The comfort that your rental income is insured or guaranteed is one of the most valuable assurances that can be provided to a landlord.
A prospective tenant that applies to secure a rental agreement with a landlord, armed with a pre-issued rental guarantee in hand, will most likely be the preferred tenant for a landlord.
A one-stop-service, combining rental collection, quick distribution of the funds to the landlord and a rental guarantee at an affordable premium is a sure winner, says Meyer De Waal, a property attorney in Cape Town.
“We previously relied on such a rental guarantee service for our landlords, as well as the Rent2Buy product that we developed over many years.
We made use of the services of a company with a proven track record, who built up their rental guarantee product over a 14 year period.
Sadly, the business could not survive the impact of Covid 19 as thousands of landlords knocked on their doors, and they could not manage all the claims submitted by landlords with defaulting tenants.
They closed their doors during the Covid 19 pandemic, leaving many landlords without a rental guarantee service.” Said De Waal.
THE GOOD NEWS
The good news is that we have found another company that can provide a full range of rental insurance products for a landlord, as well as our Rent2buy product.
We have secured a service level agreement with this company.
The company’s rental product was securely packaged and underwritten by a national insurance company, and they were able to spread the risk and so survive the Covid 19 pandemic.
WHAT IS ON OFFER?
FIND A TENANT
A comprehensive service is available to place the advertisement for the property to rent on the leading online rental platforms.
SCREEN THE TENANT
Once a tenant applies, a service is available to perform a quick online screening process of the tenant.
The tenant will have the outcome in a real time and in a few minutes.
SCHEDULE A VIEWING
The pre-approved tenant can then schedule a viewing through an online platform at a time that is convenient for both the landlord/agent and tenant.
If the tenant is then interested to secure the lease, a deposit is required.
A comprehensive affordability and background check is performed.
RENTAL GUARANTEE CERTIFICATE ISSUED
Once this procedure is completed, a certificate will be issued to the tenant and landlord to confirm the rental guarantee cover and terms and conditions applicable, or the reasons why it was declined.
Once accepted and approved by all parties, the legal documents are drafted and signed.
The landlord can then select to take up a 2 or 4 month rental protection guarantee.
Legal fees and eviction services are also included to cover the legal costs if the tenant must be evicted due to the breach of the lease agreement.
The service also includes the collection of the rental and distribution of the funds.
The incoming and outgoing inspections as required by the Rental Housing Act and Property Practitioners Act are all completed and recorded for compliance purposes.
HOW CAN A TENANT BENEFIT?
With a sharp increase in the interest rates for home loans, fewer people can qualify to buy their own homes.
The result is that there is now a huge demand for rental properties.
Tenants are frustrated to secure a lease as they are competing with up to 10 other prospective tenants to secure a lease to rent a property.
This is where the “rental insurance package for tenants” is such a popular service and product for a tenant, says De Waal.
CERTIFICATE OF GOOD STANDING
A tenant can apply upfront and online to obtain a certificate that validates him or her as a tenant with the affordability to pay the rental and as a tenant with “good standing” with reflection to previous rental agreements and payments.
This is similar to a “home loan pre-approval certificate” for a home buyer client.
IMPRESS THE LANDLORD
A landlord is thus more inclined to elect the 4ME Premium Rental Tenant for a lease, compared to a tenant that applies for a lease with no background to support such rental application.
THE IMPACT FOR RENT2BUY
The opportunity to offer the rental insurance once again to our Rent2buy Sellers is a major boost for the Rent2buy concept.
Our most recent large Rent2buy transaction concluded is for a property in Cape Town, City Bowl for R13 800 000.00.
In the Mill Park development in Bredasdorp, clients enter into a 24 month Rent To Own agreement, and 50% of their rental paid per month for the 24 month rental term is saved as a ‘deposit builder” that will be deducted from the purchase price on transfer.
HOW CAN I MAKE USE OF THIS SERVICE?
The rental guarantee service is available for all residential landlords and tenants.
To apply for the service and obtain more information, complete the “contact form”.
Click here to sign up https://www.mybondfitness.info/rentalinsurance
Meyer de Waal
09 November 2022.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)