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Landlords, you need to put in some effort if you expect good tenants – here are 3 things you can do right now

Accepting pets is a good way to make your property stand out to tenants. Photo: Mart Production/Pexels

Accepting pets is a good way to make your property stand out to tenants. Photo: Mart Production/Pexels

Published May 3, 2022

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The property rental market may be swinging in favour of landlords, but this does not mean that tenants will be desperate enough to take just any property.

Landlords will need to still put in some work – and possibly some financial investment, if they wish to attract good quality tenants.

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Here are three things you can do to make your property stand out and attract good tenants:

1. Aim for the ‘sweet spot’ when setting your rent

With supply still outstripping demand, and affordability an ongoing issue for cash-strapped South Africans, competitive rental rates are essential, says Jacqui Savage, national rentals manager for the Rawson Property Group. However, cheaper is not always better.

“In fact, there’s a very definite sweet spot in terms of rental brackets that has both high demand and an excellent tenant payment behaviour record.”

TPN’s Credit Bureau’s Residential Rental Monitor reveals that, in the last three months of 2021, the best performing rental segment was the R7 000 to R12 000 per month category, with 87.29% of tenants in "good standing“. This rental band also delivered the lowest ”did not pay“ number at 4.2%.

“Tenants paying monthly rent of between R12 000 and R25 000 were the second-best performers (and) this sector of the rental market had the lowest vacancy rate of all rental bands at just 10.23%,” the report says.

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The “below R4 500” rental band, however, continued to struggle to break through the 80% “good standing” mark, while the number of tenants renting in the “below R3 000” category “are struggling to make any sort of rental payment”. TPN reports.

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2. Make some upgrades

To find a new tenant or to increase the amount charged in rent, Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa, says it is sometimes necessary to upgrade the property.

He explains that increasing the appeal of a rental property follows the same principles of increasing the appeal of a home that is up for sale.

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“In both scenarios, the purpose of the renovation is to make the property appeal to the largest possible number of potential buyers or tenants. The greater the number of interested buyers or tenants, the more they will be willing to pay, and the possibility of a bidding war increases which could push up the asking or rental price further.”

To maximise returns, landlords should look for affordable and easy home improvements such as giving the property a fresh coat of paint or even replacing old doorknobs and cupboard handles in kitchens, bathrooms, and bedrooms.

“These simple switches can make the whole room look more modern, which could create greater appeal to tenants.”

He also recommends that landlords install features that enhance the sustainability of the home, such as solar-powered geysers and water-saving faucets.

“Not only will it cut down on water and electricity costs for either the landlord or the tenant (depending on how the lease agreement is structured), but it could also increase the appeal of the home as green features are becoming increasingly sought-after.”

Savage agrees, saying that affordability is not just about competitive rents.

“Installing water and power-saving devices like geyser blankets and timers, LED lights and low-flow shower heads is a quick and easy update that really can make a difference to tenants.

“If you have a garden, a rain water and/or greywater harvesting system is also a big drawcard. Tenants love green spaces, but don’t love big bills for their basic maintenance.”

In addition, she says most rental properties have not been designed with modern concepts like work-from-home in mind, but accommodating these new necessities does not have to be a major overhaul.

Installing a fast internet connection and a simple workspace in an unused corner, under a flight of stairs, or even in a converted cupboard, can take a rental from “no-go” to “must-have” for a lot of tenants.”

Read our latest Home Improver digital magazine below

3. Make your property pet-friendly

The number of tenants looking for homes that welcome their furry friends continues to increase. This is not only evident in tenant rental request adverts but also the number of new developments that are making their units pet-friendly.

Catherine de Villiers, rental consultant at Jawitz Properties, says more landlords need to start welcoming pets.

“With so many competing properties, landlords who allow pets widen the scope of potential clientele. Tenants looking for pet-friendly accommodation are generally willing to agree to clauses stating that any damage caused by pets will need repairing.”

Many rental properties are not pet friendly, Savage says, noting that this is not because the properties themselves can’t handle pets, but because four-legged “fur kids” get a bad rap with landlords.

“The thing is, pets are family for a lot of people. By not allowing them in your rental property, you’re potentially excluding a significant portion of your target market.

“Adjusting these limitations – within reason and in line with body corporate restrictions of course – is a great way to broaden your tenant pool and differentiate your property from the competition.”

Start the search for your perfect rental home here

IOL WEALTH

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