Above all, don’t skip on your rent payments.
The South African public, reeling from a triple knockout blows of VAT increases, fuel hikes and pending power price hikes, have to learn keep their wits about them to survive.
A realistic, understanding relationship between landlords and tenants is key to keeping a roof over your head for tenants — and securing rental income for landlords.
This is the view of Deon Botha CEO of South Africa’s leading rent collection agency RentMaster.
Deon’s practical and straightforward advice for landlords is “be realistic.”
“Everyone is feeling the pinch and you may find that you will struggle to find a tenant or meet with resistance from your tenant if you raise your rental by the percentage you normally do annually.
“So if you have a tenant who pays on time, be sure not to over-burden them with an unrealistic rental hike. If you have no choice but to increase the rental, see you can to absorb it in other ways — less frequent garden services or agree that the tenant maintains the swimming pool.
Deon’s advice for tenants is equally practical.
“Your credit record is king,” he says. “Whatever you do, don’t fall behind on your rent. This will show on your credit record putting you at a disadvantage every time you need credit. “And”, says Deon, “it could take years for you to clear your record.”
According to Deon, there are a number of ways to make sure that you can meet your rental obligations including renegotiating other monthly fees to free up cash.
“Security and insurance companies tend to increase their fees every year. Contact their competitors and see if you can get a better deal. You may find that your current service provider can suddenly magically sharpen their pencil in order to keep you as a customer. ”
Other ways to cut costs include drawing up a list of luxuries you spend money on that you don’t really need,”
Remember some of the best things in life are free — go for a walk in the park for entertainment, cut back on transport by starting or joining a lift club.
You may also want to cut electricity costs.
“Your geyser is the single biggest electricity consumer in most households, so consider having a quick shower instead of bathing — less hot water means less electricity,” says Deon.
“Above all, don’t skip on rent payments,” advises Deon. “The last thing you want is to lose the roof over your head — when with careful financial planning you don’t have to.”