Owning a rental property is seen as an investment, but enter into discussion with a landlord and soon you’ll discover that it can also be a frustrating experience.
One solution to help landlords minimise the frustration, costs and loss of further potential rent income associated with slow payments, is a product offering called Rentshield. In many cases, the rent paid by tenants assists in reducing the landlord’s mortgage on that property. If a tenant is not paying the rent on time, it might lead to the landlord defaulting on his own bond repayment. This could result in the relationship between tenant, estate agent and landlord turning sour, as the one holds the other accountable for payments not received.
As landlords have discovered in recent years, slow payments have become increasingly common. When it occurs, it is important that you do not take the law into your own hands by changing locks or disconnecting the tenant’s water or electricity. South African law protecting tenants against eviction is complicated and requires expert advice.
Marlon Shevelew, Director of Marlon Shevelew and Associates Inc, says their offices receive a number of instructions regarding perpetually slow payers of rent and utilities, which cause their landlord clients terrible stress. He says often, a slow payer forces the landlord to consider cancelling a lease just to bring the uncertainty of not knowing if rent will be available in time to settle other expenses to an end.
He says as opposed to a non-payer, which necessitates immediate action for the breach to be remedied, a slow payer causes the landlord to be in limbo, uncertain whether to spend time and money on reminding the tenant and chasing the payment, not to mention having to contend, on occasion, with a tenant who claims there is some grace period in law for the tenant to pay late. He says, however, no such grace law exists!
One solution to help landlords minimise the frustration, costs and loss of further potential rent income associated with slow payments, is a product offering called Rentshield. According to Rentshield Director, Martin Goodman, the Rentshield offering protects the landlord against the stress associated with residential letting. He says it provides buy-to-let investors with some peace of mind concerning their investment, at no cost to the landlord. Rentshield deals with these challenges efficiently, thoroughly and to the letter of the law.
He says what distinguishes them from rental guarantee products available on the market is that Rentshield is a product paid for by the tenant and not the landlord. According to Goodman, should the tenant not pay on the due date, Rentshield will pay the landlord’s rent within 48 hours of him lodging a claim. He says if the tenant continues to default for three months, Rentshield will evict the tenant on behalf of the landlord. Rentshield is an exciting entrant to the residential letting sector, offering attractive benefits to all stakeholders including zero deposit for tenants, rental protection for landlords and vetting with inspection services for property managers. He says the mutually beneficial features should see this product gain traction and build momentum across South Africa.
SOURCE: www.property24.com
