6 signs your tenant will be troublesome
to the latest market research compiled by TPN, a registered credit bureau
and developer of the industry's first rental payment profile of its kind
in South Africa, on average 10% of tenants default on 2 months' rent, says
TPN MD Michelle Dickens.
As no landlord/ owner wants to be stuck with defaulting tenants and rising costs there are some telltale signs to watch out for before placing a tenant on the property.
The dead giveaways of bad tenants are:
However, there are some methods landlords can use to get themselves out of sticky situations without breaking any laws or incurring heavy fees from going the litigation route.
Do not hand over the keys to the property until:
Keep the property well maintained. The chance of finding and keeping quality tenants are better and the tenant is unlikely to blackmail you by stating rent was not paid because of a maintenance issue.
Always send your tenant their rent statement each month, then tenant cannot state rent was not paid because they did not know how much to pay.
Best practice for landlords is to realise that there is a direct correlation between a tenant receiving a monthly invoice/statement and payment on time. Landlords should provide the tenant with a monthly rental statement on the 25th of each month to improve the prospect rent collection.
Also factor in that the tenant might default, so it's advisable to include these figures into your own calculations when determining cash flow or shortfall for new investment properties.
* TPN specialises in tenant behaviour and rental performance.
Article by: www.tpn.co.za