KEEP IT CLEAN

If your property is clean, tidy and has a reasonable standard of decoration it will be more attractive to good quality tenants and easier to achieve a good level of rent. Think carefully about whether you would want to live there or not. Ask HUSBAND & Co. for advice or recommendations on any odd jobs etc that might make the property more appealing.

TO FURNISH OR NOT TO FURNISH?

Property can be let fully furnished, part furnished or unfurnished. Which of these is appropriate will depend on the type of property and the local market conditions. HUSBAND & Co. will be able to give you advice on whether to furnish or not and to what level. As a minimum you will need to provide decent quality carpets, curtains and light fittings. Remember, you need to accept that there will be wear and tear on the property and any items provided. Do not leave items which are irreplaceable or have personal sentimental value.

DO I NEED TO TELL ANYONE THAT I AM LETTING THE PROPERTY?

If you have a mortgage bond or loan on the property you must inform your lender in advance of any letting and, in some cases, get their consent. If you do not do this you may breach your mortgage bond conditions with potentially serious consequences. If your property is sectional title you may need the consent of the trustees of the body corporate. Keep copies of any such consent's obtained safe, as you may need to provide them later.

WHAT ABOUT INSURANCE?

You must inform your insurance company of any proposed letting as your cover and or premiums may be affected. Failure to tell your insurers might mean they refuse to pay any subsequent claim. You will need to ensure that your policy covers you for third party/ public liability so that you are covered for claims against you following accidents etc due to defects at your property. You might want to consider one of the various specialist insurance products for landlords, which could include protection against rent arrears, or for legal expenses if you have to take legal action against your tenant.

HOW DO I KNOW I AM GETTING A GOOD TENANT?

Usually, in today's fast moving marketplace, HUSBAND & Co. will check out the information provided by the individual prospective tenant on an application form by making use of a specialist referencing company. These companies include financial and other checks in their assessment of a tenant's suitability and ability to pay. HUSBAND & Co. will also check with the previous landlord as to the prospective tenants ability to perform.

INVENTORY

A suitably detailed Inventory or Schedule of Condition for the property its contents is absolutely essential. HUSBAND & Co. will prepare this on your behalf. The inventory should be provided to the ingoing tenants on the commencement date of their tenancy. Ideally the tenants should check, sign and return a copy of the Inventory to confirm their agreement with it. Without a good inventory a landlord is, legally, in a very vulnerable position if he subsequently tries to deduct money from a tenants deposit for alleged damages.

Don't forget, when changing tenants you will need to provide an updated inventory to the new set of tenants.

SAFETY MATTERS

As a landlord you have a legal obligation to provide a safe property for the tenants to live in. Specifically, this means that any electrical equipment provided, plugs, sockets etc must be safe. You should also ensure that all equipment is serviced regularly and provide instructions or user manuals so tenants know how to safely operate appliances and equipment. HUSBAND & Co. will be able to explain more details and help make arrangements for the appropriate tests to be carried out.

MAINTENANCE AND REPAIRS

As the owner and landlord you will generally be responsible for maintaining and or repairing the fabric or structure of the property. Your agent from HUSBAND & Co. will be able to explain your specific legal obligations in more detail.

HOW DO I RECEIVE MY RENTAL INCOME?

You will need to agree with your letting agent the anticipated timescale for the rent to be paid on to you after the tenant has paid it to the agent. There are a number of factors that influence this and you should discuss these with your agent so there is an understanding on both sides. Make sure your agent is a member of a reputable organisation such as ARLA who have a mandatory and comprehensive client money protection (Bonding) scheme for its member firms; requiring them to adhere to specific rules relating to dealing with clients money and submit to audits by external accountants.

DO I HAVE TO PAY TAX ON RENTAL INCOME?

Yes, No, maybe! This will depend on each landlord's individual finances and circumstances. Rent earned on property does, however, count as income and should be declared to the South African Revenue Service (SARS) on your tax return although you can offset certain expenditure against the gross rental income. If in doubts seek professional advice from an accountant. It is not uncommon for letting agents to be required by SARS to submit details, via an annual return, of their landlords and the properties they have let.

INFORMATION FOR TENANTS

It's good practice to leave a folder of information at the property for tenants. This might include:

• details of rubbish collection days, nearest schools, shops.
• photocopies of any manuals/ instructions for appliances
• location of fuse boxes/ meters/ stopcock
• useful and emergency contact numbers (plumber, handyman, electrician etc.)