With over 180 franchises, the Rawson Property Group’s 88 rental franchises, now active throughout South Africa, face a major challenge – to increase the stock they handle and manage in line with their management’s growth expectations. This was said recently by Wayne Albutt, National Manager of the fast growing Rawson Rentals franchise division.
Like many other estate agency divisions, he said, Rawson Rentals are finding that the ongoing demand for rental stock has created severe shortages. It has also, he said, led to a satisfactory rise in rentals and a revival of buy-to-let investors.
“In these conditions,” he told certain of his Cape rental franchisees recently, “what will count most in your favour is an ability to attract new landlords – and to achieve this you will have to accept that ‘educating’ the landlord is an essential part of your task.”
Landlords, said Albutt, want the best possible returns; they want to be paid on time every time; and they do not want to be faced with unexpected problems. To achieve these goals, landlords have, with the help of the agent, to clarify in their own minds whether theirs is to be a short, long or medium term investment. Certain areas, he said, are ideal for investment now; others have great future potential – and some are clearly on the downward path. With the help of his agent, the landlord needs to decide which areas and in which price range he will invest.
Then, too, said Albutt, the landlord must be taught at the onset to make his property ideal for renting.
“Fundamentally,” he said, “this entails making the property ‘bullet-proof’ – as hard wearing as possible. Avoid buying cheap, short life equipment. Paint with quality washable paint that will not need replacing in under five years. Install top-of-the-range low voltage lights. Tile with hard wearing porcelain tiles, even if they are more expensive, and avoid carpets which deteriorate rapidly. Fit state-of-the-art security systems and ensure that all electrics, gutters, down pipes and plumbing are in full working order at all times.”
It should be remembered, said Albutt, that the cost of all improvements on a buy-to-let property are tax deductible. Attempts to save there, he said, show a short-sighted attitude which should never be condoned by the agent.
“Part of the agent-educating-the-landlord-process,” said Albutt, “should also be to persuade him to set aside 8% of his rents each year for maintenance and upgrades. For two, three or more years the sum raised may not have to be spent – but the money should always be there and should be available should it be needed.”
Landlords, added Albutt, should accept that their relationship with their agent should be close, in many cases almost “cherished”. This being the case, they must find agents they like – and agents must take care to be likeable, service-minded and sympathetic.
“If the landlord/agent relationship is not good,” said Albutt, “all too often it will result ultimately in lease problems.”
Although there are many excellent independent agents operating in the market, in general, added Albutt, it pays to appoint an agent who is a member of a reputable established group with a good track record – and the agent himself, said Albutt, should be made to prove that his own track record is good before he is mandated.
Landlords will inevitably come to rely heavily on their agents, said Albutt. However they should make themselves wholly familiar with property law and with the lease the tenant has signed – and they must at all times insist that these are applied rigorously.
For this reason, said Albutt, it is unwise for a landlord to become friendly with his tenant – the relationship should be left in the hands of the agent so that if and when breaches to the lease occur, e.g. when it becomes necessary to demand a late rental payment, the agreement will be applied at once and without favour.
“The agent has to be instructed to stick to the letter of the law and the contract obligations as set out in the lease.”
Good agents, added Albutt, will visit and inspect the landlord’s premises regularly, often as much as once a month. A tenant who neglects or abuses the leased property can then be kept in line. However, he said, good agents seldom have serious tenant problems because of their level of professionalism in all matters and this will ensure that they avoid the usual mistakes.
Like many other estate agency divisions, he said, Rawson Rentals are finding that the ongoing demand for rental stock has created severe shortages. It has also, he said, led to a satisfactory rise in rentals and a revival of buy-to-let investors.
“In these conditions,” he told certain of his Cape rental franchisees recently, “what will count most in your favour is an ability to attract new landlords – and to achieve this you will have to accept that ‘educating’ the landlord is an essential part of your task.”
Landlords, said Albutt, want the best possible returns; they want to be paid on time every time; and they do not want to be faced with unexpected problems. To achieve these goals, landlords have, with the help of the agent, to clarify in their own minds whether theirs is to be a short, long or medium term investment. Certain areas, he said, are ideal for investment now; others have great future potential – and some are clearly on the downward path. With the help of his agent, the landlord needs to decide which areas and in which price range he will invest.
Then, too, said Albutt, the landlord must be taught at the onset to make his property ideal for renting.
“Fundamentally,” he said, “this entails making the property ‘bullet-proof’ – as hard wearing as possible. Avoid buying cheap, short life equipment. Paint with quality washable paint that will not need replacing in under five years. Install top-of-the-range low voltage lights. Tile with hard wearing porcelain tiles, even if they are more expensive, and avoid carpets which deteriorate rapidly. Fit state-of-the-art security systems and ensure that all electrics, gutters, down pipes and plumbing are in full working order at all times.”
It should be remembered, said Albutt, that the cost of all improvements on a buy-to-let property are tax deductible. Attempts to save there, he said, show a short-sighted attitude which should never be condoned by the agent.
“Part of the agent-educating-the-landlord-process,” said Albutt, “should also be to persuade him to set aside 8% of his rents each year for maintenance and upgrades. For two, three or more years the sum raised may not have to be spent – but the money should always be there and should be available should it be needed.”
Landlords, added Albutt, should accept that their relationship with their agent should be close, in many cases almost “cherished”. This being the case, they must find agents they like – and agents must take care to be likeable, service-minded and sympathetic.
“If the landlord/agent relationship is not good,” said Albutt, “all too often it will result ultimately in lease problems.”
Although there are many excellent independent agents operating in the market, in general, added Albutt, it pays to appoint an agent who is a member of a reputable established group with a good track record – and the agent himself, said Albutt, should be made to prove that his own track record is good before he is mandated.
Landlords will inevitably come to rely heavily on their agents, said Albutt. However they should make themselves wholly familiar with property law and with the lease the tenant has signed – and they must at all times insist that these are applied rigorously.
For this reason, said Albutt, it is unwise for a landlord to become friendly with his tenant – the relationship should be left in the hands of the agent so that if and when breaches to the lease occur, e.g. when it becomes necessary to demand a late rental payment, the agreement will be applied at once and without favour.
“The agent has to be instructed to stick to the letter of the law and the contract obligations as set out in the lease.”
Good agents, added Albutt, will visit and inspect the landlord’s premises regularly, often as much as once a month. A tenant who neglects or abuses the leased property can then be kept in line. However, he said, good agents seldom have serious tenant problems because of their level of professionalism in all matters and this will ensure that they avoid the usual mistakes.
