South African Rental Market

Tickled pink

2010-06-15T14:30:00.001+02:00

10 years ago TPN was launched into the property industry. On the 24th May 2000 Northgate Properties took a leap of faith with us and signed up as our first member. They are still members – although they now operate from the Western Cape!

At that time our vision was for TPN to be a household name in the property industry; a brand that our members would be proud to use.

10 years on and these are some of the ways are brand is used:

I was tickled pink to read Selection Estates’ advert in the Property Trader. Selection Estates had a list of Rentals – but referred the reader to http://www.rentbay.co.za/ for more detailed information. RentBay is a TPN hosted free property rental listing website. (Did you know that TPN had 65,000 rental averts viewed by prospective tenants in May 2010.

Plovers Realty had the TPN affiliate logo enlarged to take up the entire front window of their shopfront.

We supply all our members with free TPN affiliated stickers for their property To Let boards, GB Properties took this concept one step further by incorporating the TPN affiliated logo into the print work of their boards.

I receive many emails from our members (too many to list), where our member has the TPN affiliated logo in their signature; or the TPN logo in their lease agreement, application form and other marketing.

Thank you, our members for the last 10 years; I am looking forward to sharing the next ten with you all!

Happy letting!

Take the time to be personal

2010-06-04T19:56:00.005+02:00

Last month Chris and I raced in the Ironman. We both had a great race, but I was a little ill afterwards. I spent sometime in the Netcare Hospitals in PE and Sunninghill. The Sunninghill Hospital doctors are amazing.

The doctor asked me where I was sore. I had already self diagnosed pneumonia and told him my chest and tummy hurt. Thankfully doctors take the time to actually examine their patients; some poking and prodding, a dozen blood tests, ultra sound and a CT scan later the doctor diagnosed a liver infection and fluid in my pelvic region. A strong course of antibiotics and I am as good as new.

But back to tenant, landlord and property manager relationships. Our crazy busy business lives sometimes mean we do not communicate properly with each other. And emails can sometimes have a way of hindering quality correspondence where we do not actually hear each other.

Think about an email thrashed out by an upset tenant or landlord or an email which has been summarised or maybe even slightly ambiguous. Sometimes it just makes more sense to pick up the phone and talk to the writer of the terse email. Or sometimes, as with my pneumonia self diagnosis where the doctor took the time for an examination, it might also be appropriate to take the time to call the writer, ask probing questions, hear the answer and respond to the “actual” issue.

Tonight I was involved in some terse email tennis. One of our suppliers got our order horribly wrong. After a week of curt emails, I was one email away from cancelling the contract. Before pulling the deal, as a last resort, I called the supplier. 15 minutes of actual talking and hearing each other’s perspective an entire week of frustration was resolved.

This is not a new lesson, but I am humble enough to be re-learn.

Stamp Duty Act

2010-05-21T09:40:00.002+02:00

I was recently asked again about stamp duties. In case you missed the previous media releases, the Stamp Duty Act was abolished on the 31 March 2009.

This means that no lease of any duration or rent value requires stamp duty. Please click on the SARS link to view the SARS website, where further media releases are available:

http://www.sars.gov.za/home.asp?pid=191

Media Releases 2009

SARS announces abolition of Stamp Duty

Abolition of Stamp Duty from 1 April 2009

PRETORIA 31 March 2009 – The South African Revenue Service is pleased to announce the abolition of the Stamp Duty Act (77 of 1968) with effect from midnight on 31 March 2009. The abolition forms part of the on-going efforts to reduce the administrative burden on taxpayers and to simplify the tax system.

The scrapping of the Act follows the whittling down of the scope of stamp duties over the past few years until only property leases of over five years required stamp duties to be paid. This is now done away with from 1 April 2009.

The scrapping of the Act is, however, not retrospective and taxpayers remain liable for stamp duties due up to 31 march 2009 and any outstanding stamp duties must still be paid.

Adhesive revenue stamps will only be demonetorized from 1 November 2009 to allow time for other government departments which utilize these to introduce alternative measures. After that date they may not be used for any purpose.

Holders of existing stocks of revenue stamps have until 31 October 2010 to claim a refund for the stamps from their nearest SARS branch.

Revenue franking machines will also be finally scrapped on 1 November 2009 and any value remaining on these machines can be refunded until 31 October 2010 at a SARS branch.

ENDS

Death of the tenant

2010-05-17T17:06:00.002+02:00

The death of the tenant does not dissolve the lease. The executor of the estate will manage the winding up of the estate including the lease; however the estate remains liable for the payment of rent. The landlord or estate agent will liaise with the executor for delivering the rental statement, collection of rent, handing over of the keys and the out going inspection. Any deposit refund due will be paid over to the deceased estate.

A practical example:
A tenant enters into a 12 month lease. Two months into the lease the tenant dies. The tenant was in the process of a divorce, but the divorce was not finalised. Both the tenant's wife and mother call the estate agent wanting access to the property.

The estate agent must wait until the court names the executor and liaise directly with the executor.

Confidentiality of the tenant’s credit profile

2010-05-08T15:01:00.002+02:00

I am often asked “can the estate agent show the tenant’s credit report to the landlord or to the tenant directly”

Landlord:
The estate agent is acting as an agent on the landlord’s behalf when placing a tenant. Part of placing the tenant is a risk assessment, achieved via the tenant’s credit report. Ultimately should the tenant default, the risk and loss is bourn by the landlord.

The landlord has a right to inspect the tenant’s credit report before deciding on whether or not they are happy to sign the lease agreement with the prospective tenant. In fact TPN recommends all estate agents present the tenant’s credit report with the application to lease to the landlord and that the tenant’s credit report is signed off at the same time the landlord signs the lease agreement.

Tenant:
The estate agent or landlord is not allowed to provide the tenant with a copy their own credit profile - however you may inform the tenant their application was declined due to bad credit on which ever credit bureau.

The tenant can contact TPN for further information and counselling regarding their credit profile.

Landlords beware - scamsters pose as world charity staffers

2010-04-19T16:46:00.002+02:00

One of TPN's members was scammed recently. Old scam but new spin - please click on this link to read the scam: Landlords Beware: http://www.tpn.co.za/website/clientzone/1059_0001.pdf

Follow up from our member indicates that this individual has been very busy in the B&B and hotel industry as well. I have copied and pasted Pat's follow-up for everyone's notice.

Hi Michelle,

I have been corresponding with several other owners of guest houses and b n
b's regarding this Harry Van Zyl.

As you can see below, Dr. Rupert has now advised of this scam as the
criminal was using his name and details too! What a cheek! Needless to say,
I am certain he will be found very soon, City Lodge and numerous other
places were also conned, always the same or similar story.

One guest lodge actually realised he was staying there last Friday (in
Sandhurst) when the owner saw the email scam warning, and she called the
police. Unfortunately the criminal jumped an 8 foot wall and got away, but
they do have CCTV pictures. He used a false ID number at the last lodge,
which also triggered a suspicion when the owner checked him out.

Thanks for your email regarding the media. I will keep you advised. Perhaps
you should put something about him in your blog or somewhere on your website
for the protection of other agents and owners who may also be duped.

National Credit Act - Regulation 19 (4)

2010-04-04T14:01:00.000+02:00

The estate agent industry has long been plagued with the reputation of “second hand car salesmen” – no disrespect to the motor industry either.

The underlying characteristics of estate agents, are perceived by the public to be commission hungry agents whose sole interest is renting the property to whoever the first prospective tenant is, without providing any of the additional after sales service support such as collecting the rent and paying same over timeously to the landlord, no inspections (regularly, or even incoming and outgoing), tardy communication and overall lacking any skills.

I know this sounds drastic – but – it is the perception of many landlords and tenants.

I can also vouch for the fact that the industry has started the clean-up process the Institute of Estate Agents SA is becoming more active, the education process and registration with the Estate Agents Affairs Board.

But I sound the warning bell to estate agents who take short cuts when using the services of credit bureaus. These short cuts undermine the very data hosted by credit bureaus and create an opportunity where delinquent tenants actually get way with “tenant from hell” behaviour.

The National Credit Act (NCA) is very specific – NCA Regulation 19 (4)

“All sources of information as set out in section 70 (2) of the Act and Regulation 18 (7) must give the consumer at least 20 business notice of its intention to submit the following adverse information concerning that person to a credit bureau:
(a) classification of consumer behaviour, including… “slow-payer”…
(b) classifications related to enforcement action taken by the credit provider… “

In short this means that before listing default information on any credit bureau, the estate agent must give the tenant 20 business day notice in writing of their intention to list this information on the various credit bureaus.

Failure to give this notice to the tenant by the estate agent could result in the tenant disputing the information with the credit bureau. The credit bureau will have no option but to delete this default should the estate agent not be able to provide a copy of the 20 business day notice of intention to list to the tenant.

The outcome of this dispute results in valuable default information being deleted from the tenant’s credit profile and the tenant is afforded the opportunity to enter the rental market place where unsuspecting rental agents and landlords could be taken for a ride again.

I appeal to all our members – please ensure you follow due process prior to adding default information. This shortcut only hampers our industry.

SMS credit enquiries

2010-04-02T10:09:00.003+02:00

Did you know that TPN members can perform enquiries via their cell phones?

SMS enquiry: 083 656 9480

SMS only the ID (do not put spaces or any other words into the SMS message) to 083 656 94080. Example:
7408301999081

Enquiries performed and returned: TPN, TransUnion and Experian

The SMS enquiry will send a summary report to the cell phone and email the full report at the same time. The enquiry is also stored in the Archive on the main menu.

A TU ID verification is performed by TPN to ensure we return the correct consumer's details. We also provide the Experian ID verification.

Standard SMS rates apply.

The cost of the enquiry is your standard enquiry cost with TPN.

Back to Basics

2010-03-30T16:29:00.001+02:00

Tip 7
Act Quickly
The longer a problem persists the more difficult it becomes to resolve. If the tenant is in arrears call immediately, the tenant’s budget might include more expenses than income - the supplier who pesters earliest and loudest usually gets paid first. The earlier a maintenance issue is resolved reduces the possibility of your tenant using this issue as a bargaining tool for non-payment.

Tip 8
Be stern but fair
Life inevitable deals complications. Your tenant’s hurdle could result in non-payment of rent. If this non-payment is a once off be reasonable, but take action. Insist the tenant signs an acknowledgement of debt and have a re-payment plan. If the non-payment of rent is an ongoing issue, cancel the lease early before the arrears have sky-rocketed.

Tip 9
Have Quality Service Providers
It is no mistake, successful people rely on quality service providers to perform specialised services. Have access to plumbers, electricians, property managers and credit bureaus that know their niche and can provide you with fast, reliable, honest work the first time round.

Back to Basics

2010-02-01T18:01:00.002+02:00

Tip 6
Communication
You will have more success with your tenant if you communicate regularly and fairly. This could be as simply as sending a monthly statement; or listening when the tenant has a maintenance issue and taking an appropriately speedy course of action to resolve.

TPN has seen a direct correlation to whether a tenant receives a monthly statement and the fact that the rent is paid in full and on time. This also denies the tenant the excuse of not paying because, “they did not receive the statement”. Also if there are additional charges the tenant can make the exact payment. Some tenants are forgetful. A tenant statement delivered before the payment due date is an excellent way of reminding the tenant about payment.

If your tenant is experiencing problems, they are also more likely to be upfront and talk to you when they know you have an open channel, listen and react fairly. I sign 12 month contracts with my tenants, but if the tenant has a problem and needs to be released from the contract, I do my best to facilitate this. I am up-front with the tenant that they are responsible for the rent should I not find a suitable replacement – but I also take the re-letting of the property as an urgent matter.

A recent true-life tenant dispute
My tenant was concerned about his high electricity bill. I could have:

Ignored him and told him to pay or move
Taken time to visit the property and personally checked the meter (switching on different appliances and watching the meter to see how it spun), sending an electrician to investigate if there was in fact a problem and finally reconciling the electricity account to the actual meter reading to find there had been an error in the billing.

Option 2 above obviously was very time consuming – but I discovered the tenant had been over-charged R1,100 over 8 months. Now I have a content grateful tenant who is more likely to remain a Paid on Time quality tenant.

A simple adage to finish this section, “Hard work pays off”

Back to Basics

2010-01-28T16:53:00.001+02:00

Tip 5
Keep yourself in the loop

It does not matter whether you have outsourced the property management to a letting agent of if you are managing the property yourself, this is your investment. Keep a monthly account of each property. Noting payments received and expenses made.

Successful businesses manage their accounts. Management financial statements are prepared monthly, the debtor’s age analysis is scrutinised vigilantly and debtors accounts kept in check. Reputable letting agents run their businesses with the same degree of business skill and maintain a focus on tenant collection.

Property investors who treat their property portfolio as a business, recording monthly accounts on each property’s income and expenses as well as cash flow will readily have the taxable income or expense available in order to make an informed decision should urgent maintenance be required. As an added bonus – filling in your tax return at year is pleasing painless.

Back to Basics

2010-01-27T17:15:00.000+02:00

Tip 4
Look after your Quality Tenant

Tip 4 is as important as Tip3. When you find a quality tenant, hold onto your quality tenant. Negotiate reduced rentals, no escalation or a small escalation. Maybe repaint the property – remember a well maintained property will attract quality tenants. And the maintenance is a tax saving.

In my experience, tenants who have been well looked after, who have moved on and later find themselves requiring rented accommodation, come back.

Follow through to the end, when the tenant vacates inspect the property, note damages and be fair about any claims and the cost. And finally refund the tenant their deposit as promptly as possible

Back to Basics

2010-01-26T10:31:00.002+02:00

Tip 3
Secure a Quality Tenant

A quality tenant will respect the property, pay the rent timeously and behave appropriately. Unfortunately some tenants have learnt to deceive landlords into believing they are a quality tenant by their smooth talking, fancy clothes or flashy car. A smarter solution is to use TPN’s tenant and credit profile system.

Every letting agent or landlord will have their own tenant acquisition policy, my own policy:

See an original copy of the ID document and make a copy
The tenant must sign an application form and complete in form in full including their affordability (income and expenses)
Collect supporting documentation (Copy of ID / Passport, Salary Slip, if the tenant has a saving account, 3 months bank statements. If the tenant has a current account I perform a bank code
Credit Reports: ID verification, TPN enquiry, TransUnion, Experian enquiry & a bank code.
All of the above for each adult occupant

My personal policy is I do not take on any prospective tenants with any negative data or where affordability is an issue (I include the utilities into the calculation for affordability).

Every adult occupant is required to sign the lease agreement jointly and severally.

Back to Basics

2010-01-25T09:57:00.001+02:00

Tip 2
Look after your Property

Have you ever walked into a brand new or refurbished house? Remember the fresh smell of paint or the sweet smell of Mr Min. Well maintained properties attract quality tenants. All properties deteriorate over time; a seasoned investor understands the power spending to maintain the property. Remember the money spent is a tax expense set off against the taxable income.

When I purchase a new property, I like to re-tile the whole unit or at least tile the carpeted area. Tiles are easier to manage when tenants move in & out. Tiles also have a longer life cycle and are less likely to look grubby when viewing the property to prospective tenants.

Many landlords who use the services of a letting agent do not visit the property regularly if at all. They rely on the letting agent to keep them informed about the condition of their property. Some damages can be claimed back from the exiting tenant’s deposit, but some investor maintenance will be required on an ongoing basis. The re-painting of the property or replacement of certain fixtures, I have purchased properties where the original 20 year oven was still in the unit with only 1 plate and the grill working. It is wise to spend a small annual amount, than wait 4 years down the line and burden the landlord with a large cash output.

Back to Basics

2010-01-22T08:57:00.002+02:00

The 2010 mood is certainly more positive than the previous 18 months. And the beginning of a new year provides a fresh start to review your strategy for your business and personal goals. There is no better time to take stock of our Property Investment goals. After-all we own property to increase our personal wealth either through a monthly income or capital growth.

Tip 1
What is your Plan of Action – Set your goals; Know your budget

It is no secret, people or businesses that excel have short, medium and log term plan of actions. They do no bumble through life hoping to “Arrive”.

January provides the perfect time to clean the slate and take stock. If you have not already done so, spend some quiet time making a list of the things you would like to achieve this year and most importantly a plan of how you intend arriving there. The plan of action is only the start. Set manageable monthly targets that you can review each and every month to make sure you are on track.

Rent Arrears

2010-01-11T14:05:00.000+02:00

Stress but don't feel alone if all your rents are still not collected.

It seems as if more tenants than usual are in arrears this January. A poll on IOL showed 52% of those polled did not receive a bonus. I guess tenants still went on holiday and had festive season expenses that were paid out of December's salary... rent it appears was not that high up on the of important payments for many tenants.

TPN has processed more Letters of demands in the last week than we did for an entire month of December.

Some details to note. The more contact information you have on the tenant, the better. Upfront, when entering into the contract, make sure you collect the cell number, work number, fax number, email address. If there are 2 or more adults, get all of their details. That way the tenant is less likely to avoid your attempt at communication. (Example: the tenant who knows your contact number and won't answer his cell phone when you call!) Call him at work.

When you send the TPN Letter of Demand, request delivery to the email, fax, post and SMS.... it is amazing how quickly the tenant will phone you back.

If the tenant claims "broke" and requests to pay this months rent with next month's payment. Send the tenant an Acknowledgement of Debt (AOD) and ask him to sign it with the agreed payment terms. This AOD is a very powerful document for you to have. If the tenant is sincere in his payment arrangements, he will sign and return the AOD to you. If not cancel the lease and demand the tenant vacate

Most important is communication. If you are the Landlord, communicate early with you tenant. Do not let the non-payment feaster. If you are the Letting Agent, communicate with the tenant AND with the Landlord. The Landlord is as keen as you are to hear what the tenant's payment situation / arrangements are.

Recommended supporting Docs for a tenant application

2009-12-02T11:34:00.000+02:00

TPN's recommendation to all our clients is the collection of supporting documentation prior to entering into a lease agreement:

1. Confirmation of Identity (ID / Passport / Company CIPRO documents)
2. Current Payslip
3. Current utility bill showing proof of address
4. Last 3 months bank statements
5. If lessee is a company / trust: surety signed by directors / trustees
6. Credit checks performed on Company (TPN, Scan on File and Bank Code)
7. Credit Checks performed on Individuals (TPN, TransUnion, Experian, Bank Code)

Note: Bank Code enquiries are recommended on Commercial / Retail or Industrial properties to let, Rentals greater than R12,000 per month of boarder line tenants)

Rental Payment Updater - Sory By function

2009-11-03T18:08:00.002+02:00

Quick system update.

The Rental Payment Updater now has a sort function.

When you login to TPN and select Rental Payment Updater your tenants are listed. On the bottom right hand corner of the tenants table is a "sort by" drop down selection. You can choose to sort your tenants by name, surname, rent amount, reference or address.

This should make the capturing of the monthly tenant Rental Payment Profiles much easier.

Happy renting.
Michelle

SYSTEM UPDATE (RPP SMS & BLACKLIST SMS

2009-10-15T12:10:00.002+02:00

We have updated the TPN system:

The Rental (Levy) Payment Profile SMS update (Paid on Time; Paid Late; Partial Payment or Did not Pay) is now delivered to all co-tenants on a lease. Previously it was only SMSed to Tenant 1).
When you Blacklist the tenant / levy owner, the system will automatically SMS your tenant / levy owner to advise them their credit profile has been negatively updated. I believe this SMS will encourage these tenant / levy owners to take action.

Communication is key when attempting to encourage payment from your tenants / levy owners.
We will continue to provide both of the above services at no cost to you.

Default Ratings - Ensure Accuracy

2009-09-01T10:08:00.004+02:00

The National Credit Act requires that all information listed on credit bureaux needs to be accurate.

This requirement is essential when choosing a default rating code at the point of listing a default tenant.

Example, the tenant is a late payer and you have sent a letter of demand or even handed the file over to the attorneys, but the tenant defiantly remains in the property without paying. You cannot choose the default ratting Absconded - because the tenant is still in the property. This rating would be inaccurate, should the tenant dispute the default listing with the credit bureau, we will be obliged to remove the listing due to it's inaccuracy.

Letters of Demand

2009-08-18T17:03:00.002+02:00

It feels like sometimes Property Managers are bombarded with too much regulation: EAAB Act, National Credit Act, Sectional Title Act, Rental Housing Act, Debt Collectors Act....

The National Credit Act (NCA) regulates credit bureaux and we need ensure our members are compliant. I would like to remind Property Managers and Landlords that before you are entitled to blacklist a tenant you must:

1. Issue a letter of demand which specifically states that should the account not be settled, your intention is to update adverse information on the credit bureau.

2. Wait a minimum of 20 business days from the date you sent the letter of demand stating your intention to blacklist.

If you blacklist the tenant without following the above steps and the tenant disputes the blacklisting with the credit bureau - TPN will be obliged to remove the adverse blacklisting from the tenant's profile.

The tenant could also have a damages claim against you which could result in you paying damages to the tenant. (Even if they do owe you outstanding rent)

How does the South African ID number work?

2009-07-25T14:52:00.006+02:00

Your South African ID number does not change and the first 10 digits are unique to you.

Example: 610731 0 094 0 82

610731 = my date of birth

0 = Individuals sex: Any number between 0-4 shows that I am a female, whereas any number between 5-9 indicates a male

094 = I was the 94th person registered at Home Affairs as a female born on 31st July 1961. If more than 999 individuals are registered on a particular birth date then the sex flag would be incremented by 1. eg: if I were the 89th male born & registered on a particular date, these middle numbers would read 5089, however, if I was the 1671st male born and registered on a particular date, the middle numbers would read 6671.

0 = I am a SA citizen (if I was a non-SA citizen this would be a 1) * Refer to notes below

82 = this is a check sum that passes the Home Affairs algorithm the make the ID number valid.

* When the third last number is a 2, this indicates that this individual has refugee status. If this individual stays in South Africa for an extended period of time, Home Affairs will later issue a second ID number when the status of the individual changes from refugee to non-SA citizen. The third last digit of the new id number will change from a 2 to a 1, and the last digit will change to meet the Home Affairs algorithm.

Understanding the composition of an individuals ID number is a critical step in preventing identity theft and reducing the risk of placing a bad tenant into your property.

TPN Credit Bureau Rental Monitor Q2 2009

2009-07-24T09:42:00.000+02:00

TPN releases the Q2 Rental Statistics, available by clicking here: TPN Rental Monitor Q2 2009.

One of the main drivers behind TPN Credit Bureau is the collection and reporting of tenant payment behaviour across all categories of tenants. Estate agents and investors managing a variety of property portfolios are better served to make educated decisions regarding client or property acquisition, collection policies or lease cancellation assessments.

Although the TPN rental payment trend mirrored the declining consumer credit trend into Q1 2009, we have however noted an improvement for the second quarter 2009. It is still too early to be certain, but declining interest rates putting more cash in the hands of tenants may have improved cash flow in terms of meeting non-credit expenses such as rent.

Thank you to all our valued contributing members for enabling TPN to put together our quarterly Rental Monitor.

For further information about TPN, contact us via our website http://www.tpn.co.za/

Debt Collectors Act - Update

2009-07-09T08:17:00.000+02:00

My previous post, Debt Collectors Act dated the 29th June 2009 refers.

I had a very encouraging meeting with Clive Ashpol from the Estate Agents Affairs Board (EAAB) on Monday regarding the EAAB’s position in terms of the Council of Debt Collectors finding that managing agents and estate agents need to be registered with the Council of Debt Collectors in order to collect arrear levy or rent.

In summary the EAAB falls under the Department of Trade and Industry (DTI) and the Council of Debt Collectors falls under the Ministry of Justice.

The EAAB are taking this issue very seriously. And together with the DTI, TPN, NAMA (National Association of Managing Agents) and JHI (representing the commercial property managers) we intend lobbying the Ministry of Justice for an exemption for estate agents and managing agents from the Debt Collectors Act.

Estate agents and managing agents are already regulated by the EAAB and the Estate Agents Affairs Act, have a code of conduct and have trust accounts. The Estate Agents Affairs Act is currently being re-drafted and the intention is to include a section on debt collection here.

We (EAAB, DTI, TPN, NAMA, & JHI) intend meeting in the next 2 weeks to plan away forward.

TPN will be the voice for our members and I would greatly appreciate any input from you. As always will keep you up to date with future developments.

For your reference, please see the links below:

· Press Release

· Finding by the Council of Debt Collectors

· Preliminary legal opinion

Debt Collectors Act

2009-06-29T14:29:00.000+02:00

The Council of Debt Collectors has made a finding which impacts Estate Agents and Managing Agents collecting arrear rent and / or levies.

For your ease of reference, I have included links below to the Press Release, the Finding by the Council of Debt Collectors and our preliminary legal opinion:

· Press Release

· Finding by the Council of Debt Collectors

· Preliminary legal opinion

The finding has been made by the Council of Debt Collectors and not the Court.

Practically, what the finding means for Estate Agents and Managing Agents is, in order to collect arrear rent or levies you need to be a registered debt collector and the fees you charge for collection services such as letter of demand are regulated in terms of the Debt Collection Act. Click here to view Council of Debt Collectors Regulated Fees

The crux of the finding is that Estate Agents and Managing Agents are in fact debt collectors and the main issue to be dealt with is excessive collection charges billed to tenants or levy accounts.

TPN Collections is a registered debt collector and the letter of demands sent via the TPN system is still a viable option. However each Estate Agent or Managing Agent who simple picks up the phone to make a demand for collection of arrear rent or levies is doing so as a debt collector who should be registered as such.

TPN has made contact with the Estate Agents Affairs Board. I will hopefully be in a position to feedback additional information shortly.

Fraud, ID Thefts and Skelms

2009-05-08T18:45:00.000+02:00

This is not a new scam but two TPN members got caught out this month.

The least costly way to learn a lesson is from someone else’s experience.

TPN member number 1 took a prospective tenant to view a property. The prospective tenant was a young mother with her two young children. The woman stated she would be staying in the property with her husband who was currently travelling. A few days later the young mom arrived at the estate agent’s office and requested the keys so she could show the property to her husband; she would “bring the keys back that afternoon”!!!!! The young mom and her children promptly moved into the property. When the estate agent called on the property to find out about the keys, the woman told the agent, “get a court order to evict me.”

Worse still, when the agent “locked” her out, she approached the Magistrate’s Court and got a court order allowing her back in the unit. She claimed to have a verbal agreement for 6 months at zero rent. The agent is now forced to take legal action to obtain an Eviction Order.

In a similar situation, a prospective tenant hit another TPN member the same way, “wanting to measure curtains for the new residence!”

TPN member number 2 took a prospective tenant to the property over the long weekend. The tenant wanted immediate occupation and paid the deposit and first months rent via internet transfer. The money did not show in the agent’s account – as it was a long weekend. The tenant provided proof of payment – a print out of her bank account showing the deposit to the agent’s bank details.

On Monday, the money still did not reflect in the agent’s bank account. The agent having performed a TPN enquiry on the TPN, called the other agents listed on the TPN Report. The other agents immediately advised this “tenant” had scammed them too.

TPN member number 2 has subsequently laid a charge of fraud along with the relevant Bank, whose details were used to show proof of payment. Worse still the bank account details provided did not belong to the tenant. This one seems to be ending well with the tenant now moving out this afternoon and will hopefully find new accommodation is our finest correction services facility.

The concern with this behaviour was that it was habitual and other TPN members had already been hit – Shame on you for not updating the system and alerting your peers.

TPN proudly launches rentbay

2009-02-11T10:42:00.000+02:00

TPN is proud to launch www.rentbay.co.za

Marketing, Advertising, Brand-awareness, Promoting, Selling, Renting

Any business leader will tell you when business conditions are tough you need to keep up your marketing and brand-awareness. Business is tough but it is not dead.

What better day to launch RentBay than Trevor Manual’s Budget Day. Now is the time to re-assess your marketing spend – you still need to advertise but spend your Rands wisely.

And what could provide better cost saving than our free rental listing website: RentBay

TPN was bombarded with requests last year to create a Property To Let website – we complied!

www.rentbay.co.za is a free website available to property managers and landlords to list their properties to let.
§ Unlimited listings
§ Add photos
§ Manage you own listings
§ Free Email feedback from interested potential tenants

It is as easy as opening www.rentbay.co.za – register your self online – and load your properties to let.

Happy Advertising!