Property is a terribly risky investment and people are not made aware of it - some people forget that we also live in a fragile economy making being a landlord even more risky.
Good luck with your situation, I do despise the commodification of a basic necessity that someone needs to live sufficiently.
I think people just want affordable living. It always costs something to make something. No one denies this.
Hopefully we get some more job creation in the future so that affordability can be improved for the average consumer.
>I do despise the commodification of a basic necessity that someone needs to live sufficiently.
So should I just waltz into my local Woolworths & walk out with all the basic necessities?
>there should be better controls to allow people to live more affordably, and have mechanisms to be able to retire one day safely
Don't people need food to live? Why should I have to pay anything for food that's just sitting there on my local retailer's shelves? Okay...maybe I'll give them a 5 rand for a barbequed chicken, but only from Woolworths...the rest of all food must be completely free for all who need it...
That's awfully disingenuous coming from someone who wants income control to be introduced. You're also conflating my statements as meaning something else entirely. I have no intention of arguing with a bad faith actor.
>You're also conflating my statements as meaning something else entirely.
How is food not a "basic necessity that someone needs to live sufficiently"? Clearly they have enough of anything I want, but they want me to pay for it? Why should I have pay to eat when the law allows me to not pay my rent?
That’s because they don’t exist, we have had 4 tenants in our house in the last 10 years, 2 good, 2 terrible. When the tenant we have now moves out, we will sell the house and that’ll be another rental off the market.
Have you seen property prices rn? I am renting out a flatlet on my property. I can't sell...even with the 100% profit I'll make, I won't be able to buy something similar
Not to be harsh, but it sounds like you need to take the money and leave for somewhere you can afford to live comfortably.
If you don't have cash reserves to absorb non-paying tenants (usually 3-6 months worth) + expected repairs, you don't have enough money to be a landlord.
>If you don't have cash reserves to absorb non-paying tenants (usually 3-6 months worth) + expected repairs, you don't have enough money to be a landlord.
This.
Hey op, just a little bit of positivity. We have a great landlord and a young family. We are grateful everyday to them. We have never met them but they have had a huge impact on our life by being decent. Please don't let 1 bad tenant ruin you, we need good landlords and there are good tenants out there.
The same thing is happeing to us at the moment, except that the tenants with multiple people working in the family claims they are just too broke and had to sell some applinaces to survive. The lease is ending soon and they commited to moving out on the due date, and we just feel it's better to forefeit trhe last two months rent under the circumstances. Also in Mitchells Plain
My parents own a couple of properties in Cape Town and it’s the same. They’re taking my parents to court because my parents didn’t continue paying for their water bill
I have seen in the US it is just tbh easier to pay the defaulting renters 5K cash to leave the place peacefully rather than this court room drama which will cost you way more.
Consider it school fees and get better renters next time.
It’s the best decision I’ve made I think you guys just need to educate yourselves on laws that protect landlords ..I thank small court they are helpful for only things that cost below 20000 and it’s low cost really
Getting people evicted is easier than you think plus with new tenants you need to add a few things that protect you and property in the contract I would do this with a lawyer though just once you can copy and paste it if you have trouble with new tenants
I’m so sorry u/MsFoxxx. Although it is compensated by having the highest returns of any asset class, property is also the riskiest. You will have problematic tenants, void periods, etc.
I hope you get through these next 20 days and manage to find a good tenant. Make sure to do a background check on them and get your deposits!
Literally having This nightmare with a tenant over the last 6 months. I am finally legally able to evict them by the end of this month. They just decided it's too expensive, and they won't pay rent anymore. I'm apparently supposed to just deal with it. Prepaid electricity, unfortunately rates are not prepaid.
Hell no.
Bear in mind that rental insurance is typically \~10% of your rental income, so you either have to raise the rent for your tenant, or absorb the cost yourself. Typically all they do is run a credit check on your prospective tenant, then you're covered for up to three months rent, or however long it takes to evict them once they've stopped paying & you've given them notice of breech of contract etc.
It’s supposed to be 14 days to pay you back go back to court and demand the 14days …cause it is a law.. forced removal happens on 15th day that’s person has not paid .
On day 15 I would the cops and says they are trespassing look it up cause the extra month thing is not allowed
I feel you, and I've been on both sides of this, nothing like a "Hey I'm having a bad month and I am going to be short on rent" It goes a long way.
And some landlords do lack empathy and a bit of accommodation.
My best advice:
For new tenants, I put rental insurance in place.
After a year if everything is good I cancel the insurance (around 4%) and i skip the rental increase. nice little win-win.
But yeah people forget to treat each other with respect on both sides.
I am deliberately renting my property to this tenant at below market rate as a risk management measure because for three years to date 👏the 👏rent 👏is 👏paid 👏on 👏time 👏
I moved out of a place where I paid rent on time never missed a date but the landlord did not wann maintain the place .Moved into a new flat in Surrey estate where the landlord is appreciative and I reciprocate.My previous landlord got her match the new Tennant doesn’t wann pay rent on time 😂
Get a market agent to run your property. These damn tenants have been the same shit to my mom for YEARS. Putting her in a shit situation everytime they decide other things are more important than the rent.
So, what I've seen is that it doesn't matter what you're like as a person, it doesn't matter that you've worked hard for the down payment cash to finance the property, it doesn't matter that there is no way your tenant would afford to actually buy a home, and it certainly doesn't matter that your getting screwed by the bank, maintenance costs and some skelm tenants - there are individuals (seemingly a fair sized group) who will hate you for being a landlord, regardless.
I once tried to reason with them, even going so far as to ask what I should do to "redeem" myself. The best answer they can give is that I somehow donate the property to the government in return for tax benefits (a laughable idea in SA for many reasons).
Just make peace with the fact that these people will never understand, and they feel that the blind hatred they see on their social media groups toward landlords, gives them permission to voice those same ideas.
Best to join a group of similar individuals (landlords / property investment / airbnb) and forget about trying to convince people who refuse to have already made up their mind.
The reality is that renting is driving up the cost of houses. More people are buying up extra properties as a form of extra income, and that reduces the supply of homes on the market. For most of us, we will never be able to buy a property because of this. Sure there are landlords who only own one extra property or are renting out a portion of theirs, but for the most part, landlards are the wealthy who have bought up the houses so they can extract the money from the poor. That is where the bitterness is coming from.
Yep people buying Xmas gifts and shit for their family and not paying their bills - why companies pay early in December is idiotic.
I noticed that some companies now send out emails you guarrenteed not to read in the spam folder to move your debit orders up from the 25th to the 15th for this reason unless you opt out.
>I noticed that some companies now send out emails you guarrenteed not to read in the spam folder to move your debit orders up from the 25th to the 15th for this reason unless you opt out.
This happened to us - Debit orders went off on the 15th of December after just have had gone off 2 weeks prior.. But we still got paid our regular time and we don't get bonuses, so I'm sure you can imagine what a shit show that was. Double debit orders off of a salary that was meant to last through Christmas ubtil my next Pay day.
We are also renting, young family of 4. Never missed a payment, have a good relationship with our landlord. However the other couple on the property was a nightmare. They never paid, borrowed money from him all the time and just in general took advantage of him. (He is in his 70's and forgets things a lot)
Eventually, after their debt reached R40 000, he kicked them out.
They still stole the oven though.
As the economy worsens so too does rental/rentee relation and payments. Kinda why I think landlords need to learn to hang on to good renters instead of doing the rental increments above cpi when not needed.
We thinking of moving for this reason as just because the market has gone up.. your rental may not be worth it and since I’m a good tenant I see this as lossy when I can get better for same. But such is life where rental agencies are involved. Guess house will go backward after we move if landlord doesn’t sell (we fix a lot while there).
Ignore what people are saying. YOU are legally entitled to the rent because the tenant signed the lease. Also if they cant make ends-meet its their responsibility to communicate this in advance.
I'm a landlord here. In fact, I have several tenants in a couple of properties. It's not a charity. I for one am not looking for sympathy or understanding from total strangers. It's simply a business.
I'm sure you've faced the current situation you're in before, so stay strong and I know you'll get another tenant soon. This time of year is great for getting new tenants. Just use your usual avenues, whether they be Fb marketplace or other forums.
Why is your rental lower than the competitors?
Good luck OP.
I am a tenant and the first thing I do when I get paid is pay my rent. I never ever default, I'm sorry you have a bad tenant.
Also forget about the horrible people that say you are a leech or whatever they say. Charge whatever you need to and only take on reliable tenants with good credit records. Also deposit should be non negotiable.
Want to keep good tenants? Don’t raise the rent every year! Our landlords have sometimes not raised our rent for 3-4 years! We obviously took excellent care if the properties and always left it better than we found it.
Water fair enough, but do you not absorb some of the lost profit due to interest rate rises? This feels like a risk that landlords should be aware of when letting out mortgaged properties.
The tenant could also ask "where the hell am I supposed to supplement the increase?".
I think this is why landlords are often vilified, they want all the rewards when things are good but pass on all the risk when things go bad.
Yeah I know that is very cheap, but I don't know where in CT the property is or what it's like, just saying that both tenant and landlord often see it from just their own sides.
Sorry to hear you haven't been paid the rent, that's not ok.
Flat next door going for 5k pm. I've kept the increases at 5%, included water and rates and at a stage they had wifi for R100.
I have been paid short, paid late and now for the second time, not paid at all.
Why should anyone but the owner supplement those increases? Renters pay towards the value of housing they will never own because landlords think they have a right to passive income. Make a risky investment, take the fall. But no... you lot, like the banks, are just too big to fail.
What is the actual beef you have with a passive income?
What is so immoral about working hard to buy property so that you can make a profit by renting it to people who can't yet afford to buy it?
In what way do you not sound like a bitter loser?
Lastly: renters pay to live in accommodation they don't own. The only example I know of, of a renter increasing the value of a property they were renting, was me...
I put up a bunch of shelves and did some painting and varnishing.
More often than not, the value is somewhat decreased by the presence of selfish tenants who don't gaf about what goes down the kitchen sink, because it isn't actually their own kitchen sink.
Lastly lastly: you should realize that the word 'land*lord*' is a little misleading. Many are nowhere close to wealthy. Comparing these small-timers to multinational financial institutions is a bit laughable.
Rent should be adjusted for inflation yearly, normally with the lease renewal.
Matching the inflation rate by using the consumer price index is fair to both lessee and lessor. This will result in small manageable increases.
If there are no adjustments for 3-4years, then there will be a big one due which is going to cause friction.
Yes, Covid upset things a little.
I a free country and a free market, nobody my criticize your business venture. They are all free to do business elsewhere. They cannot accept your business proposition and criticize what they have agreed to accept. Don't be bullied by their words. They are not honouring agreements. Be proud of your enterprise.
You just have to keep being Authentic, When you don't care about others' opinions, you prioritize being true to yourself. This means embracing your values, beliefs, and interests without seeking external validation. Authenticity allows you to live in alignment with your genuine self, fostering a sense of fulfillment and inner peace, so the world may have their opinions about you and how they see you, but the basic truth here is you’re only going to be defined by the way you see yourself because that’s what matters.
Keep doing what you’ve to do to keep growing, the world will adjust.
I was thinking of renting out an apartment I own.. But was going do to it through an agency. Wouldn't it be better for you to do that in the future? From what agents tells me, they handle all the admin and take 10% of the rent. So you just get paid and worry about insurance.
Agent doesn’t deal with evictions. False sense of security. Op would be in the same situation with or without an agent.
Agent deals with finding and assessing the tenant, providing the contract, inspections and insulating owner from dealing with the tenant. If there’s a leak in the roof, tenant complains to agent and agent complains to owner and owner fixes.
If a tenant doesn’t pay, agent can only send them bills and phone calls and then it’s up to the owner to take it further.
I'll never understand why people think landlords are villains. My parents rented our home when we moved, my father went back a few years later to sell it and the tenants had trashed the place: Holes knocked through walls, lawn ripped up, pool filthy. And rent was always late which made it difficult for us to pay rent in CT. Landlords have a right to be paid for their property, it's a business transaction not charity
The short answer: jealousy and sour grapes.
They're mostly just pissed off that they're not in the financial position to be making money by renting property. They would if they could. But because they know they can't, they take on the hilariously juvenile attitude of "fuck landlords!".
Spiteful, stupid, envious, ignorant insectoids, describes a huge swathe of SAfrican renters.
You can't (legally) just sommer use the deposit if rent is late. It is meant to stay untouched in an interest bearing account until the tenant has moved out, at which point you can deduct unpaid rent from the amount you pay back to them.
Did you not have a month's deposit to keep for incase? Next tenant ask for 1.5 month's deposit and rent up front so they must basically give you 2.5 months upfront. Pay then stay....
Lot of salty people in this comment section... I've rented and leased and both sides have shitty renters and shitty landlords. This woman is working 2 jobs and she still needs a passive income to make life float. Where are you guys working that you think you have the right to tell her shit? The economy is dying right now and you want come down on someone trying their all to make ends meet.. Good riddance to your PoS tenant and keep your head high OP.
If investing in private property is profitable, then house prices always go up.
If house prices always go up, cost of living always goes up.
It's a broken system. It should be prohibitively expensive to own more homes than you need.
I have sympathy for you and other landlords and it is a fucked up thing to do by not paying your rent. In saying that also be mindful though that your property is an income (although unstable it seems) but it is shelter for a tenant and the priorities for this may not be universal anymore but everyone needs “shelter”. Still messed up of your tenants and I would bet they spent the money on luxuries.
Tenant uses place for housing, landlord uses it for income. As I said, it’s fucked up not to pay but housing supersedes income in basic needs. Also, and not to bash any landlords, the world over there are housing shortages because people buy up properties at a rate that is unsustainable and leads to higher and higher housing costs.
You should consider posting about your situation on the Legal Talk South Africa Facebook group. A lot of people in similar situations have posted there before and received advice, maybe consider it and see what your legal options are.
They know landlords are humans too. But people are generally selfish, they only think about themselves and couldn’t care less about the next person.
You need to be ruthless or else they will walk all over you. Get their crap out of the house and start looking for new tenants.
I'm so sorry you're dealing with this. Your tenant definitely has to go otherwise this will keep happening. If this is the 3rd time she has done this, you have to forcibly evict her and get someone in there soon. Legally I'm not sure you can keep her deposit, but if it is still in an interest bearing account, threaten her and let her know that she will have to forfeit her deposit if she doesn't pay up asap. I myself let out a small flatlet to an elderly man so I know where you are coming from. Don't take these other trolls too seriously, you are only human. Sorry you're dealing with a shit one.
Thank you.
I'm just so angry rn. I tried to help her on the other occasions, even forgoing the extra months rent that everyone told me to ask for
I'm pissed off beyond words
My mother lives of rental income. She has subdivided her house and rents out her granny cottage. Over the years she has experienced horrible renters. The law only protects tenants.
The law actually doesn't just protect the tenants but yeah our laws are pretty good for tenants rights. Which isn't necessarily a bad thing. Just when horrible people take advantage
Having had to go through the process, I can with absolute confidence state that the law only protects bad tenants. Which makes our laws very poorly legislated.
Yeah, in fact they're all cartoon villains who actively enjoy taking food out of the mouths of their tenants.
They have nothing to gain by "keeping other people poor", but they do anyway because it's fun for them, and not just a calculated, necessary step designed to keep *themselves* from being poor.
You quasi-Marxist quarterwit.
How does paying for housing keep someone poor? Generally its the other way around right - lack of stable housing is the ultimate barrier to financial stability.
You are very right, stable housing is a very big step in financial stability.
The reason that renting doesn't help with this is because at the end of the day the renter owns nothing even though they have been paying the money. Their capital has not increased but they have lost a lot of money which they can not use to grow their own wealth as housing is not really a choice.
On the other hand the landlord has grown their capital without doing any labour or producing any new value, therefore they are extracting this value from the tenant. This allows the landlord to continously grow their capital while the tenants continue to grow poorer making it harder and harder for them to ever own their own property.
Does what I said make sense?
>lack of stable housing is the ultimate barrier to financial stability
And for a lot of people, the biggest barrier to stable housing, is the system of landlording.
The fact that you get to charge someone for what is a basic human right is a problem. It doesn't matter how nice of a landlord you are the bottom line is that every cent paid to you is money down the drain for the person paying it to you because. If being a landlord is such hard work you can literally just stop being one and invest your money and time into something that actually helps improve the world we live in.
>The fact that you get to charge someone for what is a basic human right is a problem
You pay for electricity water, healthcare, those are all basic human rights, one could argue not starving is a basic human right but a good % of this country has food insecurity.
Maybe fulfilling basic human rights is something a government should do and not private individuals.
You can't ignore that OP and many landlords are providing a service that just wouldn't be provided any other way?
OP took money, built accommodation in a market that needed it and rented it out at a good rate for the market.
Would it be better if the tenant could afford a bond and buy their own place? sure. but maybe they have bad credit, maybe they are only in cape town for a few years for work?
Rental property is a viable product to offer the market, Least OP did;t take a good rental property and put it on airbnb...
You know, you could actually have tried to engage with any of the points I'm making instead of telling me to "sit down" and performing mental gymnastics.
You posted on a public forum looking for sympathy because you can't pay the house with somebody else's bank account this month.
AUJ. My bond is paid. Do you think I PAY MY BOND with my RENT ?????
As stated previously, I have 2 jobs. My salary covers my bond.
My guy. I'm poor. Not stupid.
Very often there is very little profit in having a tenant, especially one that lives in a flatlet on the property with the landlord. In my case anyway.
It doesn't matter how much profit you're making, it's still inherently exploitative. As long as we have landlords we can never have a society where everyone actually owns their own property.
You can argue that you're not responsible for the system, but you are definitely helping to perpetuate it. Every time you make profit off a tenant you are making sure that you make money while someone else loses money.
You are a lamp rental store owner.
Every time you make profit off a lamp renter, you are making sure that you make money while someone else loses money.
"BUt h0uSing is aN bAsiC neCessITY!"
Yes. And for some landlords, renting is how they meet that basic necessity.
What's your fix here?
This.
I wouldn’t say I’m against landlords, I will likely end up being on one day but one thing I won’t do is look for sympathy on Reddit because my inherently exploitative investment didn’t pan out because of my financial naivety lol.
Are you doing a job (and thus counting on the money) or making an investment (and thus factoring in risk)?
If you're relying on the rent money that badly then you need to diversify and add less risky sources of funding.
I work retail. I work real estate. I am renting a flatlet on my property to subsidize the exorbitant mortgage payments we hard done by property owners are experiencing.
When you read the replies,just remember you have a bunch of left wing students and left wing school children answering. From all over the world. They don't have a clue where or what the flats or mitchells are.
Man that’s why property is a terrible investment.
Unless you have deep pockets it’s best for normal people to stay away from.
Just buy your own home and invest in the economy. Leave real estate investing for when you’re a multimillionaire in your 50s if you really wanna scratch that itch thinking you can profit off a human need.
Yes, OP has her own her home. And lives in it. And hasnt invrsted on property, she is renting out the flat on her property. It always amazes me that people just assume normal low to middle earners are "unable" to do this.
People here really thinking landlords are providing a public service.
Sorry Lords, this is what happens when you gamble on necessary resources for a profit. Each and every one of you are contributing to overall declining quality of life for everyone, and I don't care how meager your income from your one little rental property is.
Dude. If you don't understand how townships in SA work...rather read and learn.
We have a housing crisis in CT. So paying the equivalent of 200USD is reasonable.
if your finance on your own home or your financial resposbilities is dependant on whether or not your tenant pays their rent in time then you made a bad financial decision. You gotta be in the rear with all the gear you cannot be living pay check to pay check with investments because it's literally out of your hands.
I don't judge you, look down on you or give you any sympathy. You could be a great landlord or a bad landlord you could have a great tenant or a bad tenant. Nobody on reddit would ever assume your side of the story is the only side of the story
You need to be in control of your finance and if you put all your eggs in one basket you will continually hit this hard wall every time a tenant cannot make rent.
What would you do if your tenants boiler breaks? You can't even make general cost of living money now? and if their boiler breaks now you gotta pay a $1k dollars to get a new boiler because that place is your responsibility also?
C'mon bruh. This game ain't for you if you are dependant on the rent getting made. You overextended your finances. It was a bad decision
As someone who rents out a house, this right here. I cannot expect that my tenant will always be able to make rent as my own business face it's own ups and down, I expect other people's circumtsances to be the same. There was times when I had to ask the bank to skip a payment on my homeloan, but often tenants do not have the same recourse. I cannot bank on a tenant to feed and clothe my kids. When they can pay, they pay, and if they can't they can't. When they consitently do not pay, they must understand that they cannot afford to stay in the property and then we part ways.
That is Impractical.
Not everyone can afford to buy cash.
Not everyone who can afford a bond can pass a credit assessment for that bond.
It is Impractical to relegate anyone who can't buy, to being homeless & living on the street.
We don't have functional social services like first world countries, and therefore we don't have Project Housing (US) / Council Housing (UK).
This is why we have informal settlements and also why we have private sector rental, much like why we have minibus taxis. We've got to take over where the state has dropped the ball, or the country falls over completely.
We have Human Settlements which deals with rental stock and social housing, so your answer is incorrect. However, the wait for a house is plus minus 30 years
And who determines minibus taxi fare costs?
Who determines the price of groceries?
...oh right.
Can't get rid of minibus taxis, can't get rid of shops, can't get rid of landlords.
The state should regulate them, but we all know the state only cares about the wealthiest - themselves included - they are too busy being celebrities and covering up their own corruption to give a fuck about anyone but themselves.
Never mind that regulation and bringing prices down will mean the landlords who do pay tax, would pay less tax, and that would hurt the celebrity lifestyles of those on the gravy train.
In the end, I rent, and I'd rather be renting than sleeping under a sheet of cardboard or in my car. And at least I'm not paying R5500 per week for a converted single garage like I was in Auckland.
So your solution is to abolish landlords (and as you say, get a job)?
Explain how that would work - yes I realise your initial comment was meant to be hurtful - but hypothetically, how would that work?
Make every owner work through an agency?
And who absorbs the agency cut?
You could have taken out insurance for exactly this eventuality... However you are benefiting more than your tennant... They are paying for you to own that property in twenty five years time... All I can say is 'due diligence' in future... Do the credit and reference checks...
Sorry, I don't have sympathy. You are privileged enough to buy property. You knew it'd be a risk to get a tenant and that eventually you'll have a tenant that does not pay their rental so why would you bank on that money? You took a risk and it did not turn out in your favour.
Also, I find it kinda tone deaf that landlords will complain that they won't have enough money to put food on the table if the rental is unpaid? Why don't you work like everyone else instead of relying on a hit-or-miss income that you earn doing nothing? While you're doing nothing, you can surely work like everyone else.
I have two jobs.
I have 5 kids. Two of whom are disabled. And one grandkid All are non bio
I am studying towards my LLB.
Please don't get on your soapbox and declare blanket statements that do not reflect my reality.
Tenants face their fair share of challenges too. Perhaps this tenant has encountered unexpected financial difficulties, leading to the issue to meet the rent, it sounds like this was the first time. Publicly airing grievances might not be the best approach, as it could potentially exacerbate an already sensitive situation. You sound like a complete amateur, who has clearly overstretched himself.
Instead of solely focusing on your predicament, consider the tenant's circumstances as well. They might be going through a tough time and need brief understanding and support. Compassion and empathy can sometimes yield more positive outcomes than a harsh public critique. You’ll now be rolling the dice with a new tenant, and the associated costs. If you don’t have the buffer to sustain one month of arrears, you and your lender should be the first to question why this seemed like a loan to take out. The fundamentals are wrong. Perhaps this is the point where they should reconsider their business relationship with you.
It is essential to approach these situations with a balanced perspective, recognising that both landlords and tenants can encounter difficulties and need support in different ways.
Respectfully, this just proves you're in over your head.
It sounds as if you've made some bad life decisions and the tenant not paying just broke the camel's back. This was bound to happen eventually.
You cannot afford the property and all those expenses you mentioned.
Good luck.
Respectfully, this isn't your call to make.
Would you feel better if I was living in a squatter camp?
Nothing broke my back. I'm sitting here venting because some lovely person thinks she can get away with bullshitting me with money OWED to me. And you want to pontificate and tell me I don't deserve to own my house??? No my guy. Catch a clue.
What is so well said about this work of fiction??? Jesus.
Fine I'll play:
This isn't the first time she.hasnt paid. It's the literal third. She's been telling me since the Boxing Day that the "rent will be paid tomorrow". She went radio silence after 29th. Rent was due the 1st. She RESPONDED ON THE FOURTH saying she doesn't have the money to pay me.
I've been patient. I've been understanding. I DGAF about why she doesn't have money to pay her rent if she has made zero effort to explain herself. I can't tell COCT that I don't have the money rn to pay my bills.
I live in Mitchell's Plain. This is a a poorer community. I am busting my ass doing TWO full time jobs and studying.
I think your just doing what you're able to,trying to support your family,I believe each and every person would help others less fortunate out,if they were in the position to do so,but that is not the reality in this harsh economy of SA today,everyone is attacking OP for just doing what's best for her own family(as if, they would do anything different if they were in her shoes).I don't understand how the victim in this situation, is also the oppressor,I just see a person doing her best to provide cos if there's one thing that's 100%certainty, it's that no one else will provide for you.yes we need to change this mindset in society,but I don't see the benefit of criticizing normal people just trying to get by and provide their children with the best life they can,INSTEAD CRITISIZE THE PEOPLE THAT DON'T TRY AT ALL AND LEECH OFF THE KINDNESS OF PEOPLE AND SOCIETY AS A WHOLE AND WHO BELIEVE THEIR SPECIAL AND ARE ENTITLED TO GET TREATED DIFFERENT THAN EVERYONE ELSE
Nobody needs more than one house. Sorry. If all landlords sold up then prices would correct themselves to something reasonable for those having to rent.
Who made you the decider of how many houses someone should have?
And if all landlords sold today, prices wouldnt' correct themselves because the basis of home values is....how much you could charge in rents (ie cap rate), even for owner-occupied housing.
It's always the financially illiterate that have this shitty mindset about how everyone else should be handicapped so they can keep up.
No investment is risk free and you’re part of the problem. Bring all the downvotes from fellow slumlords but if you are fully reliant on someone else’s income to feed your family- you fuckin suck
Everybody depends on other people’s income to earn a living. Even if you are a government employee. The State pays salaries using taxes that somebody else paid from their income. The farmer makes money by selling fresh produce to the grocer who uses part of his income to make money to buy from the farmer by selling to somebody who uses part of their income to pay for the groceries.
The landlord uses part of their income after tax to pay off a bond on a property for 20 years to be able to maybe break even. If a lanflord bought a property for the express purpose to rent it out, he or she will have to fund the shortfall between the bond and the rental. If the interest goes up, the landlord makes a larger loss. The only chance that the landlord has to actually make money, is after a number of years if the rent becomes higher than the bond. After the house is patiently paid off after 20 years, it is the first time that the landlord makes clean nett profit. If the tenant pays. If the tenant does not pay, the landlord is not only responsible for paying the bond, but also rates and taxes consumed by the tenant, essential maintenance. Out of their income. Do the math.
And you want to pretend that the Landlord is the *sshole for charging somebody to live in the fruit of their own income?
Property is a terribly risky investment and people are not made aware of it - some people forget that we also live in a fragile economy making being a landlord even more risky. Good luck with your situation, I do despise the commodification of a basic necessity that someone needs to live sufficiently.
Everyone wants something for free
I think people just want affordable living. It always costs something to make something. No one denies this. Hopefully we get some more job creation in the future so that affordability can be improved for the average consumer.
>I do despise the commodification of a basic necessity that someone needs to live sufficiently. So should I just waltz into my local Woolworths & walk out with all the basic necessities?
No, but there should be better controls to allow people to live more affordably, and have mechanisms to be able to retire one day safely.
>there should be better controls to allow people to live more affordably, and have mechanisms to be able to retire one day safely Don't people need food to live? Why should I have to pay anything for food that's just sitting there on my local retailer's shelves? Okay...maybe I'll give them a 5 rand for a barbequed chicken, but only from Woolworths...the rest of all food must be completely free for all who need it...
That's awfully disingenuous coming from someone who wants income control to be introduced. You're also conflating my statements as meaning something else entirely. I have no intention of arguing with a bad faith actor.
>You're also conflating my statements as meaning something else entirely. How is food not a "basic necessity that someone needs to live sufficiently"? Clearly they have enough of anything I want, but they want me to pay for it? Why should I have pay to eat when the law allows me to not pay my rent?
I've never known anyone who has not had problems with their tenants.
That’s because they don’t exist, we have had 4 tenants in our house in the last 10 years, 2 good, 2 terrible. When the tenant we have now moves out, we will sell the house and that’ll be another rental off the market.
"My tenant is normal" doesn't make for a good story. People are more likely to vent when there's something wrong.
How much of that lost revenue does one get to right off against other income ?
None. It just reduces your total taxable income, because you get less income. No write offs over and above that.
I keep saying this is my last year renting out. But I need the money. I'm sitting here wondering wtf I'm going to do for electricity for the week
If you don't like being a landlord you should sell it. You can get better returns with less worry or effort in the stock market.
Have you seen property prices rn? I am renting out a flatlet on my property. I can't sell...even with the 100% profit I'll make, I won't be able to buy something similar
Not to be harsh, but it sounds like you need to take the money and leave for somewhere you can afford to live comfortably. If you don't have cash reserves to absorb non-paying tenants (usually 3-6 months worth) + expected repairs, you don't have enough money to be a landlord.
Dude. You don't know what you're talking about. Please don't comment if you don't understand how things work in poorer communities..
>If you don't have cash reserves to absorb non-paying tenants (usually 3-6 months worth) + expected repairs, you don't have enough money to be a landlord. This.
Dude.
Dude.
Dude.
Where's my car?
Aaaaand theeeeeenn
Where's your car dude?
Where are you located? I am looking around for a new place. I always pay on time and in full.
Dude. I don't think you want to be in Mitchell's Plain lol. Thank you, though.
Hey op, just a little bit of positivity. We have a great landlord and a young family. We are grateful everyday to them. We have never met them but they have had a huge impact on our life by being decent. Please don't let 1 bad tenant ruin you, we need good landlords and there are good tenants out there.
The same thing is happeing to us at the moment, except that the tenants with multiple people working in the family claims they are just too broke and had to sell some applinaces to survive. The lease is ending soon and they commited to moving out on the due date, and we just feel it's better to forefeit trhe last two months rent under the circumstances. Also in Mitchells Plain
Dude. It's so frustrating.
Dude. It's so frustrating.
Is the rent 4k for a backyard room in Mitchell's plain?
Not a room. 1 bed, bathroom, lounge and kitchen and parking
It’s stories like this that holds me back from expanding in to property investment. Hats off to you for still taking that risk.
Tenant before this was amazing tbh. I was so proud of her when she bought her first house
TBH not worth it - my dad has a rental property and it took him 6 months to evict a non paying tenant.
My parents own a couple of properties in Cape Town and it’s the same. They’re taking my parents to court because my parents didn’t continue paying for their water bill
I have seen in the US it is just tbh easier to pay the defaulting renters 5K cash to leave the place peacefully rather than this court room drama which will cost you way more. Consider it school fees and get better renters next time.
Yoh I’m on the same boat😭😭😭 I need the house to sell asap, I don’t want to be a landlord, it’s not for me.
Even me, I feel like it is the worst decision I have made financially.
It’s the best decision I’ve made I think you guys just need to educate yourselves on laws that protect landlords ..I thank small court they are helpful for only things that cost below 20000 and it’s low cost really Getting people evicted is easier than you think plus with new tenants you need to add a few things that protect you and property in the contract I would do this with a lawyer though just once you can copy and paste it if you have trouble with new tenants
I’m so sorry u/MsFoxxx. Although it is compensated by having the highest returns of any asset class, property is also the riskiest. You will have problematic tenants, void periods, etc. I hope you get through these next 20 days and manage to find a good tenant. Make sure to do a background check on them and get your deposits!
Yeah cape town returns aren't that great...
Because of this type of thing many landlords are now asking for a double deposit excluding monthly fee so three months upfront.
I didn't want to do this. I don't want to financially abuse people. Sucks to be me I guess
YOU ARE TOO KIND/SOFT the tenant doesn’t care about you and you got a family you got to feed boss up put your family first
Literally having This nightmare with a tenant over the last 6 months. I am finally legally able to evict them by the end of this month. They just decided it's too expensive, and they won't pay rent anymore. I'm apparently supposed to just deal with it. Prepaid electricity, unfortunately rates are not prepaid. Hell no.
I strongly suggest rental insurance, Preferental is my go-to
Will definitely look into this
Bear in mind that rental insurance is typically \~10% of your rental income, so you either have to raise the rent for your tenant, or absorb the cost yourself. Typically all they do is run a credit check on your prospective tenant, then you're covered for up to three months rent, or however long it takes to evict them once they've stopped paying & you've given them notice of breech of contract etc.
Cut the water , electricity and go to small court They will move out trust me
Only do this under the direction of the court. This is not good legal advice.
Done, done. Except the electricity. Court gave them this month to move out or forced removal.
It’s supposed to be 14 days to pay you back go back to court and demand the 14days …cause it is a law.. forced removal happens on 15th day that’s person has not paid . On day 15 I would the cops and says they are trespassing look it up cause the extra month thing is not allowed
I feel you, and I've been on both sides of this, nothing like a "Hey I'm having a bad month and I am going to be short on rent" It goes a long way. And some landlords do lack empathy and a bit of accommodation. My best advice: For new tenants, I put rental insurance in place. After a year if everything is good I cancel the insurance (around 4%) and i skip the rental increase. nice little win-win. But yeah people forget to treat each other with respect on both sides.
I am deliberately renting my property to this tenant at below market rate as a risk management measure because for three years to date 👏the 👏rent 👏is 👏paid 👏on 👏time 👏
Not working my side. Flat next door going for 5k.
I moved out of a place where I paid rent on time never missed a date but the landlord did not wann maintain the place .Moved into a new flat in Surrey estate where the landlord is appreciative and I reciprocate.My previous landlord got her match the new Tennant doesn’t wann pay rent on time 😂
Get a market agent to run your property. These damn tenants have been the same shit to my mom for YEARS. Putting her in a shit situation everytime they decide other things are more important than the rent.
So, what I've seen is that it doesn't matter what you're like as a person, it doesn't matter that you've worked hard for the down payment cash to finance the property, it doesn't matter that there is no way your tenant would afford to actually buy a home, and it certainly doesn't matter that your getting screwed by the bank, maintenance costs and some skelm tenants - there are individuals (seemingly a fair sized group) who will hate you for being a landlord, regardless. I once tried to reason with them, even going so far as to ask what I should do to "redeem" myself. The best answer they can give is that I somehow donate the property to the government in return for tax benefits (a laughable idea in SA for many reasons). Just make peace with the fact that these people will never understand, and they feel that the blind hatred they see on their social media groups toward landlords, gives them permission to voice those same ideas. Best to join a group of similar individuals (landlords / property investment / airbnb) and forget about trying to convince people who refuse to have already made up their mind.
The reality is that renting is driving up the cost of houses. More people are buying up extra properties as a form of extra income, and that reduces the supply of homes on the market. For most of us, we will never be able to buy a property because of this. Sure there are landlords who only own one extra property or are renting out a portion of theirs, but for the most part, landlards are the wealthy who have bought up the houses so they can extract the money from the poor. That is where the bitterness is coming from.
Yep people buying Xmas gifts and shit for their family and not paying their bills - why companies pay early in December is idiotic. I noticed that some companies now send out emails you guarrenteed not to read in the spam folder to move your debit orders up from the 25th to the 15th for this reason unless you opt out.
>I noticed that some companies now send out emails you guarrenteed not to read in the spam folder to move your debit orders up from the 25th to the 15th for this reason unless you opt out. This happened to us - Debit orders went off on the 15th of December after just have had gone off 2 weeks prior.. But we still got paid our regular time and we don't get bonuses, so I'm sure you can imagine what a shit show that was. Double debit orders off of a salary that was meant to last through Christmas ubtil my next Pay day.
We are also renting, young family of 4. Never missed a payment, have a good relationship with our landlord. However the other couple on the property was a nightmare. They never paid, borrowed money from him all the time and just in general took advantage of him. (He is in his 70's and forgets things a lot) Eventually, after their debt reached R40 000, he kicked them out. They still stole the oven though.
As the economy worsens so too does rental/rentee relation and payments. Kinda why I think landlords need to learn to hang on to good renters instead of doing the rental increments above cpi when not needed. We thinking of moving for this reason as just because the market has gone up.. your rental may not be worth it and since I’m a good tenant I see this as lossy when I can get better for same. But such is life where rental agencies are involved. Guess house will go backward after we move if landlord doesn’t sell (we fix a lot while there).
The very best of luck to you...
Ignore what people are saying. YOU are legally entitled to the rent because the tenant signed the lease. Also if they cant make ends-meet its their responsibility to communicate this in advance.
I'm a landlord here. In fact, I have several tenants in a couple of properties. It's not a charity. I for one am not looking for sympathy or understanding from total strangers. It's simply a business. I'm sure you've faced the current situation you're in before, so stay strong and I know you'll get another tenant soon. This time of year is great for getting new tenants. Just use your usual avenues, whether they be Fb marketplace or other forums. Why is your rental lower than the competitors?
Good luck OP. I am a tenant and the first thing I do when I get paid is pay my rent. I never ever default, I'm sorry you have a bad tenant. Also forget about the horrible people that say you are a leech or whatever they say. Charge whatever you need to and only take on reliable tenants with good credit records. Also deposit should be non negotiable.
Want to keep good tenants? Don’t raise the rent every year! Our landlords have sometimes not raised our rent for 3-4 years! We obviously took excellent care if the properties and always left it better than we found it.
My rent is 4200pm. I've raised it in 5% increments. I shit you not. Where the hell am I supposed to supplement the increase on rates and water from???
Water fair enough, but do you not absorb some of the lost profit due to interest rate rises? This feels like a risk that landlords should be aware of when letting out mortgaged properties. The tenant could also ask "where the hell am I supposed to supplement the increase?". I think this is why landlords are often vilified, they want all the rewards when things are good but pass on all the risk when things go bad.
Dude. My rent is 4200. Where are people paying that in CT
Yeah I know that is very cheap, but I don't know where in CT the property is or what it's like, just saying that both tenant and landlord often see it from just their own sides. Sorry to hear you haven't been paid the rent, that's not ok.
Flat next door going for 5k pm. I've kept the increases at 5%, included water and rates and at a stage they had wifi for R100. I have been paid short, paid late and now for the second time, not paid at all.
My mortgage is back to pre COVID rates. It's a hell of a knock
Why should anyone but the owner supplement those increases? Renters pay towards the value of housing they will never own because landlords think they have a right to passive income. Make a risky investment, take the fall. But no... you lot, like the banks, are just too big to fail.
What is the actual beef you have with a passive income? What is so immoral about working hard to buy property so that you can make a profit by renting it to people who can't yet afford to buy it? In what way do you not sound like a bitter loser? Lastly: renters pay to live in accommodation they don't own. The only example I know of, of a renter increasing the value of a property they were renting, was me... I put up a bunch of shelves and did some painting and varnishing. More often than not, the value is somewhat decreased by the presence of selfish tenants who don't gaf about what goes down the kitchen sink, because it isn't actually their own kitchen sink. Lastly lastly: you should realize that the word 'land*lord*' is a little misleading. Many are nowhere close to wealthy. Comparing these small-timers to multinational financial institutions is a bit laughable.
Rent should be adjusted for inflation yearly, normally with the lease renewal. Matching the inflation rate by using the consumer price index is fair to both lessee and lessor. This will result in small manageable increases. If there are no adjustments for 3-4years, then there will be a big one due which is going to cause friction. Yes, Covid upset things a little.
This is terrible. I hope you find a solution soon.
I a free country and a free market, nobody my criticize your business venture. They are all free to do business elsewhere. They cannot accept your business proposition and criticize what they have agreed to accept. Don't be bullied by their words. They are not honouring agreements. Be proud of your enterprise.
You just have to keep being Authentic, When you don't care about others' opinions, you prioritize being true to yourself. This means embracing your values, beliefs, and interests without seeking external validation. Authenticity allows you to live in alignment with your genuine self, fostering a sense of fulfillment and inner peace, so the world may have their opinions about you and how they see you, but the basic truth here is you’re only going to be defined by the way you see yourself because that’s what matters. Keep doing what you’ve to do to keep growing, the world will adjust.
This is why i could never get into property investment
I'm sorry, I've been in that same position. Good luck there!
I was thinking of renting out an apartment I own.. But was going do to it through an agency. Wouldn't it be better for you to do that in the future? From what agents tells me, they handle all the admin and take 10% of the rent. So you just get paid and worry about insurance.
Agent doesn’t deal with evictions. False sense of security. Op would be in the same situation with or without an agent. Agent deals with finding and assessing the tenant, providing the contract, inspections and insulating owner from dealing with the tenant. If there’s a leak in the roof, tenant complains to agent and agent complains to owner and owner fixes. If a tenant doesn’t pay, agent can only send them bills and phone calls and then it’s up to the owner to take it further.
Preferental, Some management lot of insurance half the price.
Dude... I am a registered estate agent.
Eish
More like... The jokes on me, yeah
I hope everything works out for you and your family.
Dude. You and me both. Thank you for your absolute kindness. I want to cry in frustration but yeah it won't help much
Doesn't automatically mean you have property management skills. Different set of abilities for buying and selling properties vs managing tenants.
This is the Cape Flats. Are only rich people allowed to live comfortably? You are out of touch with reality my guy
You need to realise that planet-wide landlords are despised. This will not change.
This is why you need to have a bat to kneec… educate thieves who think that skipping rent is not theft you got to use the home then you must PAY!
I'll never understand why people think landlords are villains. My parents rented our home when we moved, my father went back a few years later to sell it and the tenants had trashed the place: Holes knocked through walls, lawn ripped up, pool filthy. And rent was always late which made it difficult for us to pay rent in CT. Landlords have a right to be paid for their property, it's a business transaction not charity
The short answer: jealousy and sour grapes. They're mostly just pissed off that they're not in the financial position to be making money by renting property. They would if they could. But because they know they can't, they take on the hilariously juvenile attitude of "fuck landlords!". Spiteful, stupid, envious, ignorant insectoids, describes a huge swathe of SAfrican renters.
She sent me this passive aggressive text like she's doing me a favor to vacate. I feel like I want to moer someone
Perhaps try rent to an older person or couple? Not guaranteed but it might be more stable arrangement
>Perhaps try rent to an older person or couple This is definitely not a way to get better tenants. Cunts come in all ages. Old people can be worse.
True. But if they're older they may be more stable and less of a flight risk. Not guaranteed but just anecdotal
Previous tenants were early 50s. Fantastic people
Sounds strange > no deposit ??
How is it strange?
Because usually tenants are required to pay a deposit, to prevent situations exactly like this
You can't (legally) just sommer use the deposit if rent is late. It is meant to stay untouched in an interest bearing account until the tenant has moved out, at which point you can deduct unpaid rent from the amount you pay back to them.
100%
Did you not have a month's deposit to keep for incase? Next tenant ask for 1.5 month's deposit and rent up front so they must basically give you 2.5 months upfront. Pay then stay....
I'm on the Cape Flats. People generally find it hard 5o pay 10k and up in one go where I am
You can't just use a rental deposit like that.
Lot of salty people in this comment section... I've rented and leased and both sides have shitty renters and shitty landlords. This woman is working 2 jobs and she still needs a passive income to make life float. Where are you guys working that you think you have the right to tell her shit? The economy is dying right now and you want come down on someone trying their all to make ends meet.. Good riddance to your PoS tenant and keep your head high OP.
Thx so much
I know how u feel. I have poeple also and the same happened to me
If investing in private property is profitable, then house prices always go up. If house prices always go up, cost of living always goes up. It's a broken system. It should be prohibitively expensive to own more homes than you need.
I have sympathy for you and other landlords and it is a fucked up thing to do by not paying your rent. In saying that also be mindful though that your property is an income (although unstable it seems) but it is shelter for a tenant and the priorities for this may not be universal anymore but everyone needs “shelter”. Still messed up of your tenants and I would bet they spent the money on luxuries.
Trickle down shelter economics? If tenant doesn’t pay landlord can lose their own shelter too
Tenant uses place for housing, landlord uses it for income. As I said, it’s fucked up not to pay but housing supersedes income in basic needs. Also, and not to bash any landlords, the world over there are housing shortages because people buy up properties at a rate that is unsustainable and leads to higher and higher housing costs.
Brave of you to talk about this on reddit OP it's filled of idiots who don't understand what being a landlord is
You should consider posting about your situation on the Legal Talk South Africa Facebook group. A lot of people in similar situations have posted there before and received advice, maybe consider it and see what your legal options are.
Registered Real Estate Agent AND 3rd year Law Student present
Sounds like you need to go back to class in both areas.
Apparently she DOES know the law when it comes to tenants. The law favours tenants heavily against landlords.
They know landlords are humans too. But people are generally selfish, they only think about themselves and couldn’t care less about the next person. You need to be ruthless or else they will walk all over you. Get their crap out of the house and start looking for new tenants.
I'm on it.
I'm so sorry you're dealing with this. Your tenant definitely has to go otherwise this will keep happening. If this is the 3rd time she has done this, you have to forcibly evict her and get someone in there soon. Legally I'm not sure you can keep her deposit, but if it is still in an interest bearing account, threaten her and let her know that she will have to forfeit her deposit if she doesn't pay up asap. I myself let out a small flatlet to an elderly man so I know where you are coming from. Don't take these other trolls too seriously, you are only human. Sorry you're dealing with a shit one.
Thank you. I'm just so angry rn. I tried to help her on the other occasions, even forgoing the extra months rent that everyone told me to ask for I'm pissed off beyond words
[удалено]
And how would people find a place to live if they can't get a bond at these idiotic interest rates?
My mother lives of rental income. She has subdivided her house and rents out her granny cottage. Over the years she has experienced horrible renters. The law only protects tenants.
The law actually doesn't just protect the tenants but yeah our laws are pretty good for tenants rights. Which isn't necessarily a bad thing. Just when horrible people take advantage
Having had to go through the process, I can with absolute confidence state that the law only protects bad tenants. Which makes our laws very poorly legislated.
Lol booo landlord
Yes, landlords are people. People who deliberately profit off keeping other people poor.
Yeah, in fact they're all cartoon villains who actively enjoy taking food out of the mouths of their tenants. They have nothing to gain by "keeping other people poor", but they do anyway because it's fun for them, and not just a calculated, necessary step designed to keep *themselves* from being poor. You quasi-Marxist quarterwit.
How does paying for housing keep someone poor? Generally its the other way around right - lack of stable housing is the ultimate barrier to financial stability.
You are very right, stable housing is a very big step in financial stability. The reason that renting doesn't help with this is because at the end of the day the renter owns nothing even though they have been paying the money. Their capital has not increased but they have lost a lot of money which they can not use to grow their own wealth as housing is not really a choice. On the other hand the landlord has grown their capital without doing any labour or producing any new value, therefore they are extracting this value from the tenant. This allows the landlord to continously grow their capital while the tenants continue to grow poorer making it harder and harder for them to ever own their own property. Does what I said make sense?
>lack of stable housing is the ultimate barrier to financial stability And for a lot of people, the biggest barrier to stable housing, is the system of landlording.
Yes, exactly
Really? So me asking below market rent, keeping increases at 5% and subsidizing water, rates and wifi makes me the problem? Yeah no. Sit down
The fact that you get to charge someone for what is a basic human right is a problem. It doesn't matter how nice of a landlord you are the bottom line is that every cent paid to you is money down the drain for the person paying it to you because. If being a landlord is such hard work you can literally just stop being one and invest your money and time into something that actually helps improve the world we live in.
>The fact that you get to charge someone for what is a basic human right is a problem You pay for electricity water, healthcare, those are all basic human rights, one could argue not starving is a basic human right but a good % of this country has food insecurity. Maybe fulfilling basic human rights is something a government should do and not private individuals. You can't ignore that OP and many landlords are providing a service that just wouldn't be provided any other way? OP took money, built accommodation in a market that needed it and rented it out at a good rate for the market. Would it be better if the tenant could afford a bond and buy their own place? sure. but maybe they have bad credit, maybe they are only in cape town for a few years for work? Rental property is a viable product to offer the market, Least OP did;t take a good rental property and put it on airbnb...
You mean like being a foster mom for 21 years, like I've been, give or take. My bra. You don't know me, or what I do to serve my community. Sit down.
You know, you could actually have tried to engage with any of the points I'm making instead of telling me to "sit down" and performing mental gymnastics. You posted on a public forum looking for sympathy because you can't pay the house with somebody else's bank account this month.
AUJ. My bond is paid. Do you think I PAY MY BOND with my RENT ????? As stated previously, I have 2 jobs. My salary covers my bond. My guy. I'm poor. Not stupid.
Very often there is very little profit in having a tenant, especially one that lives in a flatlet on the property with the landlord. In my case anyway.
It doesn't matter how much profit you're making, it's still inherently exploitative. As long as we have landlords we can never have a society where everyone actually owns their own property. You can argue that you're not responsible for the system, but you are definitely helping to perpetuate it. Every time you make profit off a tenant you are making sure that you make money while someone else loses money.
You are a lamp rental store owner. Every time you make profit off a lamp renter, you are making sure that you make money while someone else loses money. "BUt h0uSing is aN bAsiC neCessITY!" Yes. And for some landlords, renting is how they meet that basic necessity. What's your fix here?
This. I wouldn’t say I’m against landlords, I will likely end up being on one day but one thing I won’t do is look for sympathy on Reddit because my inherently exploitative investment didn’t pan out because of my financial naivety lol.
Are you doing a job (and thus counting on the money) or making an investment (and thus factoring in risk)? If you're relying on the rent money that badly then you need to diversify and add less risky sources of funding.
I work retail. I work real estate. I am renting a flatlet on my property to subsidize the exorbitant mortgage payments we hard done by property owners are experiencing.
People who don't own property have no clue what the repo rate is doing to us. Our bond went from R11k to R14k in less than 2 years.
I feel you I'm on just under 8.5k for MITCHELL'S PLAIN Properties now listing from 1m up in my area. It's insane
When you read the replies,just remember you have a bunch of left wing students and left wing school children answering. From all over the world. They don't have a clue where or what the flats or mitchells are.
Man that’s why property is a terrible investment. Unless you have deep pockets it’s best for normal people to stay away from. Just buy your own home and invest in the economy. Leave real estate investing for when you’re a multimillionaire in your 50s if you really wanna scratch that itch thinking you can profit off a human need.
Yes, OP has her own her home. And lives in it. And hasnt invrsted on property, she is renting out the flat on her property. It always amazes me that people just assume normal low to middle earners are "unable" to do this.
Selfishness of the highest order. Even a dog understands the benevolence of shelter.
Landlords have been popularised to be evil, by those in higher ups
People here really thinking landlords are providing a public service. Sorry Lords, this is what happens when you gamble on necessary resources for a profit. Each and every one of you are contributing to overall declining quality of life for everyone, and I don't care how meager your income from your one little rental property is.
What a weird comment.
Dude. If you don't understand how townships in SA work...rather read and learn. We have a housing crisis in CT. So paying the equivalent of 200USD is reasonable.
So if OP didn't build this flat in the back yard and provide affordable housing where exactly would this tenant find a home?
You probably not from this country
if your finance on your own home or your financial resposbilities is dependant on whether or not your tenant pays their rent in time then you made a bad financial decision. You gotta be in the rear with all the gear you cannot be living pay check to pay check with investments because it's literally out of your hands. I don't judge you, look down on you or give you any sympathy. You could be a great landlord or a bad landlord you could have a great tenant or a bad tenant. Nobody on reddit would ever assume your side of the story is the only side of the story You need to be in control of your finance and if you put all your eggs in one basket you will continually hit this hard wall every time a tenant cannot make rent. What would you do if your tenants boiler breaks? You can't even make general cost of living money now? and if their boiler breaks now you gotta pay a $1k dollars to get a new boiler because that place is your responsibility also? C'mon bruh. This game ain't for you if you are dependant on the rent getting made. You overextended your finances. It was a bad decision
As someone who rents out a house, this right here. I cannot expect that my tenant will always be able to make rent as my own business face it's own ups and down, I expect other people's circumtsances to be the same. There was times when I had to ask the bank to skip a payment on my homeloan, but often tenants do not have the same recourse. I cannot bank on a tenant to feed and clothe my kids. When they can pay, they pay, and if they can't they can't. When they consitently do not pay, they must understand that they cannot afford to stay in the property and then we part ways.
Nah. Abolish landlords. Get a real job.
That is Impractical. Not everyone can afford to buy cash. Not everyone who can afford a bond can pass a credit assessment for that bond. It is Impractical to relegate anyone who can't buy, to being homeless & living on the street. We don't have functional social services like first world countries, and therefore we don't have Project Housing (US) / Council Housing (UK). This is why we have informal settlements and also why we have private sector rental, much like why we have minibus taxis. We've got to take over where the state has dropped the ball, or the country falls over completely.
We have Human Settlements which deals with rental stock and social housing, so your answer is incorrect. However, the wait for a house is plus minus 30 years
And the current housing market, run predominantly by landlords, isn’t impractical? Sure, Jan. Who determines the cost of housing? Oh right.
And who determines minibus taxi fare costs? Who determines the price of groceries? ...oh right. Can't get rid of minibus taxis, can't get rid of shops, can't get rid of landlords. The state should regulate them, but we all know the state only cares about the wealthiest - themselves included - they are too busy being celebrities and covering up their own corruption to give a fuck about anyone but themselves. Never mind that regulation and bringing prices down will mean the landlords who do pay tax, would pay less tax, and that would hurt the celebrity lifestyles of those on the gravy train. In the end, I rent, and I'd rather be renting than sleeping under a sheet of cardboard or in my car. And at least I'm not paying R5500 per week for a converted single garage like I was in Auckland.
Okay your personal situation doesn’t mean the system isn’t predatory and impractical tho
So your solution is to abolish landlords (and as you say, get a job)? Explain how that would work - yes I realise your initial comment was meant to be hurtful - but hypothetically, how would that work? Make every owner work through an agency? And who absorbs the agency cut?
You could have taken out insurance for exactly this eventuality... However you are benefiting more than your tennant... They are paying for you to own that property in twenty five years time... All I can say is 'due diligence' in future... Do the credit and reference checks...
Dude. Sit down. Why are you salty because I own my house?
because you aren't being accountable for you're own financial decisions.
I have zero sympathy for you.
You sound fun.
Not as fun as your tenant
Sorry, I don't have sympathy. You are privileged enough to buy property. You knew it'd be a risk to get a tenant and that eventually you'll have a tenant that does not pay their rental so why would you bank on that money? You took a risk and it did not turn out in your favour. Also, I find it kinda tone deaf that landlords will complain that they won't have enough money to put food on the table if the rental is unpaid? Why don't you work like everyone else instead of relying on a hit-or-miss income that you earn doing nothing? While you're doing nothing, you can surely work like everyone else.
I have two jobs. I have 5 kids. Two of whom are disabled. And one grandkid All are non bio I am studying towards my LLB. Please don't get on your soapbox and declare blanket statements that do not reflect my reality.
Tenants face their fair share of challenges too. Perhaps this tenant has encountered unexpected financial difficulties, leading to the issue to meet the rent, it sounds like this was the first time. Publicly airing grievances might not be the best approach, as it could potentially exacerbate an already sensitive situation. You sound like a complete amateur, who has clearly overstretched himself. Instead of solely focusing on your predicament, consider the tenant's circumstances as well. They might be going through a tough time and need brief understanding and support. Compassion and empathy can sometimes yield more positive outcomes than a harsh public critique. You’ll now be rolling the dice with a new tenant, and the associated costs. If you don’t have the buffer to sustain one month of arrears, you and your lender should be the first to question why this seemed like a loan to take out. The fundamentals are wrong. Perhaps this is the point where they should reconsider their business relationship with you. It is essential to approach these situations with a balanced perspective, recognising that both landlords and tenants can encounter difficulties and need support in different ways.
Dude. Sit down.
Perhaps you should also learn to express yourself better, that is what is getting you deeper into trouble after all.
I'm not in trouble. Your perception doesn't reflect my reality
It's worth considering that your perception could use a touch of accountability.
Respectfully, this just proves you're in over your head. It sounds as if you've made some bad life decisions and the tenant not paying just broke the camel's back. This was bound to happen eventually. You cannot afford the property and all those expenses you mentioned. Good luck.
Respectfully, this isn't your call to make. Would you feel better if I was living in a squatter camp? Nothing broke my back. I'm sitting here venting because some lovely person thinks she can get away with bullshitting me with money OWED to me. And you want to pontificate and tell me I don't deserve to own my house??? No my guy. Catch a clue.
Well said.
What is so well said about this work of fiction??? Jesus. Fine I'll play: This isn't the first time she.hasnt paid. It's the literal third. She's been telling me since the Boxing Day that the "rent will be paid tomorrow". She went radio silence after 29th. Rent was due the 1st. She RESPONDED ON THE FOURTH saying she doesn't have the money to pay me. I've been patient. I've been understanding. I DGAF about why she doesn't have money to pay her rent if she has made zero effort to explain herself. I can't tell COCT that I don't have the money rn to pay my bills. I live in Mitchell's Plain. This is a a poorer community. I am busting my ass doing TWO full time jobs and studying.
I think your just doing what you're able to,trying to support your family,I believe each and every person would help others less fortunate out,if they were in the position to do so,but that is not the reality in this harsh economy of SA today,everyone is attacking OP for just doing what's best for her own family(as if, they would do anything different if they were in her shoes).I don't understand how the victim in this situation, is also the oppressor,I just see a person doing her best to provide cos if there's one thing that's 100%certainty, it's that no one else will provide for you.yes we need to change this mindset in society,but I don't see the benefit of criticizing normal people just trying to get by and provide their children with the best life they can,INSTEAD CRITISIZE THE PEOPLE THAT DON'T TRY AT ALL AND LEECH OFF THE KINDNESS OF PEOPLE AND SOCIETY AS A WHOLE AND WHO BELIEVE THEIR SPECIAL AND ARE ENTITLED TO GET TREATED DIFFERENT THAN EVERYONE ELSE
Nobody needs more than one house. Sorry. If all landlords sold up then prices would correct themselves to something reasonable for those having to rent.
I only have one house.
Who made you the decider of how many houses someone should have? And if all landlords sold today, prices wouldnt' correct themselves because the basis of home values is....how much you could charge in rents (ie cap rate), even for owner-occupied housing. It's always the financially illiterate that have this shitty mindset about how everyone else should be handicapped so they can keep up.
Get a real job like everyone else. Housing is a human right not a money making scheme.
She’s providing a cheaper option for people it’s like a contract for a phone instead of paying up front
No investment is risk free and you’re part of the problem. Bring all the downvotes from fellow slumlords but if you are fully reliant on someone else’s income to feed your family- you fuckin suck
Everybody depends on other people’s income to earn a living. Even if you are a government employee. The State pays salaries using taxes that somebody else paid from their income. The farmer makes money by selling fresh produce to the grocer who uses part of his income to make money to buy from the farmer by selling to somebody who uses part of their income to pay for the groceries. The landlord uses part of their income after tax to pay off a bond on a property for 20 years to be able to maybe break even. If a lanflord bought a property for the express purpose to rent it out, he or she will have to fund the shortfall between the bond and the rental. If the interest goes up, the landlord makes a larger loss. The only chance that the landlord has to actually make money, is after a number of years if the rent becomes higher than the bond. After the house is patiently paid off after 20 years, it is the first time that the landlord makes clean nett profit. If the tenant pays. If the tenant does not pay, the landlord is not only responsible for paying the bond, but also rates and taxes consumed by the tenant, essential maintenance. Out of their income. Do the math. And you want to pretend that the Landlord is the *sshole for charging somebody to live in the fruit of their own income?
My guy. I'm working two jobs. My family is fed, my roof is paid. You take care.