From homeowner to landlord – what South Africans need to know

Shifting from homeowner to landlord requires a shift in mindset, responsibilities, and priorities.

“Being a landlord is about balancing business savvy with a personal touch. You’re no longer just managing a property for yourself; you’re providing a home for someone else, which comes with a new set of responsibilities,” said Carrol Dell, Director and Head of Rentals at Real Estate Services.

Dell noted that as a homeowner, your property is a personal space, but as a landlord, it becomes a business asset.

The shift in perspective is critical because it affects how you make decisions about repairs, upgrades, and tenant interactions.

Although sentimental value may have influenced your choices as a homeowner, as a landlord it’s about balancing tenant satisfaction with long-term profitability.

Investing in durable finishes or energy-efficient upgrades may be costly upfront, but they can attract higher-quality tenants and reduce maintenance costs over time.

New Responsibilities come into play, which includes a host of new duties:

• Tenant Management: Finding reliable tenants is critical. Screening applications, conducting background checks, and signing leases are all part of the process. Once tenants move in, you’re responsible for maintaining a positive relationship while enforcing lease terms.

• Legal Compliance: Landlords must adhere to rental laws and regulations, including lease agreements, safety standards, and eviction protocols. Dell emphasizes, “Understanding the legal framework is essential. Ignorance isn’t an excuse, and missteps can lead to costly disputes.”

• Property Maintenance: While you may have let certain home repairs slide as a homeowner, tenants will expect timely fixes. Regular maintenance and proactive repairs are necessary to preserve the property’s value and keep tenants satisfied.

Moreover, rental properties come with financial perks, but also new challenges.

As a landlord, you’ll need to account for costs such as property insurance, taxes and maintenance expenses.

Moreover, setting aside a portion of rental income for unexpected repairs or vacancies is a crucial move.

Tracking income and expenses carefully is also necessary for tax purposes. Consulting a professional accountant may thus be a good move.

Landlords also need to strike a balance between professionalism and approachability.

Although one would want their tenants to feel comfortable and valued, they also need to maintain clear boundaries and enforce lease terms.

“Effective communication is at the heart of good tenant relationships,” said Dell.

“Responding to concerns promptly and being transparent about expectations creates trust and ensures smoother management.”

As the responsibilities of being a landlord can be overwhelming, many landlords thus choose to partner with property management companies.

Making the transition from homeowner to landlord is a huge step, but with the right preparation and mindset can be incredibly rewarding.

If the property is seen as a business asset, new responsibilities are embraced, and relationships are managed effectively, you’ll set yourself up for success.

“Becoming a landlord is a journey of growth. It challenges you to think strategically, act responsibly, and ultimately create opportunities for financial freedom,” said Carrol.

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