The say, “first impressions last the longest”.
Imagine if you approach a landlord as a tenant to apply to rent an available property with this introduction:
MR/MRS LANDLORD – SELECT ME AS YOUR TENANT – I AM PRE-QUALIFIED!
“I am pre-qualified as a tenant; can I send you my pre-qualification certificate & arrange a viewing for your apartment/house?”
Even better when you can provide a certificate that your deposit is already paid into a secure deposit holding service -SDHS – that will be released on signature of the lease agreement.
Even better when your rental income also comes with a 2 or a 4-month rental protection cover.
Even better if all legal costs to evict a defaulting tenant are all included in the rental protection cover.
Even better if the landlord and tenant can schedule an online meeting to compare availability of schedules and arrange the viewing online with no back and forward telephone calls.
Even better if the landlord and tenant receive a reminder a few hours before the appointment to ensure no one misses the appointment.
Even better if the landlord receives a Tenant Information Pack with a picture of the tenant before the viewing to identify the tenant at the property to view.
Even better when the lease agreement is prepared electronically, aided by a qualified attorney for minor tweaks and ready for signature in real time, just after the parties agreed on the terms of the lease.
Even better when the entire rental management is processed every month for a competitive rate, and paid on time?
SERVICE & PRODUCT NOW AVAILABLE
“All these are now available as a service and product to landlords and tenants”says Meyer de Waal, a conveyancing attorney in Cape Town who co-developed the product and software with Jacques Theron of 4Me.
Imagine the peace of mind for a landlord that deals only with pre-approved tenants that provide a rental guarantee as well.
Imagine skipping the queue to be treated as a VIP tenant when you can provide all this comfort to your landlord when competing with 10 – 15 other applicants to rent a property.
With the hike in the prime lending rate from 7 % to 11.75 % fewer home loans are approved with the result that there is a huge demand for rental properties.
The big question remains for a landlord, “Can I trust my tenant to pay the rental every month and on time”.
For a tenant, the quest is to compete with 10 – 20 other tenants to secure a lease with a landlord.
We realized the need to provide a fast and efficient service for tenants who must compete against many other tenants.
The landlord often does not know how to select the best tenant and you end up drifting from one rental property, applying and then learn a few days later that your application was unsuccessful.
The same applies for landlords who show the rental property to between 10-20 potential tenants, but then must take a few days for background checks to be completed.
Strong potential tenants are often lost, while a tenant is being screened and then found with not the best credentials as the final tenant, says Theron.
HANDSHAKE BUT NO DEPOSIT
Often a tenant does a handshake agreement with the landlord or letting agent to confirm, “Yes I am taking this apartment”, but then disappears when the deposit must be paid.
The landlord then loses out to secure a lease with the other interested tenants while chasing after the deposit of the first tenant.
The secure deposit holding service -SDHS eliminates chasing after a deposit.
TECHNOLOGY NOW AVAILABLE
“In 2016, we spearheaded the development of an online home loan indicator. This is a game changer in the mortgage industry” says De Waal.
This software and product are so accurate in the mortgage origination industry that a leading mortgage originator took hands with us to fine-tune the product. This software and product are so accurate in the mortgage origination industry that a leading mortgage originator partnered with us to fine-tune the product.
This mortgage origination company directs between 7 000 – 10 000 potential buyers through the system per month.
Many property developers are not willing to sign an Offer to Purchase submitted by a buyer, if such an online prequalification certificate is not attached as part of the supporting documents.
Over 350 000 online applications were received and processed since the implementation of this software.
The Bond Indicator certificate saves time and money.
NOW AVAILABLE IN THE TENANT MARKET
The same technology is now available for the tenant market says Theron.
We approached De Waal to work together.
We linked up with TPN to extract a tenant payment profile.
If a good behaviour score is received, the tenant is then directed to link up his bank account with our software that will assist the tenant in real time to obtain a budget analysis of spending.
Our software maps and identifies the categories of spending of the customer and then prepares a budget.
The rental certificate is produced in real time to provide an accurate estimate of the rental the tenant can pay.
The tenant can then pay the deposit available – usually equal to one month’s rental into the trust account of an attorney.
20 Attorney firms that are all members of the Attorney Realtor Hub network with a national footprint are available to provide such assistance.
Once the lease is concluded, the rental deposit can be further invested for the lease agreement or paid over to the rental guarantee service
The deposit is underwritten by the FFC – fidelity fund certificate of the participating Attorney Realtor Hub firm that is a member of the Legal Practice Council and earns interest for the tenant.
The landlord can select which rental guarantee & legal costs protection package to add to the rental agreement.
To enquire how this can assist – click here.
Meyer de Waal
Landline: 021 461 0065
Mobile 083 653 6975
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&O