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Service Fees

Sellers

Choose to pay up front or when your sale is complete, fees are negotiable. Either way full service is included.

  • Property Consultation.
  • Photography, video and online 3D tour.
  • Floor Plan.
  • Listing On Our Partner Property Portals.
  • Viewing Scheduling.
  • Buyer Qualification.
  • Offer Negotiation.
  • Sales Progression To Completion.

Premium marketing options are available on most online property portals at an additional cost, your property professional will discuss these with you when preparing the marketing plan for your home.

Landlords

Full rental management –  10% excl VAT of rent collected for rentals under R22,000. A flat rate of R2,000 plus 1.5% excl VAT  when monthly rental exceeds R22,000.

We also offer a tenant procurement service –  you pay R7,500 excl VAT upfront or R15,000 excl VAT on signature of the lease agreement.

See  Property Management Flyer  for more information

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Maximise your rental returns

Best Rental Returns are achieved when you earn consistent and growing income and your property is well looked after.   To do this you need to;

  • Price Competitively.
  • Select tenants carefully.
  • Proactively manage relationships.

We help clients achieve excellent returns. Complete the form on this page, and we will be in touch.  Service Fees

Tenant Selection

We find you tenants that will pay the rent on time, look after your home as if it was their own, be a good neighbour and communicate well. Tenant selection is initially based on the credit / conduct profile of the applicant. We asess the applicants ability and willingness to pay and how they will look after your home.

We use PayProp – South Africa’s largest rental management system. Size matters because they aggregate data from hundreds of thousands of tenants and use it to build a model for establishing a  tenant profile.

We prefer to work with people that approach challenges that arise with a positive mindset. In talking with applicants throughout the marketing and application process we are looking for a person that is responsive to questions, offers information and is willing to discuss issues.

Tenant selection policy Sample tenant selection summary report

Proactive Tenant Management 

Having found a tenant for your property;  longterm rental success requires proactive tenant management.

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Proactive management begins by setting the level of expectation. We ensure that the tenant understands and commits to the conditions of the lease agreement. From there we ensure consistent application of the terms of the lease so as to maintain the conduct of the tenant at the level we expect.

Landlords to their part by ensuring the home is ready for rental – making it neat, clean and in a good state of repair. The message to the tenant is  – I take care of my home and I would like you to take just as good care of it.

  • We collect 2 months rent as a security deposit.
  • We record the condition of your home in great detail. And the Tenant signs off on the inspection document.
  • We visit the tenant regularly in the course of the year normally 3 times at least and more if necessary. We check to ensure that they are taking good care of your home and respond quickly to tenants reports of maintenance issues and ensure they are addressed as soon as possible.
  • We ensure that the rent is paid on or before time and deal quickly with even the slightest delay.

  We are always fair to tenants and make sure that we conduct our business inline with the lease agreement – We work hard to ensure that the Tenant does so as well.

Sample Inspection report

We help clients achieve excellent returns. Complete the form on this page, and we will be in touch.

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City of Cape Town Fixed Basic Charge for Utilities

The City of Cape Town in its 2018/2019 budget implemented a new method of charging for water and electricity services.

There is now a monthly Fixed Basic Charge for the supply of these services. Consumption based charges are still in place although for people using less that 600 units of electricity the cost per unit has been reduced to compensate somewhat for the implementation of the fixed basic charge.

The Fixed Basic Charge is related to the provision of municipal services to the property and is therefore  recoverable from the tenant in the same way that consumption based charges are recovered from the tenant.

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Cape Town rental market reality check

A quick review of articles online, reporting on Cape Town rental prices, turned up a range of  headlines.

Cape town rental prices skyrocket – Feb 2017

Rental markets are under pressure – Feb 2018 

Cape Town rental market to remain in the Doldrums – March 2018 

Southern suburbs rentals cheaper – May 2018 

In December 2017 segments of the rental market started showing signs of strain. By May / June this has become a prevalent feature in practically all markets we operate in – Only rentals below R8,000 are still holding up. We manage properties for clients from the City Bowl through to Plumstead and all markets are under sever strain.

Owners at the upper end of the market have in some cases accepted lower rentals this year than they were earning 2 years ago. The lower end of the market between R6k – 8k has been more resilient with landlords achieving increases of 5% on average.

The cause of the slow down is not down to one factor. Different market segments (Apartments / Houses, City Bowl /  Suburb, Premium / Standard ) are affected by a combination of factors.

  • Drought,
  • Tenant fatigue (arising from the strong run on CT rentals in the past few year),
  • New stock coming to the market,
  • Air B&B investors reverting to the long-term rental market following a poor year and
  • General economic and political uncertainty that has reduced enthusiasm.

The general consensus is that conditions will not change in the short term. Once the drought and politics / economics begin to move in the right direction we can expect property market to begin to shift.

We expect that the next 12 months will be a period of consolidation and reset in the market. This could take longer if there is not clear direction from the economy – we should look for GDP growth to improve considerably (2.5% to 3%) and to stabilise at that higher level before expecting a significant change.

In the meantime owners should be working to;

  • Keep their rental properties in good condition so that they are in ready for marketing when they need to find a tenant
  • Do everything possible to keep good tenants (tenants that pay well and look after the property nicely).
  • Price your property competitively when marketing or re-negotiating .
  • Ensure that your tenant vetting process is robust – the cost of taking on a bad tenant exceeds the benefit.
  • Ensure that current tenants are carefully managed.

Contact us for a free consultation if you are selling, renting or investing.

 

 

 

 

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Consumer Protection Act – application of notice periods and who is a consumer

An update from STBB attorneys highlights a case decided by the western Cape High court in March 2018.

Of relevance to landlords is that co-occupants enjoy the same rights under the CPA as tenants, and that provided 20 days notice of breach (allowing rectification) is given to the tenant / co occupiers the lease agreement can be cancelled if the breach is not remedied in the allowable time period,

the court was asked to decide if;

  1.  A co-occupant is a ‘consumer’ and could invoke the provisions of the Consumer Protection Act (CPA).
  2. The landlord was required to specify to the tenants that they had 20 days to remedy their breach or was it only necessary to afford a tenant 20 days within which to remedy the breach, before a lease may validly be cancelled.

The court decided that given the facts

  1. The co occupant was a consumer and was covered by the CPA
  2. There is no requirement, express or implied, that the consumer must be expressly notified of the fact that he has 20 business days to remedy his defect. The letter of cancellation can be delivered after the full 20 business days have elapsed after notice was properly delivered.

See STBB summary of judgement for more info

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Recommended Contractors

BEE Removal  – Lawrence Woollam – Bee Keeper and Handyman Tel:  082 898 3835.  Email:  lawrencewoollam@yahoo.co.uk

CLEANING – Pro cleaning 021 911 2630 or 083 303 9419

DSTV – Aer & Sat Services – Ian Povey   021 531-2968      Cell:  0837217781 / 0839826261    E-Mail:    poves@telkomsa.net

DOORS AND WINDOWS – Denzyl Koen (Panamera) 082 9670007 – repairs to doors, windows, sliding doors  – Wood, metal, aluminium

ELECTRIC GATES AND DOOR – Louis Nell is a guru on electric gates and garage doors 021 531 4323 or 072 231 2738

Budget garage doors – Aluminium outside doors and garage doors  www.budgetgaragedoors.co.za or 021 683 0050

FIRE PLACES – Lava Fires – all things fire – call them on 021 510 3896 0r Ray at 076 769 6077 – they provide excellent service and good value for money.

FLOORS – Dustless Floor Sanding – Eddy Koning 083 7000 880 very good service, professional finish.

HOME APPLIANCE SALES and REPAIRS – Fixitt Appliance Centre or Claremont Home appliances 021 671 5004

HOUSE INSPECTION SERVICES – HouseCheck

MOVERS – Go Gorilla movers – I have had several clients use their services and always had good reports on their service and value of money.

PAINTERS

RE SELL (furniture and bric a brak)

Thistle Cottage Collectables

Lisa – call her on 082 886 4855

Hofmeyr-Mills Auctioners

ROOFERS and WATERPROOFING

Scheltema – Phone 021 638 3121

Levenbach – Phone 021 799 3000

Prize – Phone 021 671 1343

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Sellers guide

We will structure our selling fee to optimise your net proceeds. Service fees

From the time you first think about a possible sale through to the EFT deposit into your bank account. There are may details to be taken care off. An expert agent can guide you through the process

Most banks require a 90 day notice period before bond cancellation, be sure to transfer any funds you need from your access facility before giving notice. Notice Rules for banks.

Pricing

To maximise your selling price within a reasonable time frame, you need to get the price right. The market determines the value of your home. You are the final arbiter because you will either accept or reject any offers.

Setting the appropriate marketing price for your home is challenging. Too low, and you leave money on the table. Too high, and you loose potential buyers who may think your property is out of their price range. Not only that but you will also help the competition sell faster.

Pricing your home right results in more exposure, more showings, more offers, and ultimately, the highest price for your home. To find the optimal price – one that achieves the highest selling price and minimises the time it takes to sell – requires strategic thinking.

Your home is an emotional asset—it’s hard to make the pricing decision objectively.

Agents spend their careers refining and mastering pricing strategies. We combine intimate local and national market knowledge, an exhaustive study of similar homes for sale,  an analysis of past sales and combine these with your unique needs to come up with the optimal listing price. Consult your property professional, for information about the housing market in your area.

Don’t “Test” the market with your price This is a post on a US blog site but it sets out the reasons for giving careful consideration to your pricing strategy.

Prepare to impress

The way you present your home is a vital part of achieving the best possible sale.  Buyers viewing your home, imagine themselves living there. You need to present your home in a way that allows them to do so.

The work required is to clean, declutter, make minor repairs and make sure that your home makes a great first impression. It is important not to waste money repairing something that will add little value but sometimes spending a little can change a lot – first impressions count. Contact us for a free pre listing consultation.

Get Noticed

With the right price and your home in showing condition its time to get the buyers to notice. 97% of homebuyers start their search on-line. It is vital to be promoted on the most visited websites and to show them great visuals and related information when you have their eyeballs.

We showcase your property on Property24.com and its many partner  websites. We create an interactive 3D Tour of your home. Sample 3D Tour

Negotiate a deal that works for

You are in control of the sale. You set the selling price for your home when you accept an offer .

When buyers make an offer it is important for the seller to consider the following

  • Wether the offer is lower or higher than you expected, keep an open mind. Make sure that you understand all the terms and conditions of the offer.
  • View the offer as the opening of a conversation between yourself and a committed buyer.
  • Consider your position in the market –  Do you hold all the cards? Are you on the back foot? Does the offer meet any or most of your requirements. Thoroughly understand where the offer does not meet your requirements.
  • Do you or your agent understand the buyers motivation?  How does the deal on the table stack up against their needs? Are there easy wins where you can meet their needs at little cost to you.
  • Keep the conversation moving – If necessary make a counter offer on the terms and conditions or the price or the dates – work the deal to the point where it achieves what you want. But you must be proactive buyers won’t sit around waiting.

Show me the Money

With an deal on the table it is very important to shepard the transaction through the finalisation and transfer process.

In most sale agreements there are suspensive conditions to be cleared, your agent should take a proactive role in ensuring that the conditions are met in the time allowed.  In the event that they are not met he/she must make sure that the necessary addenda to the agreement is signed so that the transaction does not lapse.

Finance must be arranged, Compliance Certificates, Rates and Levies Clearance certificates, Deposits collected and many other minor issues need to be tracked. Your agent will track these and try to ensure that transfer takes place on or as soon after the planned transfer date as possible.

Many sellers become very frustrated in this phase because the minutia of the sale are not properly managed by their agent and transfer can be delayed by weeks or months.

Sellers guide PDF.

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The Blues – Rondebosch / Claremont Property Market update Dec 2017

Intimate market knowledge is a critical aspect of the service an Estate Agent provides to clients. I track homes that come to the market in the Rondebosch / Claremont area and analyse their performance.

The issue is price expectations – sellers are pricing homes for the peak of the market and holding out for their price. They do not realise that the rate of price increases has been slowing for the past 5 quarters in the Southern Suburbs.

Buyers are holding back for a variety of reasons mainly because of affordability but also because of economic and political uncertainty. These influences are beyond the control of sellers.

This is not a doom and gloom situation;  prices are still rising but not as quickly as in the past.

The current market conditions create a situation where buyers have more choices and are not under pressure to make offers, the market has become a buyers market.

Now more than at any time in the past 4-5 years it is vital for sellers to appreciate that  Price + Presentation = Saleability

Price

Know what you are up against – Potential buyers are well informed;

  • They find out what properties were bought for.
  • They research how long properties have been on the market and use various websites to calculate a current valuation.
  • Buyers don’t have to visit a property to get a feel for what it offers. Most good agents provide internal and external photographs, floor plans and 360 degree video. There is little mystery left as to what is behind the front door.

How to get it right –

  • Be realistic about your selling price; ask a variety of agents for their perspectives and ignore ‘valuation flattery’ where an agent is overly optimistic to seduce you into a mandate.
  • Do your research into the competition – which other houses will your potential buyers be looking at and how does your property compare?
  • Be objective, see those houses and yours through “buyers’ eyes”, it can be difficult to be rational, so get others opinions.

Presentation

First impressions count – In every aspect of modern lives, presentation is critical – both for the photographs and 360 tours which potential buyers will view and for the actual physical viewings.

Get professional help – It is not advisable to spend a lot of money when selling, but unless your home is in a permanent state of perfection, which very few are, a small investment may help you to achieve your sale price, or achieve any sale at all.

Get a professional Agent or home stager to give you an objective second opinion and recommend where to put your time and effort in getting the presentation up to the required level for photographs and viewings. Simple things such as de-personalising your home to allow potential buyers to imagine themselves living there and decluttering to maximise space and appeal, can be crucial in securing a sale.

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Preparing yourself for a sale

All estate agents offer advice on how to prepare your home for a sale – Home Sellers Guide.

These guides however only address the work of preparing your home for a sale.

If you have been living in your home for several years, it is just as important (probably more so) that you prepare yourself and your family emotionally, financially and psychologically for the sale.

When we work with clients that are moving home after 20,30 or 40+ years in a home.  We find that it is far better to make a planned, considered move than to be forced by circumstances into an unplanned ill considered decision.  Even if you are not ready to make the decision in the next 12 months or so,  it is important to build momentum slowly and consistently and to put together a framework for how you would like the next move to work out.

Spruce.com is a great website offering loads of advice of what you should consider before moving.

You may also want to discuss the financial implications of a sale with a financial advisor / tax consultant.

Ticking boxes and checking finances is vital but it is just as important to focus your creative energy on your new home and the new life style that will come along with it. You should try to shift your mind, your dreams and your activities, even while staying in your old home. This will help you be better prepared for the move when you finally decide it is time and will help you to establish a clean break.

A recent blog post on Thinking about downsizing may also be useful.

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Unlock value by creating a second dwelling on your property

Retirees and empty-nesters can unlock value by selling or renting the second dwelling or by selling the right to construct a second dwelling. They can do so without having to move away from the suburb in which they have lived for many years.

The City of Cape Town’s Municipal bylaws grant an automatic right to build a second dwelling on almost all properties in Cape Town, no mater what the zoning.

It is best to consult professionals to assist with the process as there are numerous interacting regulations that must be adhered to.

You will need

Conveyancer – to conduct a deeds search to establish if there are any restrictive conditions in the title deeds. Restrictive conditions override zoning rights so they will have to be lifted before you can proceed.

Town planner – to help you to understand the regulations as they pertain to your property.

Architect – to prepare a site plan which optimize the opportunities.

You will have to decide if you will be selling freehold title or sectional title. There are pro’s / con’s to consider. Your estate agent and conveyancer can help you weigh them up. In most cases a sectional title scheme is the best option.

There is a great deal more to the entire process. Get in touch if you would like a free consultation.  We can also recommend experienced professionals that will assist you with all aspects of a project of this nature.