One of the expenses most often overlooked and not budgeted for is maintenance, which not only affects the monthly rental that owners can achieve but also the property’s value in the long-term.
This is according to Lorraine Dellbridge, a rentals manager for Lew Geffen Sotheby’s International Realty. “Landlords should afford their properties the same level of diligence as they would their vehicles, but many baulk at all but the most essential repairs which can prove very costly in the long term, if not sooner.
“Maintenance and repairs are not only for the benefit of the tenant, but are crucial to prevent problems from escalating and resulting in expensive outlays in the future. It also protects an owner’s investment and ensures they will realise maximum returns when they decide to sell the property."
“Commonly ignored problems we see that have the potential to escalate include plumbing, guttering and drainage issues, which are usually minor initially but can often end up costing a small fortune.” The best way for landlords to avoid being caught on the back foot is to save a portion of the rental income each month so that they build up a maintenance fund and therefore have the money on hand when needed.
Arnold Maritz, southern suburbs co-principal for Lew Geffen Sothebys International Realty, says it is also critical for owners to take out the best insurance policy they can afford and to take the time to research which company offers the most comprehensive coverage.
“Emergency repairs like burst geysers are not uncommon and can wreak havoc on one’s cash flow as they require an immediate outlay of up to R10,000, which few people have to spare.”
“Landlords who have never lived in the properties they are letting are often unaware of potential issues that may require a watchful eye and this ignorance is easily exacerbated when they have long-term tenants who pay their rent on time and only ever communicate with the owners about major problems.
“Is it therefore advisable for landlords or their appointed agent to check on the properties a least once a year to see what maintenance needs to be done. They cannot just assume that the tenant is doing their part in the upkeep of their property or that they will notify the owner about potential problems as they arise.”
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says that it is essential that both the tenant and landlord have a clear understanding about who is responsible for which repairs and this should be fully covered in the lease document.
Geffen adds that landlords must also bear in mind that the tenant is a key factor in the upkeep of their investment and that their impact is two-fold. “The better the tenants take care of a home and the more a landlord keeps tabs on their property, the less maintenance there will be. Landlords should work with their tenants, as happy lessees are more likely to look after the home.
Dellbridge says that these days it is advisable to use an experienced agent who not only has a thorough knowledge of the area, but also because the current Rental Housing Act has changed considerably in recent years and most tenants are now far more aware of their rights.
“Even if landlords prefer to handle their own rental properties, they should always seek the advice of an expert when drawing up the lease to ensure it is compliant with the rental legislation and that the lease covers all their responsibilities as well as those of the tenant."
