The Rep 21 February 2020
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THE REPRESENTATIVE 21 February 2020 Tel: (045) 839-4040 / editorial: mjekulal@therep.co.za / advertising: charodinev@therep.co.za 5
PRIME P R O P E RT Y
Upfront rentals should
be treated with caution
Both landlords and
tenants can lose out
According to the TPN Credit Bureau,
upfront rental payments should be
approached with caution.
From a landlord’s perspective, it may seem
great to receive upfront payments for between six
to 12 months’ rent in advance, but the payments
could well come to a screeching halt because of a
change in the tenant’s financial situation.
The landlord may be primed to trust the tenant
as upfront payments have a powerful positive
impact on the relationship of trust and the
landlord may allow the tenant some leeway, to
their own detriment.
While not always the case, a willingness to
pay upfront could allude to the fact that money
comes and goes for that tenant.
Another problem which often arises is that
landlords and tenants don’t agree upfront on how
the payment for utilities will be handled.
This should be clearly set out in the lease
agreement, especially if the tenant is required to
pay that monthly over and above the upfront
rental payment.
Landlords should also note that regardless of
whether the tenant has paid the lease upfront or
not, the tenant is still entitled to cancel by giving
20 business days’ notice in terms of the
Consumer Protection Act.
Save for a cancellation penalty or any damage
repairs, any remaining upfront rental will need to
be refunded.
The money should therefore not be spent but
invested and only drawn on a monthly basis.
TPN advises that it’s best to make use of an
estate agent as an intermediary who can ensure
that all is above board and that the money is in
trust and accruing interest for the tenant’s benefit,
and only drawn and paid over to the landlord as it
becomes due.
Alternatively, the landlord can place the
money in a separate account with a monthly
withdrawal set up to periodically release it.
Seeff’s Century City branch manager, Adrian
Louw, says there are definitely benefits to tenants
paying rent upfront as it offers excellent security
and could put the tenant at the top of the list of
applicants.
The difficulty could, however, arise if the
upfront rent is only for a period of the lease; say
six out of the twelve months of the contract.
He recommends all tenant applications be
vetted thoroughly, regardless of how the tenant
intends to pay.
Offering to pay the lease upfront should not
be a way for a bad applicant to circumvent the
process.
Tenants looking to pay upfront should also be
subjected to FICA scrutiny to combat any
potential that it may be a money-laundering ruse.
What could, for example, happen is that the
tenant would pay six months upfront, but then
use the CPA provision and cancel giving 20
business days’ notice by their second month.
This time though they would provide a
different bank account for the rental refund.
Mark Johnson, Seeff’s MD for the North Coast,
says while always cautious, they do accept
upfront rental payments provided the source of
the funds can be verified to ensure that it is not
part of a money laundering scam.
Upfront payments are often ideal for those
looking to negotiate a better rental price.
While it might be preferred by someone with
a negative credit score, he says the agency always
does additional reference checks to satisfy the
landlord that they are not dealing with a
delinquent tenant.
Qualifying the tenant thoroughly should
alleviate any concerns over upfront rental
payments. Keeping the money in a trust account
and then making monthly payments to the
landlord is also always preferred.
According to Seeff’s Centurion MD, Steve van
Wyk, upfront rentals don’t benefit tenants in
general, unless it’s to circumvent a bad credit
score.
Generally, there isn’t really any discount for
upfront rentals and the tenant may lose out on
interest they could have earned on the money.
PROPERTY FOR SALE
CRAIG
SUMMERTON
083 508 8125
CRAIG SUMMERTON
083 508 8125
CRAIG SUMMERTON
ANDREA
JACOBS
082 609 9552
BERGSIG (JUST LISTED!!) R1 785 000
Lovely spacious family home with
beautiful features. This home offers
083 508 8125
4 bedrooms (BIC), 2 Bathrooms
(MES), lounge with fire place,
diningroom, Kitchen (BIC),
entertainment area, 2 bedroom flat
for extra income and undercover
carport. This is going to sell quick.
Call me now to view!!
6 2 1
CRAIG
083 508 8125
BERGSIG (REDUCED!!) R1 650 000
Stunning townhouse in a safe and
secure complex. This home offers 3
bedrooms (BIC), 2 Bathrooms (MES),
lounge/dining open plan, Kitchen
(BIC open plan), single garage,
carport. Don’t miss out on this one.
Call me now!!
CRAIG
3 2 1 1
083 508 8125
SANDRINGHAM (JUST LISTED - GREAT PRICE!) R1 300 000
This very well cared for home has
3 bedrooms, 1 main bathroom,
separate toilet, lounge, diningroom,
fitted kitchen PLUS JOJO tank,
borehole, single garage and outside
storage. DON’T LET THIS SLIP
THROUGH YOUR FINGERS!
3 1 1
JUST LISTED R1 350 000
3 bedroom flat/apartment close
to all amenities. Fully secured by
intercom entrance, remote control
access to undercover carport
parking, very spacious open plan
lounge diningroom, fitted kitchen, 2
bathrooms, separate toilet. MUCH
TO OFFER AT A GREAT PRICE
3 2 1
ANDREA
082 609 9552
ANDREA
082 609 9552
PHONE CRAIG OR ANDREA FOR A FREE VALUATION IF YOU WANT TO SELL YOUR HOME. WE
NEED PROPERTIES IN ALL AREAS!!! FOR RENTALS, CONTACT DANELLE ON 045 807 3800
Bowes McDougall Inc.
27A Prince Alfred Street, Queenstown | Tel:045 807 3800
HAPPY
TENANTS:
There are
definitely
benefits to
tenants paying
rent upfront as
it offers
excellent
security and
could put the
tenant at the
top of the list
of applicants,
says Adrian
Louw, Seeff’s
manager at the
Century
City branch
P i c t u re :
SUPPLIED
JUST LISTED
CENTRAL
5 Beds | 2 Bath | 1 Lounge
Invest in this 714 sqm office with
aluminium door and window frontage
that is currently rented by financial
professional and the main building is
blank and can be converted according
to your needs.
SOLE MANDATE
Sipiwe Follie
C 076 832 9706
EQT 8263
WHITTLESEA
R180 000
2 Beds | 1 Bath | 1 Lounge
Now this 420 sqm home is just ideal
for first time home owners, it has a
ceiling and a geyser as well as a “JoJo”
tank and is situated in the middle of
eDongwe.
SOLE MANDATE
Sipiwe Follie
C 076 832 9706
EQT 7999
EZIBELENI
R 340 000
2 Beds | 1 Bath | 1 Lounge
This home is tiled throughout and has
aluminium windows. It has a basin and
a bath in the bathroom and built in
cupboards in the bedrooms. Its close
to the schools, shops and main taxi
route for your convenience.
Moira Pappas
Principal
C 082 478 7353
Sipiwe Follie
C 076 832 9706
EQT 7925
R1 600 000
SOLE MANDATE
graphic © liudmyla pushnova / 123RF.com
Sona drama will
not aid investor
confidence
The disruptions that suspended
proceedings at Sona do not
bode well for investor
confidence in our nation.
“Despite this, President Cyril
Ramaposha has made some
encouraging promises and
inspiring statements in his state
of the nation address, but I am
interested to see how many of
these promises will come into
b e i n g ,” says regional director
and CEO of RE/MAX of
Southern Africa, Adrian Goslett.
“While some might feel that
the presidency has not done
enough to solve the country’s
most pertinent issues, others will
have had their confidence
restored by the solutions posed
in this address. Though we
might notice a positive upswing
in market activity following the
Sona caused by this renewed
confidence, this momentum
will wane if people become
disillusioned by a lack of
implementation. Only once his
statements around lowering
unemployment, improving
economic growth and dealing
with the Eskom crisis come into
being, will we start to see a
notable and sustainable change
in the real estate market,” s ay s
Goslett.
BALMORAL
R1 630 000
3 Beds | 2 Bath | 1 Lounge
This spacious home with an elegant
appeal is set in the heart of Balmoral.
Not only does it have a spacious
lounge with a separate TV room and a
large kitchen but is set on a corner with
well secured high walls.
Njongo Mvabenyathi
C 071 036 0371
EQT 8266
SOLE MANDATE
STERKSTROOM R350 000
3 Beds | 1 Bath | 1 Lounge
This house is quite spacious and
fenced in too. It also has an out
building that has its own bedroom,
bathroom, carport and a storeroom
and is close to a school as well.
Sipiwe Follie
C 076 832 9706
EQT 6548
RENTALS - 045 838 2560
TOP TOWN:
1 Bed Flat – R5 200.00
2 Bed Flat - R5 000.00
SANDRINGHAM:
4 Bed Town House – R11 000.00
3 Bed Flat – R7 170.00
2 Bed Flat – R6 000.00
2 Bed Flat – R5 900.00
KINGS PARK:
3 Beds Flat – R6 500.00 (incl. water)
VICTORIA PARK:
Bachelor Flat – R2 850.00(Furnished)
EZIBELENI:
Bachelor flat – R2 000.00 (w&l incl.)
COMMERCIAL:
Office space 80 SQM – R6 600.00
Rental applications must be
completed before viewings