How to Be a Better Landlord: Practical Rental Tips
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 12 | The Property Perspective with Etchells & Young
A good rental investment is not simply about charging the highest possible rent.
In Episode 12 of The Property Perspective on 919 FM, Harry turns the conversation towards landlords and shares practical advice on pricing, presentation, tenant screening, leases, maintenance and the importance of building a good long-term relationship with your tenant.
In This Episode
Harry looks at some of the decisions landlords can make to protect their investment while attracting and retaining good tenants.
Harry discusses:
Why overpricing can reduce your overall rental return
The importance of good presentation and professional photography
Why thorough tenant screening matters
What landlords should verify before approving a tenant
Why a properly drafted lease is essential
Setting realistic annual rental increases
The role maintenance plays in tenant retention
When professional rental management may be worthwhile
Watch Episode 12
The Property Perspective airs weekly on 919 FM.
Don't Overprice Your Rental
Charging more rent does not automatically mean earning a better return.
Harry explains that tenants know what comparable properties are being advertised for and will quickly recognise when a property is priced above the market.
A property sitting vacant for several months can have a far greater impact on a landlord's annual return than accepting a slightly lower but realistic monthly rental from the beginning.
Vacancy Can Be More Expensive Than a Lower Rental
Many of a landlord's expenses continue even when the property is empty.
Rates, levies, maintenance and other fixed costs do not disappear simply because there is no tenant paying rent.
Harry uses a simple example in the episode to show how several vacant months can dramatically reduce the actual return on an investment property.
Pricing correctly therefore becomes part of managing the property's overall financial performance.
Make Your Property Stand Out
Once the rental has been priced correctly, presentation becomes the next opportunity to attract a strong tenant.
Harry recommends good-quality, realistic property photography that presents the home well without misleading prospective tenants about its actual size or condition.
Small improvements can help too. Updated light fittings, a neat garden, fresh details and ongoing maintenance can all make a property feel better cared for without requiring a major renovation.
Never Skip Tenant Screening
Tenant screening is one of Harry's strongest recommendations for landlords.
Affordability should be properly checked rather than assumed. This may involve reviewing payslips and bank statements, verifying employment and speaking to previous landlords.
But Harry also recommends looking beyond income alone.
A tenancy is a business relationship, so the way an applicant communicates and conducts themselves can also provide useful insight into whether the relationship is likely to work well over the longer term.
Don't Rely on One Reference Alone
Previous landlord references can be useful, but they should form only one part of a wider screening process.
Harry cautions that a landlord who is desperate to get rid of a difficult tenant may not always provide the most reliable reference.
Employment verification, affordability checks, payment history and other supporting information should therefore be considered together when assessing an applicant.
Use a Proper Lease Agreement
A lease agreement protects a significant financial relationship.
Harry explains that the terms should be relevant, fair and compliant with the legislation governing residential rentals.
A landlord may never need to rely heavily on the lease if the tenancy runs smoothly, but if a serious dispute does arise, the quality of that agreement becomes extremely important.
This is therefore not an area where landlords should rely on an unsuitable generic document simply because it is convenient.
Keep Rental Increases Realistic
Harry also challenges the idea that a 10% annual rental increase should automatically be applied to every lease.
A good tenant who pays on time and looks after the property can be worth retaining, even if that means agreeing to a more moderate increase.
Losing a reliable tenant over an unrealistic increase may leave the landlord with vacancy, placement costs and the uncertainty of starting again with someone new.
Good Maintenance Protects More Than the Property
Maintenance is important both for protecting the asset and for keeping a good tenant.
Harry explains that landlords should attend to the repairs for which they are responsible rather than allowing small issues to remain unresolved.
A minor maintenance problem ignored today can become a much larger and more expensive repair later.
Prompt attention also shows a good tenant that the landlord values the relationship and takes the condition of the property seriously.
What Separates a Good Landlord From a Great One?
Communication.
Harry describes a successful tenancy as a long-term business relationship. Landlords who communicate professionally, respond reasonably and treat good tenants with respect are more likely to build stable rental relationships.
Not every issue needs to become a confrontation.
Where possible, clear communication and a practical approach can benefit both the tenant and the landlord over the life of the lease.
Should You Manage the Property Yourself?
Some experienced landlords successfully manage their own rental portfolios.
But Harry points out that residential rental management involves screening, lease administration, legislation, compliance, maintenance, rent collection and ongoing tenant communication.
If property management is not your full-time business, using a professional rental agent can remove much of that administration while ensuring that the tenancy is managed by people who deal with these issues every day.
A Key Takeaway
A successful landlord should focus on the long-term return, not simply the highest possible monthly rental.
Price the property correctly, present it well, screen tenants thoroughly, use a proper lease, maintain the property and value a reliable tenant once you have found one.
Those fundamentals can make the difference between simply owning a rental property and managing a successful property investment.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Looking for Professional Rental Management?
From pricing and marketing your property to tenant screening, lease administration, inspections, rent collection and ongoing management, Etchells & Young helps landlords manage their investment properties professionally.
Speak to our rental team about taking the day-to-day management of your property off your hands.
