"We recently completed a pilot training phase and took the decision to provide clients with the Rentshield product on a choice-basis, if and when they feel it can add value to their buildings or circumstances," says Andrew Schaefer, MD at Trafalgar Property and Financial Services.
According to Schaefer, Rentshield does the application screening, as well as the in and out inspection on behalf of Trafalgar, performing some of the admin-related tasks and making it easier for Trafalgar to focus on the core day-to-day business of expanding its property portfolio.
Martin Goodman, Director of Rentshield, said: "We are proud to be associated with Trafalgar Properties and believe our product will offer peace of mind to landlords across the board, as it protects them in more instances than a traditional deposit would. The old-school idea of an upfront deposit is dated and landlords are increasingly starting to realise the security and peace of mind Rentshield can add."
This new product offered by Trafalgar takes care of many property investment risks associated with letting a property, including a loss of rental income for up to three month's rent. Should a tenant not pay on the due date, a slow payment solution is offered where the rent gets paid into the landlord's account within 48 hours of them submitting a claim.
It also covers the landlord's legal fees during the eviction process up to the value of R50 000 and ensures that all processes fall within the scope of the Consumer Protection Act. Other benefits include protection of up to one month's rental for unpaid utilities, any malicious damage to the property and absconding tenants.
Trafalgar actively started to present the option to clients as units became vacant, with some landlords showing immediate interest, while others remain more comfortable with the basic 10% increase. Schaefer believes there will be a slow incremental growth from a zero-base as vacancies are currently at historic lows, but said the uptake will be bigger on units that are a little harder to rent as the product could serve as the tipping-point towards filling the unit quicker or accessing a broader market segment for letting purposes.
Schaefer concluded: "Rentshield is a novel and unique offering with interesting value proposition features and we will watch with interest how this offering will be taken up by our clients and the value it will add to both parties."
