Landlords have options about how they rent out their property, and tenants must contend with that choice. Each approach has its own set of benefits and challenges for both parties.
Private landlords
Private landlords are property owners who prefer a more personal relationship with their tenants, or who want to avoid the fees associated with agents or agencies.
Agent/agency rentals
Agents and agencies act as professionals managing rental activities on behalf of the landlord, typically in exchange for a fee. This arrangement offers landlords peace of mind, as agencies handle everything from tenant screening to marketing the property.
When working through an agency or agent, landlords benefit from an intermediary who is well-versed in rental laws and market conditions. Agents can set competitive rental prices, organize professional property photos, and draw up lease agreements that align with current regulations. The South African Property Practitioners Regulatory Authority (PPRA) provides guidelines on how agents can help landlords stay compliant with the law.
Tenants also benefit from using agencies. Many agencies maintain extensive listings across multiple suburbs, offer detailed property histories, and ensure that both landlords and tenants adhere to the law. For tenants seeking advice on tenant rights and rental processes, the Rental Housing Tribunal provides helpful resources.
Dealing directly with the agent
Benefits for the landlord
- Provides a buffer between landlord and tenant, and protects both parties if something goes wrong.
- Has best knowledge of the laws governing rentals, and stays abreast of any new developments that affect landlords and tenants.
- On behalf of the landlord, undertakes all due diligence and credit checks, vetting potential tenants.
- Will shortlist a number of ‘perfect’ tenants.
- Will set the right rental for the area.
- Can organise professional photographs of the property to increase appeal of the property.
- Draws up the lease agreement, and any special conditions the landlord may require.
- Attends to the renewal of lease agreements and timelines.
- Keeps and ensures the refund of deposits.
- Can attend to repairs and maintenance, even acquiring quotes for required work.
- Marketing costs are usually included in management fee, and the agent has experience of where to obtain the maximum exposure.
- May pay bills on the landlord’s behalf, such as municipal charges.
- Evictions can be handled by the agency, avoiding emotional confrontations.
Benefits for the tenant
- No need to deal directly with the landlord, keeping the relationship professional.
- Agencies generally have a wide range of properties on their books, across many suburbs, improving the options for renters.
- Agencies can provide statistics and history of both the property and the neighbourhood.
- Will act in the best interests of the tenant, and the landlord.
- Ensures that the landlord behaves in accordance with the law.
- Agencies/agents are always available and contactable, given it is their full time role.
Dealing directly with the landlord
Benefits for the landlord
- Can realise potential savings by not using an agent and pass those savings onto the tenant, meaning you may be able to charge a more competitive rental rate.
- Can develop a more personal relationship with the tenant.
- The landlord has a more vested interest in the tenant relative to the protection of the property.
Benefits for the tenant
- Can get on the same pages as the landlord from the get-go.
- Can overcome negotiation hurdles directly; eg: negotiating a lower rental, terms of lease term.
- Tenants have a direct line of communication with the landlord with immediate answers to queries.
- Viewings directly with the landlord provide an opportunity to explore future potential issues, maintenance schedules, any future renovations.
- Provides an opportunity to highlight why you will make a great tenant.
- Can negotiate for repairs or renovations, and timings of those.
- Landlords often don’t undertake credit checks.
Challenges for the landlord
- Has to navigate through legal complexities and stay up to date with property rental laws.
- Marketing costs for own account.
- May have to deal with angry, unreasonable or distressed tenants.
- Will have to undertake property inspections and viewings directly. Learn more.
- Can be time-consuming in terms of paperwork.
- Will need to source or design the right lease agreement.
- Will need to do own due diligence and credit checks on potential tenants, including checking references.
- Will need to handle evictions, if required.
- Must monitor tenant’s services bill directly. Learn more.
Challenges for the tenant
- Negotiations and communications may be slower than working through an agent, although the reverse may be applicable, depending on the tenant-landlord relationship.
- Scams are rife.
- May be discriminated against, unfairly.
- Will need some understanding of the law in terms of protecting your interests and rights as a tenant.
Frequently asked questions
1. Is it cheaper to rent directly from a landlord instead of using an agent?
Renting directly from a landlord can sometimes be cheaper, as there are no agency fees involved. However, agents provide services such as legal compliance, lease management, and dispute resolution, which may justify their costs.
2. What legal protections do tenants have when renting from a private landlord?
Tenants renting from a private landlord still have rights under the Rental Housing Act, including deposit protection and fair treatment. However, dealing with an agent may provide an extra layer of security as they are regulated by the PPRA.
3. Can a landlord evict a tenant without an agent?
Yes, a landlord can evict a tenant without an agent, but they must follow legal eviction procedures. The process involves serving proper notices and obtaining a court order if necessary.
4. How do I verify if a landlord or agent is legitimate?
For agents, check if they are registered with the PPRA. For private landlords, verify property ownership through the deeds office, request lease documentation, and be cautious of requests for upfront payments without proper contracts.
5. Who is responsible for property maintenance in a rental agreement?
Landlords are generally responsible for structural repairs and maintenance, while tenants must take care of day-to-day upkeep. When using an agent, they often facilitate maintenance requests and ensure compliance with lease terms.
