|Did someone mention a 5% decline in Rental Payment behaviour over the last year?
TPN is South Africa’s largest aggregator of tenant rental payment behaviour and our numbers confirm that far from falling off any cliff, tenants in good standing declined a marginal 0.47% year on year for the first quarter of 2018.
Of course tenant collection capabilities do differ between property service providers as do credit reports, so property managers and landlords who actively work the TPN system might simply be reaping the rewards of quality tenants placed using quality credit reports = quality rental collection – and thankfully have not experienced the reported 5% decline in tenant behaviour.
It is also true that the first quarter of each year does suffer from the traditional “Januworry” holiday hangover syndrome and so the ‘paid on time’ status of a relatively higher number of tenants may shift to grace or late payment status as a result.
If you are buying into a sectional title, the more you know about this type of title, the more likely you are to protect your investment. Here are some questions you need to ask.
What exactly am I buying?
When you buy into a sectional title scheme you are buying a composite thing called a “unit”. A unit consists of a section together with a share in the common property. A section is an area which you own exclusively (townhouse or apartment) to the median line of the walls, floors and ceilings. The common property is an area which you will co-own with all other section owners and includes all areas of the scheme which are not included in the sections such as driveways, entrance foyers, stairs etc.
Can I participate in the management of the scheme?
Buying a unit in a sectional title scheme comes with automatic membership to the governing body of the scheme, called the body corporate. Membership is mandatory so even if you are a buy-to-let owner you, as owner, are the member of the body corporate and not your tenant
What costs will I be responsible for?
All costs related to your section, which you own exclusively, are for your own account, the common property (driveway, garden, roof, etc) is not your exclusive financial responsibility. All costs related to the common property, which is co-owned by all owners, as well as all payments for the general running of the scheme are paid by the body corporate from its levy fund.
How do the rules of the scheme restrict the use of my unit?
Every sectional title scheme is governed by the Act but each scheme may have different management and conduct rules which are in place to regulate the way the scheme is run and the way in which the owners and occupiers behave. All owners and occupiers are bound by the scheme’s rules so even if you are a buy-to-let investor you are responsible for ensuring that your tenants are aware of the rules and abide by them. The rules of a scheme can be incredibly restrictive and therefore it is essential that you read and understand the rules before committing to being bound by them when buying into the scheme.
Is the scheme financially sound?
Have the scheme’s financials been audited? Maybe a “special levy” is due to be paid and the Estate Agent hasn’t told you!
This feature helps you keep track of what you (or your staff) have done on the monthly accounts and what still needs to be done. BUILDING TO-DO checks off (✓) what you have already done, i.e. generated electricity usage or if you don’t generate electricity usage the event will be crossed out (X) or it will be open if it still needs to be done. still needs to be done.
Trident is able to generate full reports such as transaction batch, age analysis, audit trail, levy roll, statements (with your logo) with or without utility usage, graphs or VAT. Other reports include debtor transaction history, bank statements, out standing balance with notes, owners insurance list, credit control letters, budget variance reports and other letters and notices.
Have you made an arrangement with an owner that you want to record on his/her debtors account and want to follow up on a certain date. NOTES is the way to do this. NOTES can be categorized into topics and can be used in all segments of the system – buildings, units, entities and debtors.
Trident has got exciting features that will benefit you all the time, features such as date reminder. Unlike a diary which reminds you on the day of the event, date reminder can be set up to remind you of the different dates with different reminder parameters, e.g. Lease End Date can be set to start warning you every day , starting 40 days before due date. Maybe you would like to wish each of your owners a happy birthday – date reminder could de set up to remind you 1, 2 or 3 days before the date.
4 questions to ask a seller before buying a house/flat.
• How much did the seller pay before? -If the seller paid less than what they are offering, then they probably remodeled the house and did a lot of fixing on the house. And if they paid more than what they are offering then the house has probably got one or more faults in it or that the neighborhood has depreciated (not inviting/safe).
• How much does the seller owe? – some people sell their homes without telling the buyer about any outstanding payments such as water and electricity. Leaving the new owner with a lot of sorting out to do.
• How many offers has the seller got? – you are most likely to get a lie for an answer but you need to ask anyway. Just because the house did not get a lot of offers does not necessarily mean there is something wrong with the house (people have different tastes after all) it just means you have to look in to it some more.
• How long has the house been on the market? – if the a house has been on the market for a long time and is being sold at a reasonable price then I suggest hat you also do not rush into buying it just as yet.
• How much has similar homes in the neighborhood sold for? – this will give you an idea of weather or not you are being ripped of or given a bargain.
TPN is a specialized credit bureau that provides in-depth tenant information, rental payment behaviour and profiling of tenants. TPN can also can create a comprehensive credit report on a potential tenant.
To learn more about TPN, go to www.tpn.co.za
17 trees are saved by every ton of existing paper that is recycled. That means if we pulped every Harry Potter book we wouldn’t be able to see the sky for foliage
Once you have invested in rental property, the responsibility of maintaining and running the property can quickly become overwhelming. The logical thing to do is hire a residential Property Management company that is running on Trident and your stess levels will be decreased. 🙂