Whether you’re an investor with several properties to let or a homeowner keen to tenant your property while you’re away on a work contract, you can simplify the process by hiring a good letting agent.

“Such an agent is usually paid 10 percent of the monthly rental, but the peace of mind that comes from having a professional handle the lease, the tenants and the property in your absence is worth this fee,” says Berry Everitt, MD of the Chas Everitt International property group.

The question is, then, how to select a good letting agent? “A personal recommendation always helps,” says Everitt, ”but if you have to go it alone, preferably choose an agent who already manages a portfolio of rented accommodation and can provide references from other landlords.

“You should also make sure your agent is registered with the Estate Agency Affairs Board, has a trust account for clients’ money and only takes commissions from landlords (not from tenants).”

Writing in the Property Signposts newsletter, Everitt notes that having made your choice, it is likely that you will then be asked to sign an agency agreement or “letting mandate” that covers the agent's right to let the property on your behalf and manage it during the tenancy.

“Make sure you read it and do not sign it if there’s any part that is unclear or that you don’t agree with.

“Similarly, you should check out the lease agreement your agent will be using. And if there are any special instructions you want your agent or tenant to follow, put them in writing, date them and keep copies in a clearly marked file.”

However, once you’ve reached agreement and the agent knows what you expect, it’s time to back off and let the agent do his or her job.

“An experienced agent will know how to find a suitable tenant and how to check references. He or she will also ensure that an adequate deposit is paid and react quickly and correctly if the rent is not paid promptly or if repairs are needed. And that is, after all, the service you are paying for.”

www.iafrica.co.za

20/08/2008