It could be that the current unstable financial climate leaves you with no other option but to rent. While renting is not such a permanent commitment as buying, there are certain matters you need to consider before you sign on the dotted line.
Renting is often more financially viable than buying property. In an area where investing in property is not affordable, renting property allows you to experience the area without making a commitment, says Samuel Seeff, chairman of the Seeff Property Group.
Renting in one area and buying property in another is a common arrangement, allowing for more flexibility.
Can you afford the costs?
Michele Gerber, non-principal property and rental practitioner of Seeff Plattekloof, says prospective tenants must be aware that there are upfront financial obligations.
Firstly, your household income must equal three months' rent. In other words, if rent is R5000 per month, your net income should be R15 000. Secondly, there is also the administration fee that has to be paid, as well as two months' deposit and rent for the first month.
When renting, it is recommended that you apply through an experienced rental agent who can smooth the way towards a trouble-free rental experience. Reputable rental agencies only take on financially secure landlords whose financial records are proven and stable. This provides peace of mind for the tenant, knowing that the landlord will be in a financial position to maintain the property and pay for any repairs when needed.
Benefits
One of the benefits of renting is that property maintenance costs will be minimal for tenants, says Samuel Seeff. Another benefit is that renting property allows you to experience an otherwise unaffordable area.
Renting in one area and buying property in another is also a common arrangement, allowing for more flexibility.
Disadvantages
The disadvantages are that you are paying off someone else's bond and that you can't alter the property without permission. You will also not enjoy the security and stability of having your own property since there is also no long-term guarantee that your landlord will repeatedly renew your lease, says Samuel Seeff.
However, if you have no other option but to rent, Michele advises that prospective tenants only rent properties that are in good condition and well-maintained. If the property is run down, it could be an indication that the landlord is not in a financial position or inclined to maintain the property. Michele also recommends that a prospective tenant ensures that any issues that need to be fixed before moving in are enclosed under special conditions in the lease.
Ask the right questions
Also, ask the owner about the utility costs and be on the lookout for hidden costs. Do you have the abilities - financial and otherwise - to look after a pool and that luscious garden? If the rental property is run by a body corporate ask for a copy of the corporate body rules before you sign the lease, recommends Michele. It will be a pity to move in only to find out you can not braai in the garden or have pets.
A reputable agent will do a walkabout with you and take pictures of any damage and defects. Also, check that the property will be deep-cleaned before you move in and that every lock and key are in working order.
According to Law for All the landlord is responsible for fair wear and tear as well as the maintenance of structural fixtures and fittings such as fixing roof leaks, replacing a geyser, or fixing plumbing and electrical problems.
However, if the damage was deliberately or negligently caused by the tenant, it will be the tenant's responsibility. The landlord must also ensure that repairs are done within 14 days of being informed by the tenant unless otherwise agreed.
The tenant is usually responsible for normal wear and will need to replace light globes, taps, locks, handles, and broken windows, and maintain the garden.
Remember, says Michele, when you sign the contract you seal the deal. Therefore, read everything carefully and question anything you don't understand.
Absa recommends that you double-check the agreement on your deposit, ask what changes you are allowed to make, understand the lease period and termination policy, and never transfer any money before all contracts have been finalised and signed.
If you have any complaints or issues that can't be resolved with the landlord, the Rental Housing Tribunal can be approached. A complaint can be lodged online at https://westerncapegov.custhelp.com or call 0860 142 142.
So, if you want to rent, save up for all those deposits and try and do it through a rental agency - and remember this: You will always own a home. It is only the house that is rented.