For some, buying a new house or apartment doesn't quite fit into their budget, so naturally the next option is renting. Today we take a look at what right you have as a potential tenant, and how this process works. We have two property experts with us in the loft to discuss everything there is to know when it comes to renting. Simon Bray, CEO of Private Property, as well as Just Property Groups director and CEO Paul Stevens. Gents, warm welcome to the loft.
So where exactly is the renting market like at the moment? Where does private property sit?
The renting market is just as hot as it's ever been in South Africa. We see a lot of the market on private property. We see the listings coming on every day. We've seen hundreds more rental properties coming on to the platform in the last few months and I think it' s It's just the market shifting slightly. A lot of the first world markets around the world have a rental first, and certainly the property market in South Africa has been a buy first market. but issues around around affordability. Issues around how safe is my property investment these days, how convincing people that renting is part of its options. I mean what we like to say is there's fifty tenants for every landlord and private property in that system. Unbelievable demand.
I think the single biggest thing I'd like to point out at this stage of what we see almost 95% of the issues that arise are around a deposit. A deposit is a huge thing for your average tenant. He's often having to place a deposit and the first month's rental, while his deposit is still locked up with another agency. Then the tenancy ends, and there's always a dispute around, "What amount do I get paid back?" If they understand very clearly from the onset, what they need to do so they have got to bring the property back to the condition that it was, taking fair wear and tear into account. And I think that always leads to misscommunication. Where they don't understand, "Why don't they just do it themselves?" Clean the carpets. As soon as the agency is put in place, or the landlord, to paint the place, to clean the carpets, and then the tenant wants to argue about well , "I've been overcharged here."
Exactly.
I think, again comes back to understanding what you can do and what you can't.
And you've seen it all so people must use resource that's available to them. So make sure that you guys know all the new answers as you've seen sort of action takes place , so make sure you guys go and find the right resources online. Gents, absolutely eye opening, thank you so much for this chat.
Hopefully we have shed some light on the topic of renting so that you can make a more informed decision, remember you have your rights as a tenant, but also you have responsibilities. So make sure that you read your contract well and know what is expected from both yourself and your landlord.
You will find the full story on the Private Property Advice Centre