The property market in South Africa at the moment is a cutthroat one.
Rental properties are in short supply, while the demand for homes is ever increasing as people struggle to raise the appropriate home loan to buy a property. This demand often leaves potential tenants arriving at a rental property only to find they are competing with 15 others, all applying for the same property to rent.
While this creates a difficult situation for potential tenants, landlords are forced to filter several applications trying to figure out who the “best” tenant might be.
Meyer de Waal, an owner of a rental property, recently faced this exact problem;
“I recently advertised a flat to rent and had 12 potential tenants all arriving at the same time, with 5 of them begging me to rent the apartment.”
Meyer was forced into the challenging task of working out who to rent the apartment to.
“I couldn’t judge the application on appearance alone,” Meyer went on to say. “ The risk of accepting a tenant on the spot, without first checking into their financial situation, ability to pay a deposit or references from previous landlords, is simply too great.”
The pitfalls of renting don’t stop with the application process.
Often potential tenants are required to pay an upfront rental deposit, of 1 or 2 month’s rental to secure the property. This leads to severe cash-flow problems for the tenant as they most likely paid a similar deposit on their existing rental property, which their current landlord will most likely only release 7-14 days after they have vacated the current premises.
“I recently applied to rent an apartment in Tamboerskloof,” Mandy B said. “I was asked to pay an upfront deposit of R20 000, equal to 2 month’s rent. The problem was my previous landlord only released my current deposit 14 days after I moved out of that apartment and it meant I had to have R 30 000 available as rental deposit, which included one month’s rental payment upfront, to secure my new apartment.”
Starting a Revolution
The comprehensive revolutionary new service aims to solve this problem by:
- Streamlining the entire rental process
- Pre-approval and checking of Tenants before ever applying. This way landlords and agents not only get the best possible tenants but also cut down on the time taken to run all the necessary checks that usually occur after they receive an application.
- Comprehensive Fulfilment Process
- An A-Z process on-behalf of the tenant and landlord. Supported by a stringent due diligence process, each tenant is screened for credit worthiness and their monthly affordability, ensuring that their commitment to landlord can be kept and maintained for the duration of the lease agreement.
- Rental Income Guarantee & Legal Costs cover provided, to ensure:
- Rental to be paid on the first day of each month,
- Rental income is covered for 3 months in case of default,
- All legal eviction costs are covered, should one need to evict the tenant.
- Deposit headaches solved
- A Credit Line is available to raise finance for the required rental deposit and relocation costs for the tenant.
- Lease Agreement
- A comprehensive, fully compliant lease agreement is made available, underwritten by a trusted Rental Guarantee Company.
We’ve taken on board the best market leaders as partners to revolutionise the world of modern day property rental says Meyer. The leading peer-to-peer marketplace in South-Africa, backed by Barclays Africa, made available access to a credit line of R100 million to provide tenants with transparent and affordable finance, with personalised interest rates matching their affordability. The finance offered includes up to two months upfront deposit and the first month’s rent instalment as well as relocation costs.
A rental guarantee company with more than 12 years track record will underwrite and guarantee the landlord’s rental income for up to 3 months through the rental guarantee component, before the tenant takes occupation.
“We’re building the next generation rental marketplace, matching pre-qualified tenants to the criteria of landlords,” de Waal went on to say. “Both sides of the table are protected and taken care of as our entire process is frictionless, cost effective and sustainable to the property market.”
This revolutionary service offering relieves both the tenant and landlord of their financial, administrative and practical concerns in a way that simply isn’t offered by the current market.
What About Buying?
There is always an ambition to buy one’s own home and we assist to realise this.
Many tenants rent with the dream to buy their own home at a later stage, either once they have raised enough money for a deposit or they simply need time to improve their affordability or credit score. As an additional value-added service, aspiring home buyers subscribing to the offering will also be supported to prepare themselves to buy their own home in the future.
The tenant rents the property first, securing the option, over time, to buy the property. The product also facilitates the opportunity for a tenant to build up a deposit from a portion of the rental paid and the track record of the tenant is used to support his home loan application, at the end of the Rent2Buy period, to support the home loan application.”
“Rent2Buy is essentially buying a property by renting it first,” Meyer says. “We work with the seller and the potential buyer, helping both to achieve their goal.
For more information contact Meyer de Waal 021- 461 0065 or firstname.lastname@example.org