Rental growth hits highest level since 2017
Category Property News
Rental growth hits highest level since 2017
Real estate professionals optimistic about the future of the rental industry
PayProp's head of data analytics says that for the first time since before the COVID-19 pandemic, residential rental growth is approaching the rate of consumer price inflation. Interest rates may now have reached their peak following the South Africa Reserve Bank's decision to hold them steady last month, and this places the rental industry on the brink of its first real-term gains in some time.
The importance of having a decent lease agreement
Tips for Landlords:
The key tenant characteristics to look for:
A stable income is a steady job or other reliable sources of income, means that the prospective tenant is more likely to be able to consistently pay the rent on time. As a general rule of thumb, a prospective tenant's income should be at least three times the monthly rent. This ensures that they will be able to comfortably pay their rent and meet all their other living expenses.
A good credit score is a strong indicator of financial responsibility and the tenant's ability to manage debts and payments. A rental agent will do credit score checks on all rental applicants.
A positive rental history, including good references from previous landlords, tells you that an applicant is more likely to be a reliable and responsible tenant.
A history of prompt payments will show you that the tenant consistently pays rent in full and on time. Late or missed rent payments can have a significant knock-on effect on your cash flow and the property's profitability, so it's essential to choose tenants who have an established history of paying rent on time.
Pride of place in their living and/or workspace. When interviewing tenants, try to find out about a bit more about their personality to see whether they are more likely to be the type who will properly maintain the property, following any rules outlined in the lease agreement regarding maintenance and repairs, as well as when, and what issues to report to the landlord.
Author Property 24
Published 24 Aug 2023 / Views -
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