Although there are two clearly defined types of rental property management, those working this field find that property owners often do not fully understand the differences between them, says Lanice Steward, MD of Anne Porter Knight Frank.

In the first type of rental contract, said Steward, the agent undertakes to try and vet a tenant with whom, subject to the landlord’s approval, a lease is then signed. After this the agent is no longer involved.

In the second type of agreement, the agent takes on the full responsibility not only for finding and vetting the tenant but also for managing the property efficiently.

This involves collecting the rent on time (and bringing pressure to bear when the tenant defaults on payments), ensuring that the property is properly looked after and that the tenant is not upsetting his neighbours (especially important in multi-unit sectional title schemes) and is paying the levy and service charges.

In both types of contract, said Steward, a good agent will undertake to do thorough credit and previous tenancy checks. This, she said, many landlords cannot do on their own because they do not know where the bureaus and credit checkers can be found nor have they paid the subscriptions for these services.

On occasion, said Steward, APKF have found that the landlord does not understand the level of service to which he is entitled. He may pay only for the tenant finding service but will expect ongoing surveillance of and checks on the property.

Alternatively, he will sign for the total management package but without realising that this includes all the services outlined above - especially the chasing of defaulting payers.

“Where a landlord does not understand his rights,” said Steward, “there is a grave danger that the tenant will not fulfil his obligations, with the long term result that the property deteriorates and loses value. Some 25% of SA sectional title schemes have at one stage seen this happen and some have proven beyond rescuing.

In other cases, said Steward, the landlord will imagine that he himself is fully competent to manage the unit on his own. Experience shows that all too often his leads to his checking up on it too little, to payment defaults and maintenance neglect and possibly to the tenant having to be evicted, a lengthy and expensive process on which the costs and losses are almost never recoverable.

A good managing agent, added Steward, will make the life of the buy to rent investor calm and untroubled.

"It is, in my view, very definitely worthwhile accepting the 10 or 12% commission, paid monthly, to achieve the peace of mind that good agents make possible."

For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.