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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

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