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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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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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Re-think downsizing

Your family home holds precious memories, but as your children grow up and move on to establish their own lives both near and far the question; what next? Inevitably comes up.

Downsizing can evoked negative feelings, but one can think of the change differently.

In her book Composing A Life, Mary Catherine Bateson reflects on how 5 of her friends went about remolding their  lives in their 50’s, 60’s and 70’s.  She likens the process to (amongst other things) the weaving of a tapestry where existing threads are woven together with new, creating new possibilities.

We should view the empty nester / downsizing phase of our lives in a similar way. The weaving together of a new way of living using threads and memories from the old.

Whatever you choose to call it, you are in the stage of life when, possibly for the first time, you can choose where to live based on your own dreams and desires and not because its close to school or has 5 bedrooms.

Your home will be an important part of the new tapestry you will be weaving.

If you need assistance with selling or buying a home please get in touch

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Fixtures and fitting – what goes and what stays? 

Information courtesy of the RE/MAX.co.za blog

Often when disputes arise between buyers and sellers, it is regarding an item of the home that was seen as a fixture, but was removed during the home sale process.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, it is for this reason that sale agreement between the two parties, otherwise referred to as the offer to purchase, needs to be clear regarding all aspects relating to the sale of the home. “It is not uncommon for a homeowner to have installed certain items in their home that they intend to take with them when they move. Even if the item is regarded as fixture, a seller is within their rights to take the item, provided the buyer is aware of the fact and is in agreement,” says Goslett. “Alternatively, if the agreement of sale excludes any specific item, the seller is entitled to remove it, which again points to the importance of ensuring that the sale agreement that covers all aspects clearly.”

He notes that disagreements occur when the sale agreement is vague and does not list the specific fixtures that will remain in the property. According to Goslett, the seller should prepare a list itemising exactly what is to be sold with the house prior to listing the property with an estate agent. “The list should be incorporated into the mandate to sell so that the agent can point out to potential buyers any items that will be removed by the seller at a later stage,” he says.

When it comes to fixtures and fittings, the general rule is that when a buyer purchases a property, they receive the land, the permanent physical improvements such as any buildings erected on the land, along with all items that are permanently attached to the improvements or buildings that are erected on the land. This includes all upgrades, fixtures and fittings of a permanent nature. This is why it is best to define what is regarded as permanent nature. According to Goslett, there are three aspects to consider when defining whether a fixture or fitting is of permanent nature:

    • The first aspect to establish is the intended nature and purpose of the item when it was attached. Is the item attached to the land or a structure erected on the land and does this item intend to serve the land on a permanent nature?
    • How was the item attached? If the item is attached to the degree that removing it would cause damage to the structure or land that it is attached to, then the item should remained fixed and be considered permanent.
    • The owner’s intention when attaching the item should be taken into account. If the intention of the owner was to permanently attach the item, then that should be given consideration.

According to Goslett, if an item is bolted, cemented, sown or planted and has taken root it is generally regarded as permanent. He points out that a contentious issue can arise when it comes to structures such as Wendy houses, pergolas or other similar structures. Goslett says that the seller should provide the buyer with plans if the structures are permanent and will remain on the property.

To avoid any confusion or disputes at a later stage, Goslett says that a basic clause regarding the fixtures and fittings should be included in the agreement of sale.

The clause should be similar to the following: The property is sold inclusive of all existing fixtures and fittings of a permanent nature, which the seller warrants are his/her exclusive property, fully paid for and in working condition, including but not limited to: the existing garden, trees, shrubs, plants, curtain rails, rods, pelmets, fitted carpets, the light fittings, stove and/or oven, hanging mirrors, towel racks, shelves, as well as special tap fittings, removable kitchen units, tennis court net, fireplace grate/blower, fitted kitchen storage units, awnings, post box, burglar alarm system, doorbell/knocker, the television aerial and accessories (if applicable), pool filter, pump and all cleaning equipment including automatic pool cleaner (whether fixed or movable, if applicable), swimming pool equipment, inner and outer door keys. “The more specific the clause is the better. This is to ensure that nothing is left open to interpretation by either party.

Taking the time and effort to include all fixtures when the sale agreement is drafted will help to avoid any frustration that could arise later on,” says Goslett, who notes that while there might be a verbal agreement between the two parties, if the agreement has not been reduced to writing it is very hard to prove anything at a later stage should the need arise. “Before placing their home on the market, a seller needs to carefully consider exactly what they are intending to include in the sale and perhaps remove items before the home is opened to buyers,” says Goslett, “However, if it is not feasible to remove the items beforehand it is imperative that there is an open channel of communication and the seller’s intentions are made clear to buyers from the outset. This will ensure that conflict is avoided by both parties,” he concludes.
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Plumbing, Electrical, Beetle and Gas Inspections

The seller is generally responsible fHome inspectionor providing compliance certificates in respect of Plumbing, Electrical, Beetle, Gas and Electric fencing. The obligation to provide these certificates can be waived or transferred to the seller in the sale agreement.

From time to time problems arise because buyers / sellers do not understand the scope of work carried out in preparing certificates.  The remainder of this post sets out the scope of work  for each of these certificates.

ELECTRICAL

What is inspected – The test is a visual, physical inspection and test of circuits, earthing and safety.

What do they look for – There must be electricity at the premises when the tests are performed. All rooms, outbuildings, garages and distribution boards must be accessible.  The test performed Electrical inspection – whats covered.  Appliances such as stoves, ovens, geysers, pool pumps, gate motors, door openers, globes are NOT tested. NOTE  All flex wire extensions, extension leads are deemed to be FIXED and will have to be rewired correctly. If possible remove any of these extensions before an inspection and do not replace them before transfer.

Who performs an electrical inspection – Electrical contractors registered with the Electrical Contractors Board (ECB) or the Department of Labour (DOL has taken over responsibility for this function from the ECB). Certificates supplied by unregistered contractors are invalid. Call 021 441 8172 to verify the registration of your contractor.

How long is an electrical compliance certificate valid – Certificates are valid for 2 years. If there have been any changes to the electrical installation (renovations or new light fittings installed) a new certificate is required or a certificate in respect of the changes can me attached to the initial certificate.

What happens if the property does not comply with the requirements of the regulations – The inspection company will provide a quote for the remedial work and once carried out they will issue a compliance certificate. If the home owner does not accept the quotation they remain responsible for the inspection fee – a certificate will not be issued.

It can happen that after a sale the buyer is concerned that the property is NOT compliant even though the seller has provided a certificate. In this event (provided the certificate was issued by a registered electrical contractor) the buyer should raise the issue with the the contractor.  The Electrical Approved Inspection Authority will provide resources to adjudicate disputes.

PLUMBING

What is inspected – Hot water Cylinder, water meter, storm water and pipework. The inspection is a visual inspection only.

Maintenance issues do not form part of the inspection – the inspection excludes – leaking waste pipes, cracked sanitary ware, missing taps, sewage and storm water blockages, leaking terminal fittings when open, pressure or flow issues.

What do they look for –

Hot water cylinder must comply with SANS 10252 and 10254 if installed after 2006. All must be done in metallic pipe except for temperature and pressure valves.

Water meter must stop registering when all terminal fittings are closed and must begin registering when one terminal valve is opened.

Ensure that no storm water runs into sewage lines – no down pipes into sewers, no paving sloping towards storm water

No lose pipework or terminal fittings – no lose pipe in roof space, no lose sanitary ware or garden taps and no cross connections between clean water and dirty water. i.e. no well points or boreholes corrected directly to council water.

Who performs a plumbing inspection – Registered plumbers, the certificate is only valid on the day of inspection.

What happens if the property does not comply with the requirements of the regulations – if the water meter is faulty the owner must report the fault to the city council and receive a reference number for the reported fault. If this is the only fault the plumbing certificate can be issued as the council has been advised. For all other faults the inspection company will provide a quote for the remedial work and once carried out they will issue a compliance certificate. If the home owner does not accept the quotation they remain responsible for the inspection fee – a certificate will not be issued.

BEETLE

What is inspected – All accessible wooden portions of the building are inspected. The inspection can only include  wood that is visible (wooden flooring under wall to wall carpets is NOT inspected).

What do they look for – Your deed of sale will provide clarity. The deed of sale should specify which types of beetle are included (it might only include Oxypleuris Nodien and Hylotrupes Bajulus) and can exclude wendy houses, picket fencing and other timber not forming part of the house. It is a good idea to make sure that the inspector has a copy of the relevant clause in the deed of sale so that the report covers exactly what is required.

Who performs a beetle inspection – Inspectors registered with the Department of Agriculture in terms of Act 36 of 1947.

What happens if the property does not comply with the requirements of the deed of sale – The inspection company will provide a quote for the remedial work and once carried out they will issue a compliance certificate. If the home owner does not accept the quotation they remain responsible for the inspection fee – a certificate will not be issued.

GAS

What is inspected – All Built in gas fires, braais, stoves, hot water systems and similar appliances. Any person selling a property with gas appliances installed must have a certificate of conformity.

What do they look for – Inspectors ensure that the gas installation complies with the specified regulations. The requirements vary for installations depending on whether the gas bottle is inside or outside. There are also regulations for the manner in which gas is piped behind cupboards and through walls. See Gas installations – drawings

Who performs a Gas inspection – Inspectors acting in terms of Regulation 17(3) of the pressure equipment regulations.

What happens if the property does not comply with the requirements of the regulation– The inspection company will provide a quote for the remedial work and once carried out they will issue a compliance certificate. If the home owner does not accept the quotation they remain responsible for the inspection fee – a certificate will not be issued.

ELECTRIC FENCE

The user of an electric fence installed after 1 October 2012 must have an electric fence compliance certificate which is issued by an approved electric fence installer. Transfer of any property after 1 October 2012 will require an electric fence certificate (not sectional title properties). The certificate is transferable provided no alterations have been made to the fence since the last certificate was issues.

COC Checklist

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What happens if a party to a sale passes away before transfer?

Sellers and Purchasers are unlikely to ever encounter this situation but it is handy to know where you stand in the event that you do.

If the Seller passes away after the offer has been accepted the sale agreement remains valid and should be upheld by the executor of the sellers estate.

If the Purchaser passes away, the executor of the estate has the option or choice to proceed with the purchase or not.

In any event the transfer is likely to be delayed somewhat while the executor is appointed and paperwork is set in order.

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Choosing Your Neighbourhood

Purchasing a home is an important,  long-term investment, it is vital to spend time doing research and finding out as much as possible about your new neighbourhood. There are several factors that make a neighbourhood and community what it is, and having an idea of what these factors are will provide buyers with a snapshot of what’s it will be like to live in that area. There are five aspects to consider when determining whether or not a neighbourhood is the right fit:

  1. Is the area an up-and-coming area or still in transition?

While home prices in a certain area could be relatively low now, there are several factors that could influence that in the future, such as upgrades or new amenities. When looking at the future potential of a neighbourhood, a buyer can start by researching the current home values and trends. Other aspects to consider would include the crime rate in the area, development plans and proposed or new businesses. A real estate professional specialising in the area will be able to provide some of the information, while other information can be obtained from local officials and the deeds office. Homes in a neighbourhood which is up-and-coming could prove to be a good investment.

  1. What are the schools like in the area?

Regardless of whether the buyer is in the life stage of having children or planning to have them in the future, schools have an impact an area’s price performance. Neighbourhoods with excellent, high-ranking schools will be sought-after and will tend to maintain higher resale values. School zoning generally only allows children living in proximity to the school to attend, which is why neighbourhoods with good schools experience consistent demand.

  1. What surrounds the area?

A buyer should have an idea of what is important to them and then explore the surrounding of the neighbourhood they are looking to buy in to see whether it matches their criteria. Things to keep in mind are proximity to amenities such as shopping malls, medical facilities, recreational facilities, parks or green spaces and schools. Aside from the fact that being close to amenities makes life easier and is more practical, these elements also make it easier to meet and interact with people within the community, set up play dates or walk the dog.

  1. Distance from work

Considering most people commute to and from work on a daily basis, the distance from home to the office is an important aspect to bear in mind. Potential buyers should time the commute by doing a test drive during the time of day they are most likely to go to and from work. Depending on where the property is situated, it may be a more feasible option for the buyer to explore other means of transport. In addition to offering an alternative to driving, good public transportation near a home can have a positive effect on the property’s value – the introduction of the Gautrain to areas in Pretoria, Sandton and Rosebank is a prime example.

  1. Is it Safe

Buyers should consider aspects of the area that make it a safer place to live, such as a neighbourhood watch, well-lit streets, walkways, security systems and little or no signs of vandalism. These are generally signs of a safe neighbourhood.

When buying a home, its location is a very important factor in the decision. The neighbourhood will largely determine the home’s appreciation value as well as the homeowner’s enjoyment of their time there. Selecting the right neighbourhood is as important for a buyer as is finding a home that fits all of their needs.

Safety and security are a top priority for the majority of South African property buyers. Buyers should consider aspects of the area that make it a safer place to live, such as a neighbourhood watch, well-lit streets, walkways, security systems and little or no signs of vandalism. These are generally signs of a safe neighbourhood. When buying a home, its location is a very important factor in the decision. The neighbourhood will largely determine the home’s appreciation value as well as the homeowner’s enjoyment of their time there. Selecting the right neighbourhood is as important for a buyer as is finding a home that fits all of their needs.

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Ownership of exclusive use areas – sectional title

exclusiveWhen purchasing or selling a sectional title property there are often Exclusive Use rights attached or claimed to be part of the sale.

Owners sometimes believe they have an Exclusive Right to use a piece of garden or a parking bay only to find that the “right” does not exist or is inadequately recorded. This can have a fundamental impact on the value of a section.  It is therefore important to ensure that one understands exactly how Exclusive Use rights are secured.

Exclusive Use of a particular area in a sectional title scheme can be recorded or defined in a number of ways, they are listed below.

Please consult a legal adviser with sectional title experience if necessary.

1. Notarial Deed – Exclusive Use rights recorded / transferred by notarial deed can’t be unilaterally removed. They can be sold, generally together with the sale of a sectional title unit or in certain instances they can be sold separately to the owner of another section.

2. Rule 27A – Exclusive use rights recorded in terms of 27A can be less secure than those on a notarial deed. Depending on the wording of the rule, changes may require unanimous consent of all the unit holders before a right can be altered. However if the wording does not require it then the voting rules of the Body Corporate (BC) would apply. An exclusive use right could under these circumstances be removed by a simple majority vote of members in a properly constituted meeting.

3. Right allocated by the Body Corporate – These are rights to use a part of the common property allocated by the BC or the trustees. These can be changed at anytime (provided the due process as defined in the BC rules is followed) normally by a decision of the trustees. Rights allocated in this manner obviously have less value than those allocated by Notarial Deed or a well written Rule 27A.

When purchasing a sectional title unit make sure you understand how the Exclusive Use rights are recorded. Avoid the unhappiness and stress related to finding out that your rights are not as secure as you had thought and the value of your investment is eroded.

Your sale agreement should make specific mention of the Exclusive Use rights transferred by notarial deed. Other Exclusive Use rights need not be specifically mentioned as long as the agreement includes ANY other Exclusive Use rights attached to the section.

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Levy Clearance Certificate’s

FetchImageA body corporate’s power to prevent the transfer of a unit if the seller owes money to the body corporate, is contained in section Section 15B(3)(a)(i)(aa) of the Sectional Titles Act, 95 of 1986 (the Act).

Levy clearance is an assurance from the trustees, or managing agent, that the owner does not owe any money.  This covers “all monies” not just “contributions”. This means that the body corporate may withhold the certificate until all costs or potential costs have been paid or an arrangement for payment has been made that is acceptable to the body corporate.

Section 15B(3)(a)(ii) also refers to a clearance certificate but it applies to developers who hold rights to extend the scheme in terms of section 25. Section 37(1)(bA) says the body corporate must charge the developer for any expenses it has in respect of the area subject to the future development rights.