Some of the main issues laid out in the Renters’ Act revolves around the maintenance of a property. According to this Act, landlords should maintain the property while tenants are responsible for taking care of the property and paying the rent.
Other duties of the landlord are to make the property available to tenants on the agreed date and to hand over the property to tenants in an agreed condition. A landlord is not allowed to disturb a tenant’s use and enjoyment of the property and may under no circumstance enter the property or remove things without a tenant’s permission.
It is the duty of the landlord to make sure that everything (plumbing, electricity) is in working order. A tenant should check the lease carefully to make sure that it states that the landlord is responsible for maintaining the property for the duration of the lease.
Tenants should always try to solve problems with landlords in a friendly manner before taking legal steps. If this does not work, tenants should write a letter to the landlord setting out the problem. Tenants should send this letter via registered post and give the landlord a certain number of days to sort out the problem.
The duties of a tenant include paying the rent in full and on time in the manner agreed upon. Tenants should take care of the landlord’s property thus leaving it in the same order and condition as what they received it in.
Depending on the circumstances, tenants are entitled to cancel the contract or lease, demand repairs, claim a reduction in rent and sue the landlord for damages.
A landlord needs to apply for a court order before a tenant can be evicted.
Buy holiday apartments for sale in Knysna
Wednesday, January 21, 2009
Sunday, January 18, 2009
10 Tips for Buy-to-Let Investors
When you buy with the idea to rent out the property you stand a chance of earning a profit while paying your off your bond. Buying-to-rent is very popular amongst investors but should be considered carefully. Here are some tips to guide you through the process of buying-to-let:
1. Do In-Depth Research
It is important to know what you are letting yourself in for. If this is the first time you are buying to let make sure to seek advice from an expert or other buy-to-let investors. In tough economic times it might be easier to find tenants but when the property market is booming you might struggle to avoid you property sitting empty. Make sure you enter the market at the right time.
2. Choose a Good Area
A good area does not necessarily mean the most expensive or upmarket suburb, but rather an area that shows potential. If you are buying-to-rent with students accommodation in mind, make sure the area is close to campus or within easy access of public transport.
3. Consider All Areas – near of far from your home
Buying-to-rent does not always mean you have to live close by. There might be better offers further away from your residence that could be a wiser investment. There are lots of ways to keep ahead of what’s going on at your rental property.
4. Shop Around
You don’t always have to use the same bank for all your mortgages. Seek advice from a specialist buy-to-rent broker and remember you are under no obligations to use a broker once you have asked for information. Considering all options might save you a lot of money.
5. Negotiate the Price
As with first time buyers, you are not reliant on selling a property to buy another and hence hold a smaller risk. Remember this when negotiating for a better price.
6. Consider the Negative Side to Buying-to-Let
As stated before, rental demand is often dependant on the economical times. You have to be prepared for a slower rental market and all the challenges that come with renting out property. Factor in that your property might sit empty for at least 2 months of the year – thus leaving yourself a buffer.
7. Don’t be Over Ambitious
Because there is no such thing as a 100% sound investment there will always be risk involved. It is important to consider everything before you jump in. Talk to financial advisors and seek advice from friends and family whom you trust.
8. Follow the 12% Rule
An easy way to work out an achievable rental price is to divide the purchase price by 100. This will give you a rental figure that needs to be obtained to achieve 12% gross income. This does not apply to all property but will give you a good estimate.
9. Don’t Spend Too Much on Renovation/Refurbishment
If you are a first time buy-to-rent investors you should take on a property that needs little of no renovation. This will only cause unnecessary stress. Rather decorate the interior with neutral colours that offer a blank canvas to potential tenants.
10. Find the Right Tenant
This is one of the most import steps when buying-to-rent. Make sure to advertise in the right places to attract the ideal candidate. Always screen potential tenants and try to find out as much as possible about them. Ensure a good relationship with tenants, as they will be living in your property. Make sure you have the funds to pay for a letting agent should you need one. Seek legal advice when drawing up a rental contract.
Buy Knysna Property
1. Do In-Depth Research
It is important to know what you are letting yourself in for. If this is the first time you are buying to let make sure to seek advice from an expert or other buy-to-let investors. In tough economic times it might be easier to find tenants but when the property market is booming you might struggle to avoid you property sitting empty. Make sure you enter the market at the right time.
2. Choose a Good Area
A good area does not necessarily mean the most expensive or upmarket suburb, but rather an area that shows potential. If you are buying-to-rent with students accommodation in mind, make sure the area is close to campus or within easy access of public transport.
3. Consider All Areas – near of far from your home
Buying-to-rent does not always mean you have to live close by. There might be better offers further away from your residence that could be a wiser investment. There are lots of ways to keep ahead of what’s going on at your rental property.
4. Shop Around
You don’t always have to use the same bank for all your mortgages. Seek advice from a specialist buy-to-rent broker and remember you are under no obligations to use a broker once you have asked for information. Considering all options might save you a lot of money.
5. Negotiate the Price
As with first time buyers, you are not reliant on selling a property to buy another and hence hold a smaller risk. Remember this when negotiating for a better price.
6. Consider the Negative Side to Buying-to-Let
As stated before, rental demand is often dependant on the economical times. You have to be prepared for a slower rental market and all the challenges that come with renting out property. Factor in that your property might sit empty for at least 2 months of the year – thus leaving yourself a buffer.
7. Don’t be Over Ambitious
Because there is no such thing as a 100% sound investment there will always be risk involved. It is important to consider everything before you jump in. Talk to financial advisors and seek advice from friends and family whom you trust.
8. Follow the 12% Rule
An easy way to work out an achievable rental price is to divide the purchase price by 100. This will give you a rental figure that needs to be obtained to achieve 12% gross income. This does not apply to all property but will give you a good estimate.
9. Don’t Spend Too Much on Renovation/Refurbishment
If you are a first time buy-to-rent investors you should take on a property that needs little of no renovation. This will only cause unnecessary stress. Rather decorate the interior with neutral colours that offer a blank canvas to potential tenants.
10. Find the Right Tenant
This is one of the most import steps when buying-to-rent. Make sure to advertise in the right places to attract the ideal candidate. Always screen potential tenants and try to find out as much as possible about them. Ensure a good relationship with tenants, as they will be living in your property. Make sure you have the funds to pay for a letting agent should you need one. Seek legal advice when drawing up a rental contract.
Buy Knysna Property
Thursday, January 8, 2009
Thesen Islands Wins Prestigious Award
Allbusiness.com reports that the CNBC International Property Development Award Organizations honored The Thesen Islands Development Company with 2 awards including Best Marina Development and Best Redevelopment (Multi Units) for the Dry Mill Marina Apartment development.
This stunning marina development is situated in the popular town of Knysna on the Garden Route. The 550 residential units and 56 Dry Mill apartments are stylishly decorated and fully equipped with luxuries and comfort including private jetties. The apartments are uniquely designed using parts of an old mill structure.
The CNBC International Property Development Awards are held annually and looks for quality of design, construction and presentation of individual properties and property development, interiors, architecture and marketing. The awards were held at the Marriott Grosvenor Square in London on the 15th of September 2007.
Buy property on Thesen Islands
This stunning marina development is situated in the popular town of Knysna on the Garden Route. The 550 residential units and 56 Dry Mill apartments are stylishly decorated and fully equipped with luxuries and comfort including private jetties. The apartments are uniquely designed using parts of an old mill structure.
The CNBC International Property Development Awards are held annually and looks for quality of design, construction and presentation of individual properties and property development, interiors, architecture and marketing. The awards were held at the Marriott Grosvenor Square in London on the 15th of September 2007.
Buy property on Thesen Islands
Thursday, December 18, 2008
Building or Buying a New Home: Pros and Cons
Property buyers are often confronted with the big question: Should I buy or should I build a home? Financially it is often cheaper to buy a new home than to built. There are however many pros and cons when building or buying a new property.
When buying a new home you can physically investigate and ascertain the quality and style of the property. Previously owned homes usually have an established garden and you can often trust that what you see is what you get. There are also no delays and moving in can happen as soon as the paperwork has been finalised.
Buying a home also has its downside: You are forced to buy what you sometimes don’t want, there could be unforeseen problems and you might have to spend money to upgrade the house.
When building, you don’t have to live with other people’s style; you have the freedom to plan and design what you want. This offers you a lot of control and you can make sure that all is new and in good conditions. When building you can also adjust your costs when you see that you budget is shrinking too fast. By the end of the project you will have the satisfaction of knowing that you have achieved your goal, along with the feeling that you are the first owner of the house.
But building a new house is not without its problems. You can never be a 100% certain of quality and workmanship and finding the right area to buy land could be time-consuming and costly. You have to keep in mind that you will need to make more decisions and that you will have to establish a new garden. It is also important to remember that it is sometimes hard to visualize the final product and you could be in for a huge disappointment.
Invest in property in Knysna
When buying a new home you can physically investigate and ascertain the quality and style of the property. Previously owned homes usually have an established garden and you can often trust that what you see is what you get. There are also no delays and moving in can happen as soon as the paperwork has been finalised.
Buying a home also has its downside: You are forced to buy what you sometimes don’t want, there could be unforeseen problems and you might have to spend money to upgrade the house.
When building, you don’t have to live with other people’s style; you have the freedom to plan and design what you want. This offers you a lot of control and you can make sure that all is new and in good conditions. When building you can also adjust your costs when you see that you budget is shrinking too fast. By the end of the project you will have the satisfaction of knowing that you have achieved your goal, along with the feeling that you are the first owner of the house.
But building a new house is not without its problems. You can never be a 100% certain of quality and workmanship and finding the right area to buy land could be time-consuming and costly. You have to keep in mind that you will need to make more decisions and that you will have to establish a new garden. It is also important to remember that it is sometimes hard to visualize the final product and you could be in for a huge disappointment.
Invest in property in Knysna
Tuesday, December 9, 2008
Tips on Buying Repossessed Property on Auction
Repossessed property is making up around 20% of all properties for sale in the UK and things are not much different in South Africa. Banks and lenders are often more interested selling than getting a good price for the property, which means you can walk away with a huge bargain.
If you are planning on buying a property at auction be well prepared and make sure you know exactly what is involved. Here are a few tips on buying property at auctions:
Do Proper Research
Make sure to be clear on why you are buying the property. If you are buying to rent, you have to research the rental market in the area. Don’t be tempted to buy in an area you don’t know, or do thorough research if you don’t know the area well.
Do a Test Run
Attend a couple of auctions and familiarize yourself with the process. Get some catalogues to see how different bidders go about bidding. This will give you some confidence when you bid on your first auction.
View the Property
Checking out the brochure/catalogue is not enough; visit the property and make sure to take a builder or someone with knowledge with you. Also make sure you know exactly how much the property is worth.
Sort Out a Survey
Even though you will lose you survey fees if your bid is not successful, it is still important to make sure you know exactly what you are buying into. Don’t cut corners here; it might be a costly mistake!
Decide on a Maximum Bid and Stick to It
Know your budget and make sure that you don’t get influence by bidders pushing the price higher – this might leave you financially overstretched.
Arrange Your Finances Before the Auction
If your bid is successful, you are legally bound to purchase the property. Therefore you have to make sure that you will have you finances ready within 20 days after the auction.
Have Your Deposit Ready
You will need to put down a deposit for 10% of the property’s price, should your bid be successful. Remember to take you check book and at least two forms of identification with your to the auction.
Be Prepared for Other Costs
Remember that you will need to pay legal – , renovation -, running - and insurance costs. There may also be a buyer’s fee to pay at the auction house. You can check this on the day at the auction.
Find Out About Tax
Remember to factor in tax on your rental income if you are buying to let. There might also be other taxes involved so make sure to check it out before you bid on the property.
Make Sure the Auction is On
One the morning of the auction, phone to make sure that the property you are interested in are still up for auction and has not been sold privately. Also read the terms and conditions that are handed out at the auction.
If you are planning on buying a property at auction be well prepared and make sure you know exactly what is involved. Here are a few tips on buying property at auctions:
Do Proper Research
Make sure to be clear on why you are buying the property. If you are buying to rent, you have to research the rental market in the area. Don’t be tempted to buy in an area you don’t know, or do thorough research if you don’t know the area well.
Do a Test Run
Attend a couple of auctions and familiarize yourself with the process. Get some catalogues to see how different bidders go about bidding. This will give you some confidence when you bid on your first auction.
View the Property
Checking out the brochure/catalogue is not enough; visit the property and make sure to take a builder or someone with knowledge with you. Also make sure you know exactly how much the property is worth.
Sort Out a Survey
Even though you will lose you survey fees if your bid is not successful, it is still important to make sure you know exactly what you are buying into. Don’t cut corners here; it might be a costly mistake!
Decide on a Maximum Bid and Stick to It
Know your budget and make sure that you don’t get influence by bidders pushing the price higher – this might leave you financially overstretched.
Arrange Your Finances Before the Auction
If your bid is successful, you are legally bound to purchase the property. Therefore you have to make sure that you will have you finances ready within 20 days after the auction.
Have Your Deposit Ready
You will need to put down a deposit for 10% of the property’s price, should your bid be successful. Remember to take you check book and at least two forms of identification with your to the auction.
Be Prepared for Other Costs
Remember that you will need to pay legal – , renovation -, running - and insurance costs. There may also be a buyer’s fee to pay at the auction house. You can check this on the day at the auction.
Find Out About Tax
Remember to factor in tax on your rental income if you are buying to let. There might also be other taxes involved so make sure to check it out before you bid on the property.
Make Sure the Auction is On
One the morning of the auction, phone to make sure that the property you are interested in are still up for auction and has not been sold privately. Also read the terms and conditions that are handed out at the auction.
Thursday, December 4, 2008
Choosing a Good Tenant
Choosing the right tenant is probably one of the most important things that a landlord must do. This is mainly because it is very hard to get rid of a bad tenant and it is often quite costly. See the process of selecting a tenant as a business decision and always make sure that your tenant meets certain standards.
Firstly, lets look at some characteristics of a good tenant:
§ A good tenant pays the rent on time. This means that your tenant must have a regular source of income and a history of prompt and complete rental payments.
§ A good tenant has good references from former landlords.
§ A good tenant does not engage in illegal activities and abide by the terms of the tendency.
It is important to make sure that you tenant has these characteristics and don’t settle for anything less. If your friends suggest a tenant be sure to check out all references and don’t take anyone’s word for it. Do all enquiries yourself.
Here are some tips for choosing the right tenant:
§ Make sure your ad reaches a large audience. This way you will have a wide choice of potential tenants.
§ Make sure to draw up a complete application form with space for present and former landlords’ names and phone numbers and a complete history of previous addresses.
§ Make sure to check all references and ask what the reason was for the termination of the contract.
§ Look for gaps in the applicant’s rental history or for a pattern of many tenancies of short duration
§ Always run a credit check on your top two applicants.
§ When you have selected a tenant make sure that all paperwork is in order and that you both sign the lease. Take time to explain all clauses to your tenant to make sure that there is no misunderstanding.
§ If you are using a property manager make sure it is someone who will use proper care and procedures during the selection process.
Buy property on the Garden Route
Firstly, lets look at some characteristics of a good tenant:
§ A good tenant pays the rent on time. This means that your tenant must have a regular source of income and a history of prompt and complete rental payments.
§ A good tenant has good references from former landlords.
§ A good tenant does not engage in illegal activities and abide by the terms of the tendency.
It is important to make sure that you tenant has these characteristics and don’t settle for anything less. If your friends suggest a tenant be sure to check out all references and don’t take anyone’s word for it. Do all enquiries yourself.
Here are some tips for choosing the right tenant:
§ Make sure your ad reaches a large audience. This way you will have a wide choice of potential tenants.
§ Make sure to draw up a complete application form with space for present and former landlords’ names and phone numbers and a complete history of previous addresses.
§ Make sure to check all references and ask what the reason was for the termination of the contract.
§ Look for gaps in the applicant’s rental history or for a pattern of many tenancies of short duration
§ Always run a credit check on your top two applicants.
§ When you have selected a tenant make sure that all paperwork is in order and that you both sign the lease. Take time to explain all clauses to your tenant to make sure that there is no misunderstanding.
§ If you are using a property manager make sure it is someone who will use proper care and procedures during the selection process.
Buy property on the Garden Route
Tuesday, November 25, 2008
Why You Need an Estate Agent
The information in this article is courtesy of Realestateweb (Big reasons not to sell your own home – 26 November 2008)
Private property sales are becoming more and more popular as homeowners try to save on commissions. According to Lanice Steward, managing director of Anne Porter Knight Frank estate agency, her experience in the industry has shown that these private sales can be disastrous.
Steward pointed out that there is a misperception of the role of the estate agent in some cases. This stems from ignorance of what the agent does and a lack of appreciation of what he or she can bring to the negotiation and sales process. This, according to Stewart, is somewhat surprising seeing that people don’t try to diagnose their own ailments, and they certainly don’t try to service their own cars, buy yet they think that they are qualified to market and sell their biggest assets.
The biggest mistake made by DIY home sellers is often made while investigating prices in their region. Show houses are almost always overpriced and when sellers use that price as a guideline they often overprice (or sometimes under-price) their own property.
DIY sellers often find that the advertising cost is higher than they bargain for and that possible buyers pray on their inexperience and downgrade their price by pointing out drawbacks and defects. When a serious buyer do come around the sellers often lack the legal and negotiating skills to get a good deal.
When using a trained agent these issues are often totally excluded from the selling process; the seller benefits from the agency’s large-volume advertising and the agent will have a potential buyers list, which is a good start. A professional agent will recognise the pitfalls and traps to avoid in the all-important negotiation process and all other deed related issues would be handled with precision.
Steward thinks it is important for all homeowners to note that, although an agent’s commissions might sometimes be high, the reality is that paying an agent will almost always get you a sooner and better deal.
Buy property in Knysna
Private property sales are becoming more and more popular as homeowners try to save on commissions. According to Lanice Steward, managing director of Anne Porter Knight Frank estate agency, her experience in the industry has shown that these private sales can be disastrous.
Steward pointed out that there is a misperception of the role of the estate agent in some cases. This stems from ignorance of what the agent does and a lack of appreciation of what he or she can bring to the negotiation and sales process. This, according to Stewart, is somewhat surprising seeing that people don’t try to diagnose their own ailments, and they certainly don’t try to service their own cars, buy yet they think that they are qualified to market and sell their biggest assets.
The biggest mistake made by DIY home sellers is often made while investigating prices in their region. Show houses are almost always overpriced and when sellers use that price as a guideline they often overprice (or sometimes under-price) their own property.
DIY sellers often find that the advertising cost is higher than they bargain for and that possible buyers pray on their inexperience and downgrade their price by pointing out drawbacks and defects. When a serious buyer do come around the sellers often lack the legal and negotiating skills to get a good deal.
When using a trained agent these issues are often totally excluded from the selling process; the seller benefits from the agency’s large-volume advertising and the agent will have a potential buyers list, which is a good start. A professional agent will recognise the pitfalls and traps to avoid in the all-important negotiation process and all other deed related issues would be handled with precision.
Steward thinks it is important for all homeowners to note that, although an agent’s commissions might sometimes be high, the reality is that paying an agent will almost always get you a sooner and better deal.
Buy property in Knysna
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