Letting agent saves the day for happy client

Watch this video to see how Annemarie Stander, a rental agent at Terblanche Properties in the Garden Route, assisted a client in urgent need of a rental property.

How NOT to spend all your money this holiday

Don't break your piggy bank completely

Budget

• Write down your budget and make sure you will be able to meet all your usual financial obligations like your bond and car repayments, rates, and debit orders.
• Use only what is left for gifts and entertainment.
• Start buying your gifts and decorations now so that you can spread the cost over two months.
• Planning a holiday at the sea? Have a look at some affordable self-catering holiday units in the Garden Route.

Pace yourself

Most of us get paid early in December and there is always the temptation to spend your January money during the festive season. But this will mean that you can’t pay your bills and guarantees a bad start to the New Year.

Put away the money you will need for your January expenses, or pay your January bills early.

Stick to cash

• Work out how much you can afford to spend on gifts and stick to it.
• Put the money you plan on spending into an envelope and make sure this is all you have on you to spend. This will help you avoid the temptation of using your credit card once you’re in the shops.
• Do your shopping early so you are not rushed and pressurized into spending more than you initially budgeted for.

Be innovative

When it comes to gifts, think about small luxuries that people have stopped buying for themselves during these tough times, like a bunch of flowers or bath salts.

If your family is going to get together for a celebratory meal, let each family member contribute to the meal as their gift.

Have a serious look at your current expenses. For example, can you still aford your current rent or do you need to consider down scaling?

Be generous

The economy is struggling to recover so even if you are feeling the pinch there are others who are struggling to put a meal on the table. Give donations like food, clothing and toys to those in need so they can also feel the spirit of giving.

Original article

Win-win negotiations

Negotiation is about a win-win

In my mind, a successful negotiation is not where one side has pulverized the other. You don’t “win” a negotiation; you get the best possible outcome for your clients while doing the least harm. No one should leave a negotiation angry. After all, you never know when you might have to negotiate with the same people again.  When it comes to negotiating on behalf of Terblanche Total Property Solutions clients, I keep the following in mind:

Set the stage: I like a location that’s quiet, neutral, pleasant, and away from distractions and confusion.  It’s best if everyone turns off their devices, and refrains from calls or texts during negotiations.

Be prepared: I never enter without my homework. It astounds me to see how many estate agents “play it by ear”. I verify any outstanding facts before the negotiation begins. (Later fact-finding can cause a negotiation to bog down!)

Present a united front: As a property professional, I represent clients and have been hired to act on their wishes. At times I may not agree with their position, but I never share that with the other side. If I feel a client’s position is less than optimal, I only discuss it with them in private. Most people are quite reasonable if you provide them with facts.

Leave attitudes at the door: It’s very simple… treat everyone in the negotiation with respect, regardless of personal opinions. If anyone disagrees, disagree with the idea, not the person. Lose your cool and you’ve lost the business.

Watch non-verbal cues and body language: (Sorry, but I can’t reveal all of my secrets here… suffice it to say I take it all in!)

Hold something in reserve: I discuss concessions with my clients before hand and only offer these concessions when we absolutely need to concede something.

I don’t harp about points that don’t matter to my clients: Negotiations should never choke over a minor point.  I like to get agreement on major points such as price and terms and put lesser items aside to return to later. Again, if your only aim is to “win”, minor points could become potential deal breakers.

Never volunteer too much information: Knowledge is power in a negotiation. Telling the other side any information, however insignificant seeming, could weaken my clients’ position. On the other hand, I learn as much about the other side as I can.

If you ever need someone on your side in a real estate negotiation, feel free to contact one of the trained professionals at Terblanche Total Property Solutions.

Read all about it…

The TTPS Newsletter

One cannot open a newspaper anymore without some “expert” giving his two cents on the property market, it seems. Prices are going up, prices are going down, it’s the right time to buy, it’s the wrong time to buy, get in, get out, this area, that area…

It can be quite confusing. To help you make sense of it, our monthly electronic newsletter will provide you with the correct information when you need it. It is short, to the point and will help you to stay abreast of the latest developments in the property market. This is invaluable when you are looking to sell or let your property, or if you are looking to buy or rent property.

We respect your privacy and will never sell, share or disclose your email address. For more information about your privacy, check out our website.

So, if you want to impress people with your property knowledge or take charge of your property affairs, click here to subscribe!

Get professional assistance

If you think hiring a professional is expensive, wait untill you hire an amateur – Red Adair

Rental market looking stable

Rental payments must be managed

First quarter 2011 results released by TPN shows that 81% of tenants are in good standing with their rental payments. A tenant is in good standing when the tenant pays the full amount of the rental either on time or a few days late. Comparatively speaking, tenants are paying better in 2011 Q1 than the same period last year when only 78% of tenants were in good standing.

While it may be too soon to draw major conclusions from the data, it does seem as if tenants have learnt to budget better. The stable inflation rate environment and low interest rates may also be playing a role. South Africans have had to tighten their belts, and it seems we have done so.

The rental bracket between R3000 per month to R7000 per month still proves to have the best paying tenants with a full 84 of them in good standing. The bracket between R7000 and R12 000 follows closely with 82% of tenants in good standing. Tenants in the categories below R3000 and above R12 000 per month have further deteriorated to 75% and 74% respectively. Tenants in the Western and Eastern Cape continue to pay better than those in Kwazulu Natal and Gauteng.

We have always felt that the choice of letting agency is just as important as the choice of tenant. Make sure that you deal with a company with a proven track record and a valid fidelity fund certificate. As one of the leading letting agencies in the Garden Route, it is great to know that tenants placed by Terblanche Total Property Solutions are paying far better than the national averages. More than 98% of tenants placed by us are currently in good standing.

Wouldn’t you like to have those kind of statistics in your favour?

Rental property tax deductions

Ralf Metz’s book, Paying Less Tax Made Simple 2011, advises that SARS only allows you to claim the following deductions against your rental income:

• “The interest on your mortgage bond or loan raised against the property;
• Rates and taxes;
• Insurance;
• Repairs and maintenance costs – provided the property is in a lettable condition to start with and you entered into a lease agreement which requires you to make the repairs;
• Expenses incurred on the treatment of any timber against attack by beetles;
• Advertising;
• The cost of commission and rent collections;
• Electricity and water; and
• Depreciation of furniture if the property is let fully furnished.”

The cost of improvements, reconstructions or additions to the property cannot be deducted as these expenses are of a capital nature, says Metz. Neither will a deduction be allowed for repairs, says Metz, if you repair a property which was previously let and which you now want to occupy and sell. To get a deduction you will need to make the repairs while your property is being occupied for trade, adds Metz.

Also worth noting is that there is a very fine line of distinction between repairs and maintenance on the one hand and improvement and reconstruction on the other. Each case will be assessed on its merits.

*Based on a Moneyweb article

The state of the SA rental market – 3rd Quarter 2010

The Tenant Profile Network (TPN) recently released their report on the state of the South African rental market as at the end of the 3rd quarter of 2010. The report shows that tenants are generally still trying to settle their household debt and to bring household expenses under control. Tenants who paid on time increased marginally to 68%, but those who paid late declined to 13%. Tenants who only made partial payments increased to 9% and 10% of tenants made no payment at all.

Tenants in the bracket from R3000 to R7000 per month were the best payers. Those in the brackets below R3000 and above R12 000 continued to show weak payment performance with only 55% in the above R12000 bracket paying on time.

Tenants in the Western Cape and the Eastern Cape continued to make their landlords happier than their counterparts in Gauteng or Kwa-Zulu Natal. The Western Cape in particular delivered the lowest percentage of non-paying tenants in South Africa at 6%.

Historically, the December and especially the January rental payment trends decline significantly due to extraordinary holiday expenses. We encourage landlords to make sure they or their property managers act swiftly to limit bad debts.

If you’re looking for a professional property manager, e-mail us today for an obligation-free quote or check out our website for more information.

The link to the TPN Rental Payment Monitor 3rd Quarter 2010 is here.

Decorating for tenants

Renting out an apartment is a great way to ease the bond burden, particularly in these tough economic times. But choosing exactly how to decorate the apartment is critical. Bad judgement in the decorating scheme could easily see prospective tenants heading for the door. This is according to Caroline Coates, marketing manager of Upper Eastside in Woodstock.

She says that of the 225 apartments that form part of the R420-million Upper Eastside venture, seventy-five percent were buy-to-rent. “In addition to factors such as a convenient location, security, parking and great amenities; a well-decorated and maintained property is more likely to attract tenants and ensure regular rentals.”

Coates suggests setting a budget and time frame. “Consider whether it will be cheaper to do some of the work yourself or more cost effective and less stressful to employ a contractor. When deciding on a style, it’s important to think practically rather than personally. Aim to create a blank canvas where a tenant can imagine their belongings.”

According to Coates tenants generally look for a space that is clean, functional and modern. “Both the flooring and paint needs to be durable and easy to clean. Use wood, tiles, laminate or vinyl for flooring and high-quality acrylic paint for walls and ceilings. Plain and simple colours are easy to re-fill or touch up.”

While furnishing your rental property is not essential — unless it’s for short-term or holiday rentals — Coates believes that doing so could increase your rental income. “Supplying a stove, washing machine and fridge makes the space more attractive to tenants. Look for functional, hard-wearing items that would suit different needs like, say, a dining room table that could be used for entertaining by a young professional as well as a desk for someone working from home.”

“First impressions count so don’t forget about the exterior of the property. Maintain paint-work, windows and lighting. Rather than relying on the tenant or a service to care for your garden, choose low-maintenance options such as succulents in pots, stones and paving.”

Top five decor tips for buying-to-rent:

• Compile an inventory to help you keep track of the condition of your property and its contents.
• Paint is easier to maintain than wallpaper.
• Take expert advice on which paint to use — kitchens and bathrooms need mould and water resistant paint.
• Make a note of the name and brand of paint for touch-ups.
• Patterned carpets hide stains.

Renting 101

Kabous le Roux authored a good article on the basics of renting. We recommend all would-be tenants and landlords to educate themselves on the basics of property letting to ensure they know their respective rights and obligations.

A good agent will be able to provide indispensable advice and assistance in this regard. The agent should assist both landlord and owner with all the legal, practical and financial matters that are relevant to a lease agreement. This includes everything from the marketing of the property, showing the property to prospective tenants, doing the necessary credit and reference checks on a prospective tenant, getting a deposit from the tenant, getting the landlord and tenant to conclude a fair lease agreement, doing the necessary inspections, looking after property, taking care of tenants’ requests, collecting the rent etc. More than ever, it’s important to deal with professional and reputable agents.

The article can be see here.