Entering the world of property ownership is a great achievement. Add to that becoming a landlord and the level of responsibility significantly increases. Although this may seem daunting, have no fear, we’ve provided for you a step-by-step guide for helping you navigate from finding a tenant to locking up after the tenancy has ended. Here is our:-

Landlord’s Guide to Tenancy

1. Know your Tenant
As a landlord, it is your responsibility to know as much as possible about your prospective tenant(s) BEFORE they move in. Request details such as employment history, rental history and most importantly proof of ID. Draft a Prospective Tenant Info Sheet which also requests information such as professional references, contact details for previous landlords and do not forget to make sure how many persons will be residing at the premises. It is your duty to know who and how many you are letting into your property.

2. Detailed Lease Agreement
Once you have done your background checks and feel comfortable with your prospective tenant, it is time to draft your lease. Make sure this clearly states the start and end date of the tenancy as well as the rental fee. You should also clearly outline payment methods, deadlines and any penalties associated with failure to meet those deadlines. Clearly outline what are your (the landlord’s) vs tenant’s responsibilities as well as termination and renewal clauses and consequences of breaking the lease. Explicitly list what is / is not accepted on the premises ie smoking indoors, pets, repainting of rooms, removal or changing of fixtures without permission etc.

3. Agreement of Terms
In addition to outlining the terms in the Lease Agreement, as the landlord, you should also make yourself available for discussion to ensure there is no miscommunication or misunderstanding of terms. Provision should also be made for some negotiation and adjustment of terms so that upon signing both you and your prospective tenant are comfortable and in full agreement.

4. Presentation of Premises
Prior to your tenant moving in, you should ensure that the property is in good condition i.e that the grounds have been well manicured, that any old (worn) fixtures or furnishings have been replaced, any damaged areas have been repaired, that the property has been thoroughly cleaned especially frequently used areas such as bathrooms, kitchens and that bedroom linens have been cleaned or replaced. Refresh walls with a new coat of paint and most importantly, ensure that all health and safety standards are met.

5. Secure Premises (Security)
To protect your tenant from harm and yourself from liability, change external locks and update security systems where applicable before your new tenant moves in. The last thing you want is a previous tenant entering the premises after your new tenant has taken up residence.

6. Secure Premises (Safety)
Double check with your insurance firm to make sure your property has the correct type of coverage. Ensure smoke detectors and other safety alarms are up to date and properly functioning. Where applicable, have fire extinguishers professionally inspected to ensure they are still compliant with safety regulations. Remove overgrown brush, where necessary provide additional external lighting and fix shaky support posts, railings and definitely address any areas which are likely to become slippery.

7. Request Rental & Security Deposit
The first month’s rent and security deposit must be paid before the tenant moves in. This sets the tone for future payments, if the tenant cannot pay on time at the start of the lease, there is a high chance that future payments will be late as well.

8. Transfer of Utilities
Once payment has been received, and before the tenant moves in, you must either transfer the utilities for which the tenant is responsible to their name or provide them with authorization letters to do so at their convenience. Most utility companies have templates addressing this.

9. Walk Through
On the actual day that the tenant moves in, you and the tenant should do a property walk-through where you both take note of and agree to the condition in which the tenant is receiving the property. It is best to have a check-list on-hand that you both can sign-off on in agreement. It is also highly recommended that you take photos at this time. These will be absolutely necessary as a reference point when the tenant moves-out.

10. Exchange of Contact Info
In most cases, your realtor will facilitate the tenancy up until move-in date at which point you will take over and be responsible for all communication with the tenant. As such, you should obtain the client’s details and provide yours (or your property manager’s if applicable).

11. End of Tenancy – Utilities
At the end of the tenancy (provided that it is not renewed) make sure that the tenant transfers all utilities back to your name.

12. End of Tenancy – Walk-through
Once the tenancy has ended, conduct another walk-through to ensure that you are receiving the property in the same condition in which you leased it (normal wear and tear excepted). If the conditions are satisfactory to you, collect all keys.

 

Congratulations! You have just leased your property!!!