Managing agents handle all dealings with tenants - from the rental payments, follow-ups and deposit managing to inspections and liaising with tenants on any matters. “Economically, we are in a time of fear and uncertainty, and many of us will be looking for ways to offset financial risks, and landlords should be aware that while renting a property out is lucrative, it now comes with even more risks as the economy impacts affordability for tenants,” says Natalie Muller, Regional Head of Rentals for Jawitz Properties Western Cape. “High-risk tenants will become more exposed, but we are now finding that even some outstanding tenants, those who always pay on time, are starting to default, as circumstances change economically, and salaries are not necessarily being increased, or by as much, while everything else goes up in price - it is really a difficult time.” There is an option 'just to vet' Muller says the vetting process of tenants, even at renewal stage, as well as throughout their tenancy is essential, and while some landlords may want to manage a rental themselves, they can still consult with estate agents for assistance in vetting a tenant only. The vetting costs are initially covered by the tenant, and for a nominal fee the agent can then monitor the tenant on the landlord’s behalf. “This is definitely an option, but of course having an agent manage your rental property in its entirety comes with even more benefits,” says Muller. Managing agents handle all dealings with tenants - from the rental payments, follow-ups and deposit managing to inspections and liaising with tenants on any matters. As a strained economy can breed opportunistic crime, Muller says security features are really becoming an essential requirement. “We assist landlords in checking that their tenants are keeping utilities up to date and are able to see at any point how a tenant is managing, if all their bills are paid on time, for example, because they might be paying rent but defaulting elsewhere,” says Muller. “But beyond a regular credit check, we also vet a tenant’s employer to find out if the employer sees the tenant remaining at the company for some time. We get the full picture so we can be sure the right tenant is put in place, and only remains in place if they should be.” Muller says it would be wise for landlords with mortgage bonds relying on rental income to cover bond repayments to consider an agent who can make sure that appropriate tenants are in place. “If your tenant defaults in these types of situations, it is even more difficult, but there are also insurance policies that landlords can consider to add another level of security,” says Muller. High demand for safety and entry-level rental space Muller says those who are able to may convert large rooms or staff quarters on a property into living space that can be rented out as there is huge demand in the entry-level rental space, where in some areas landlords are seeing a return of 3.5% to 7.5%. “A converted room with a shower and loo in the Southern Suburbs in Cape Town may go for as much as R5 500 or R6 000 per month, depending on the exact circumstances,” she says. “Of course, location is a factor here, but so is security. Landlords may even find that installing better security features will attract and sustain the right type of tenant.” As a strained economy can breed opportunistic crime, Muller says security features are really becoming an essential requirement. “These improvements will come with a cost - to install and maintain - making it all the more important to preserve and ensure your rental income, and the best way to do so would be to have a managing agent involved,” says Muller.