & Agreements Center.


10. Always be fair. In addition to avoiding discrimination, strive to treat all of your tenants fairly. Try to understand their position and keep in mind how they may perceive your actions. While you may not be able to get along with everyone, having a good rapport with your tenants will reduce vacancy problems.

10 Questions to ask Property Maintance workers

When you are a landlord, there is always maintenance to be done. Whether it is a burst pipe or a broken washer-dryer, there are all manner of problems that can strike a rental dwelling. If you do not have the time or skill level to fix these problems, you will probably need to hire a professional.


But repeated calls to specialized workers, such as plumbers or electricians, will quickly devour your profit margin. If your rental property is having continual problems, you may want to hire a full- or part-time maintenance worker.
Before you begin your search, check with your current tenants. If one of them is qualified to perform the necessary maintenance, you may be able to work out a barter arrangement in which you trade work for rent-free accommodation. Over time, this can be a great way to save money on repair costs.
Whether you end up hiring a tenant or outsourcing the maintenance position, there are several things to be mindful of. Asking these 10 questions can help you find the most qualified person for your maintenance position ahead of time, saving you trouble and extra expense down the road.


1. Are they experienced? There is a big difference between fixing a leaky faucet and caring for a property. If you own a large apartment complex, the complexity and frequency of problems may be too much for the average handyperson. Before hiring anyone, make sure that they are completely capable of handling the most demanding tasks they may face.



2. What is their skill level? Can the worker handle a variety of problems? Are they qualified to work as an electrician, or do they have certain limitations?


3. Does their expertise match your problems? If you have a building with chronic plumbing problems, hiring someone who is more skilled at carpentry will not be very helpful. Try to find a jack of all trades rather than a master of one.


4. Where do they live? If your maintenance person does not live on site, how far away is their primary residence? If you find someone who is absolutely perfect for the job but lives too far away, you may want to consider providing them with housing either within your rental property or nearby.


5. Will they be full- or part-time? This will depend on the size of your property and the amount of problems you anticipate. If you have a large apartment complex, you may need to have a full-time maintenance person on the job. However, if you have only one or two rental houses, a part-time worker would be the economical choice.


6. What is their response time? This is very important if your worker does not live on site. Some problems just cannot wait until morning. For example, if you have a furnace go out in the middle of a very cold night, you will need to have this fixed as quickly as possible. If your maintenance person cannot get to your property in a timely fashion, you may need to find someone whose schedule will permit them to be on an on-call basis.


7. Can they provide references? Request both employer and character references. Have each applicant complete a written application so you can follow up on the references that they provide.


8. Are they ethical? An unethical maintenance worker can quickly drain your wallet and poison your reputation with your tenants. Ask the applicant's former or current employers about their work ethic and personality.


9. Can the applicant keep up with demand? If you have several properties, or if your properties are spread out over a wide area, one worker may not be enough. Take into account how often you may need them, and how far your properties are from their current location.


10. Are their rates reasonable? If you have infrequent problems with your rental properties, the added expense of hiring a maintenance worker may be more than you would pay for one-time jobs. This is something you will need to weigh before making your final decision.

Gautrain CBD

Gautrain enters Joburg with a bang

Some 350 kg of explosives was used in the demolition of a block of buildings in Braamfontein, Johannesburg, to make way for the construction of an underground parking area for the Gautrain rapid rail link at Park Station.

Great news for the CBD

This Artical from Eprop

Office decentralisation and perceptions of crime and grime has seen certain tenants relocating from Braamfontein to the decentralised nodes, but companies such as Liberty Life, Sappi, SafMarine and Rennies have committed to the area, and together with Government, are pumping vast amounts of capital into the area in the form of urban design initiatives and parking facilities. This is now seeing strong improvements to property market fundamentals and investment activity.

Marc SchneidereProp Research

The next arical was taken from business day

Pace Property Group MD David Green says the development of Bridgeview units prices range from R399000 to R1,2m, including VAT. The apartments are trendy and aimed at young professionals and executives.
Green says there is strong demand from buyers for space in Braamfontein. Government’s urban development zone tax-incentive scheme is paying dividends, with developers looking to extract the full benefit of the incentives. “Therefore, we anticipate rapid new development and improvement of inner-city real estate.”
The urban renewal tax incentives were announced by the treasury in October 2004. On offer is a 20% tax deduction from all income earned in the first five years after a building has been refurbished. For new developments, government is offering a tax deduction of 20% in the first year in which the building starts earning an income.
The Johannesburg urban development zone, for which the tax break is applicable, includes the central business district, Newtown and Braamfontein, as well as the high-density, high-rise residential areas of Hillbrow and Berea.
Other low-density residential areas surrounding the general Ellis Park area, such as Bertrams, Judith’s Paarl, Doornfontein and Troyeville, as well as Bellevue, Bellevue East and Yeoville, also form part of the approved urban development zone.

May Newsletter

Good morning Investors

We hope that you all enjoyed your holidays this last month

We have been involved with the launch of a fantastic new development called the Colosseum. It has been a bit of an uphill journey.

For those of you who have not invested in the building here is some background. The developer wants to keep standards of the building high and has implemented restrictions that do not permit just any letting agent into the building to rent out the apartments. We had to meet with the developer and issue company docs for approval.

This is a great idea and we are quite surprised that this is the first time that we see a system like this being implemented into a CBD block. There are plenty of sub-standard agents out there and we are sure that most of you have had the unfortunate experience of dealing with them.

This type of entrepreneurial thinking is what we need to really see our investments grow.

All our other buildings are doing well with nothing to report.

The only bad news that we have this month is that there was a fight at the Broadway Building, Friday night 30 April, the security did sort out the problem and there is a meeting with the body corporate, Security Company and the managing agent.
This sort of behavior can be avoided by implementing the right house rules. However we think that the Body Corporate of buildings in CBD should start enforcing that only approved managing agents are allowed to operate in their buildings.

Let’s hope that May is a trouble free month,