TENANT ‘RED FLAGS' AND HOW TO AVOID THEM

The wrong tenant can have a lasting negative effect

- GRANT SMEE

THE RESIDENTIAL property industry continues its upward trajectory, and investors are getting in on the action. However, with the rise of investors choosing to take advantage of low prices and invest in ‘buy-to-let’ properties comes an excess supply of rental properties in areas with high supply and low demand.

Residential rental vacancies in Gauteng are currently sitting at a high rate of 11.9%, while the Western Cape is sitting at a slightly lower 11.4% vacancy rate, according to TPN’s 2021 Q4 data.

Although landlords may be getting desperate, industry experts advise you to think twice before signing on the first tenant who comes your way. Placing a tenant in your vacant property might help curb your losses in the short-term, but putting the wrong tenant in can have a lasting negative effect.

Contrary to popular belief, the law protects both the landlord and the tenant’s rights—and both parties are strongly urged to do their due diligence prior to signing a lease agreement.

In terms of obligations, those of the tenant include the requirement to pay rent promptly, to take care of the property, and to return the property in the same condition in which it was received.

Landlords, on the other hand, are required to provide the tenant with access to a safe home in good working order. They are also required to maintain the exterior of the building, and to protect the tenant’s deposit.

While some properties are enjoying an influx of rental applications, others are desperately seeking tenants—both of which are at risk. Receiving a rental application is a big relief for a landlord, so much so that they often overlook a number of red flags.