Page 8 - Business Sense-11.3 Rajesh Lutchman eBook

LANDLORD ADVANTAGES IN UNCERTAIN TIMES

Tyson Properties economy means that both
experienced and newcomer
n major centres like Cape landlords should guard against
Town, Johannesburg, Pretoria risk by working closely with
Iand the KwaZulu-Natal’s credible entities such as Tyson
North Coast, there’s a big move Properties that have substantial
towards rentals with more and experience when it comes to
more people choosing to be more up-to-date lease agreements,
flexible with their location by conducting thorough
renting. That opens the door for background credit checks on
investors to build up property
portfolios offering consistent renters and agents consistently
focusing on selecting both good
income and long-term returns,
according to Tyson Properties potential rental properties for
CEO, Chris Tyson. investors and matching them
with reliable tenants.
Not only does this open the
way for property investors but One of the biggest concerns
presents an opportunity for real for landlords is the risk of 5 Bedroom house in Constantia
estate agents to pivot and fill tenants defaulting and the need
the gap. To keep pace with the for eviction. However, Tyson
emerging rental class, Tyson Properties’ works with Eviction cushion during downturns. amenities. Adamo says the attract higher incomes over
Properties is making a concerted Secure to help protect landlords, Avoid over borrowing. Aim rentals with proximity to top shorter periods but are
effort to establish vibrant rental explains Dee Thomas, rentals for lower loan-to-value ratios schools, shopping, extremely seasonal. In
portfolios within their group. training manager and property that reduce the risk of interest restaurants, gyms and strong addition, larger numbers
practitioner at Tyson Properties
Although Statistics SA indicated Johannesburg. Developed by rate hikes. security are in high demand. using a property during
that, after a strong resurgence Matt Smit of Van Deventer & Van 3. Use an agency: Good vetting 6. Be open to opportunities: shorter times could mean
in the growth of rental income Deventer Incorporated, Eviction is vital and an agency is Economic uncertainty more expensive wear and tear.
during 2023 and 2024, increases Secure protects landlords from the perfect way to do this can deliver foreclosures and Instead, investors can benefit
are plateauing in 2025, the the costly legal fees that typically says Adamo: “Get them to do motivated buyers who have from longer term rentals
PayProp Annual Rental Index can exceed R30,000.* thorough credit and the liquidity to snap up as they are stable and
for 2024 suggests that increases background checks and a bargain. Don’t discount predictable. 
in rentals will remain above 10 DO AND DON’T S FOR a move in inspection report, renovating homes in good
inflation in 2025. LANDLORDS manage the property and even locations – often homes on For more information visit
www.tysonprop.co.za
However, lucrative rentals 1. Get the numbers right: Work deal with maintenance the market need no more than
a cosmetic upgrade.
and issue letters of demand
tend to be location specific closely with an experienced if a tenant is a late or non- *More About Eviction Secure
and Stephen Adamo, rental real estate agency to select payer. That outsources the 7. Match tenants and lifestyle:
manager for Cape Town’s a suitable property and emotional connection to According to Adamo, renting One of the biggest concerns for
Southern Suburbs, estimates then do your sums. The the tenant.” An agency will is the perfect way to adapt landlords is the risk of tenants
that the city’s market continues overall objective is to price also provide a lease agreement to changing lifestyle needs. defaulting and the subsequent
to grow year on year, with rental your rental competitively after that clearly outlines payment Make sure your investment need for eviction. However, Dee
escalations hovering between 8 researching the market and terms, maintenance duties, property meets general Thomas, rentals training manager
and 10% due to stock shortages area trends. Take into and rules. trends in a specific area - you and property practitioner at Tyson
and high demand. account bond repayments don’t want to try rent out a Properties Johannesburg, explains
and running costs and even 4. Aim low: “In the current one or two bedroom property that even this scenario is covered.
“In this region, you know that add a contingency to cover market, the numbers must in a family neighbourhood.
you will be purchasing in a very any potential maintenance. make sense. A buyer needs Luxury properties are also Eviction Secure, developed by
robust housing market. With the Factor in potential savings, to do a full due diligence rentable. Those looking to live Matt Smit of Van Deventer &Van
sheer demand in Cape Town, you including the new transfer before purchasing a property. in a R15 million plus property Deventer Incorporated, which
will always have access to the best threshold which enables When it comes to price points, might wish to save on bond has handled numerous evictions,

tenants. In most cases, landlords investors to purchase a you get an immediate return repayments of around protects landlords from the legal
have multiple offers for each property under R1.21-million on lower end properties in R150 000 and instead pay a costs associated with evicting a
property,” he says. without paying transfer duties. good locations,” says Adamo. rental of around R50 000 to defaulting tenant.
Head of rentals nationally and 2. Focus on cash flow: Prioritise 5. Focus on location: Good R100 000 to invest in other Eviction Secure is a membership-
Gauteng and KZN director, properties that generate quality tenants want to live avenues. based solution for property
Murray Haywood, says the consistent rental income, in the right neighbourhoods, 8. Maintenance makes sense: owners, providing peace of mind
volatility of the South African providing a potential financial especially when it comes to A landlord who is invested in to landlords and ensuring the
his property and has a good terms of the lease agreement are
track record of looking after upheld,” explains Dee.
it and doing repairs within Tyson Properties includes Eviction
a reasonable timeframe Secure as an added service, at no
always benefits. Adamo says cost to the landlord, as part of all
tenants are happy to settle for managed lease agreements. This
a well maintained older service covers the legal fees to
property. Regular upkeep obtain an eviction order which can
attracts and retains quality typically exceed R30,000.
and long term tenants. So, Landlords who choose a
conduct regular inspections Procurement Lease Agreement
and proactively ensure that all with Tyson, can also subscribe to
is well ahead of tenant alerts.
Eviction Secure at a cost of only
9. Consider Rental Insurance: R150 per month.
Protect yourself from
damages and loss of income.
10. Weigh up short term versus
long term lets: Each have
pros and cons says Adamo.
Short term rentals might
Fourways Gardens R31 400 pm x 12 months

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