Beware of bad tenant administration
I feel very strong about not getting involved with the letting and managing of your property, unless you have thorough experience of property management. If this part of property investment is not done properly, property investment can soon turn into a nightmare!
However, from experience I know some people will not follow my advice and for you, the stubborn ones who wish to bump their heads first, I think the following information will be useful.
Information that will be needed from the Tenant:
1. Full names
2. ID Number
3. Place of work
4. Work Street Address
5. Work telephone number
6. Cell phone number
7. Name and contact details of a family member
8. Name and contact details of close friend
9. Contact details of previous Letting Agency for reference
10. Tenant must supply a list of monthly expenses
11. Tenant must be credit checked via ITC
12. Full names and ages of all tenants who will be living in the property
13. Any pets
Copies of the following documents will be required:
1. Copy of ID
2. Latest 3 months payslips
3. Latest 3 months bank statements
Check for the following:
1. Tenant’s bank statements must be clear of any unpaids
2. Check the payslips to ensure that the tenant earns the same each month – if a tenant works on commission get 6 months bank statements to ascertain the average salary.
3. Compare the expenses to income to ensure that the tenant can afford the rental after paying all other expenses
4. The rental reference must be from a reputable Estate Agent and must be from the last place where they rented
5. Make sure on the amount of people that will be moving into the property.
Once you have signed a tenant never compromise on the date of the rental payment. Rental is due on or before the first of each month. (Tenants have this preconception that they have till the 7th of a month to pay rental, this is not true). There is no reason for a tenant to pay late.
The first time a tenant is allowed to pay rental late will be the beginning of endless problems.
Make sure the tenant pays a deposit. A one month deposit is standard, but a two month deposit is better!
My recommendation: Contact Tina Freimuth, my personal property manager, at email@example.com if you want a professional to take the hassle of working with tenants and letting agents off your shoulders.
Excerpt from the latest Treoc Times for Platinum members:
Edition 376 – 1 October 2012
FEARLESS MILLIONAIRE SERIES – Chapter 6
(Platinumlede kan die Afrikaanse weergawe op www.treoc.com lees)
How to use other people
I want to teach you how to make use of trusts so that you can effectively use other people’s money, time and skills.
Do you know anyone who knows everything? Do you know anyone who can do everything? Do you know anyone who possesses all the money in the world? No, someone like this certainly doesn’t exist, but all the knowledge and the money in the world does belong to people, and these people can do whatever they want with it. Can you imagine how much power is possessed by the people who have all these things at their disposal?
As I’ve already said, no single person possesses such endless knowledge, money and abilities. These things are possessed by a group, and this group is only powerful when they can share one another’s money, knowledge and abilities. Do you want to be part of this powerful group of people?
Bloemfontein – 11 Oct 2012
Gaborone – 18 Oct 2012
Pretoria – 24 Oct 2012
Cape Town – 31 Oct 2012
Port Elizabeth – 8 Nov 2012
Windhoek – 15 Nov 2012
Don’t miss the boat !
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