As a landlord, make sure you factor in these costs…

Fsp Invest, 02 Aug. 2013

Tags: landlord, costs, rent, property, what are the costs for renting your property out, agency fees, rates and taxes, utilities, inventory, tenancy agreement, fees, charges



When it comes to being a landlord, you’ll have other costs to pay on top of your bond payments. Read on to find out what other costs you could be liable for…



As a landlord, make sure you know all the costs that you could have to pay while renting out your property.

Four costs you’ll have to cough up when you rent your property out

On top of the payments due on any loan you have on the property, you need to factor in these costs too, explains Francois Joubert in Become a Master Property Investor in 90 Days

#1: Agency fees
Residential letting agency fees are generally 10% to find a tenant and to deal with the tenancy agreement, with an additional 5% to 6% for management.

Firms vary on how much else is included in their basic package. Some take out references on potential tenants, deal with the deposit and collect the rent for you, others won’t.

In any case, especially if you’re a first time landlord, get the full management package.

A property’s a major investment and merits professional care. If you cut corners to save small amounts, it could leave you with tenants who pay rent well below the market value.

It’s vital that the tenancy agreements are legally sound and executed, and tenants get their associated notices at the correct time.

Tenants are also less likely to try to take liberties with agents than with individuals.

#2: Inventory and tenancy agreement charges
You may have to pay an additional charge for the tenancy agreement.

To draw up the inventory and to perform a check-in will cost from around R500 upwards. This will depend on the size of the property and the number of items to list.

As the landlord, you pay this, while the tenant pays for the check-out at the end of the tenancy.

#3: Rates and taxes
As the landlord, you’ll have to pay for any service charges or ground rent.

#4: Utilities
The tenant will pay for electricity and phone bills.

If you pay for a security company in the form of levies, the rent should reflect this advantage to the tenant.

There you have it, the costs you’ll have to pay when you rent your property out.


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