How to Find Good Tenants for Your Property

Netwerk 24 recently shared the vacancy rate statistics for the first quarter of 2023. Gauteng had a low vacancy rate of only 10%, but the Western Cape takes the cake with an even lower rate, sitting at a mere 2%. This is outstanding news for the rental market and landlords in South Africa!

Even though there is a high demand for rental property, and your property may receive 50 enquiries, it is important, now more than ever, to place the right tenant in your property.

So, how does a 100% success rate of placing tenants sound? Pretty good, right? Unfortunately, circumstances beyond anyone's control can lead to tenants defaulting on monthly payments or ceasing to pay completely.

What if we told you that there is a way to sift through applicants, screen them, and decrease the risk substantially to reduce your stress as a landlord...and we have a 99% success rate of collecting rent for a 12-month period!

Finding the right tenant for your property can be done in just 5 easy steps.

5 Steps to Finding the Right Tenant

1. Choose the right letting agent
2. Price your property correctly
3. Market your property well
4. Let your agent handle the viewings
5. Screen possible tenants thoroughly

Let's jump right into finding the right tenant for your rental property...

1. Choose the right letting agent

As the saying goes, trust the professionals. Employing the services of a well-trained and experienced letting agent, from a reputable company, will more likely than not set your mind at ease. The rental agents at Louw & Coetzee Properties follow tried and tested systems to streamline the process of screening and selecting a tenant, as well as make use of an unbeatable AI system. And even more than that, the rental team is one of the best you will find, providing amazing support for the agents, as well as landlords and tenants!

2. Price your property correctly

Consider the competition - the similar properties in your area to let - and what they are being rented out for. Your letting agent will assist in pricing your property based on surrounding properties, as well as their experience in the industry, and knowledge of the current property trends. Pricing your property correctly, at a market related amount, will assist in attracting the right tenant for your property.

3. Market your property well

First impressions matter, right? That is why using a professional photographer & staging your home for real estate photos is so important.

Photographs should include the selling features of your property, and a nice added value for your listing are area photos for potential tenants to see what is going on around the property. Staging your home is also essential, as you want to de-personalize your property for potential tenants to envision themselves living in the space.

4. Let your agent handle the viewings

You have employed their services, now trust the process. Your agent may suggest having fixed days for viewings, meaning a Wednesday from 6PM to 7PM and Saturday from 1PM to 2PM to ensure you have time to neaten your property and not disrupt too much of your day and week. Your agent will also be prepared to answer the many questions a prospective tenant may have, as well as supply them with additional information to assist in marketing the property to find the right fit.

5. Screen possible tenants thoroughly

You and your agent may have requirements for the type of tenant you think will be the right fit. Just remember that these requirements should not be discriminatory, instead it should be based on if the tenant will be able to pay, will not give trouble paying, and will look after your property while living there. With this being said, stick to your requirements and be strict with following them.

Credit checks are obviously a must, but Francois Louw, Managing Director of Louw & Coetzee Properties says that "we can no longer only rely on credit checks."

Therefore, Louw & Coetzee Properties has partnered with a quality tenant screening system called Averly. Averly is an AI system developed and established in Europe, and allows us to:

• Learn about an applicant by viewing their credentials via instant access
• Have a fast, yet effective, administration process
• Compare applicant's scores based on behaviour
• Reduce damage to the property, default payments, and overall reduce a landlord's stress

Averly states that "Top-scoring tenants are far less likely to damage your property or default on payments." The system has ultimately helped our team spend less time on managing tenants, as well as ensured a 99% success rate for rent collection over a 12-month period.

Pro Tip for Finding the Right Tenant

Lastly, avoid trying to find a tenant fast and remember that good things take time. Skipping essential processes, such as doing a credit check, is the fastest way to lose money in the long run. By following these 5 steps to find the right tenant, the process will move fairly quickly, but your rental team will still ensure that all of the boxes are ticked.

Ultimately, the decision is still up to you for who you place in your property, so choose wisely.

For more information regarding rentals, get in touch with our Head of Rentals, Angie Passman:
021 976 2730 | angiep@louwcoetzee.co.za

Written by: Hayley Kellerman