In the current buy-to-let market quality tenants can bet on staying only in the best buildings. Picture: 123RF/ANDRIY DAVIDOV
Michelle Dickens, MD of TPN Credit Bureau, says in the past, rent collection was singled out as the primary pain-point for landlords."Nowadays, specialist tenant screening has become a priority. It is not about placing the first applicant but rather the best applicant.
In addition, FNB’s January Property Barometer paints a muted picture of rental prices in the near term. The muted demand from tenants and a surge in the supply of new flats have been responsible for the downward trend in rentals, Mkhwanazi says in the barometer. She says landlords have listed ever-escalating property costs, including repair and maintenance costs, as a huge challenge in the TPN survey. While many leases provide for the landlord to pass the costs of these increases on to tenants, this leaves little room to increase the base rental, she says.
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