The Landlord's Playbook
Homeowner's roles and responsibilities.
In this business, there are three main stakeholders. You, the tenants and Bitprop. You, as the homeowner, are in the middle and take care of your tenants on your property. Bitprop, on the other side, is there to provide you with guidance and technical support to run your property successfully, and to handle the tenant's leases and payments. At the end of 10 years, we want you to be ready to run your property smoothly on your own. For a smooth operation, there are rights and responsibilities relevant to all stakeholders.
Roles
- You can request maintenance from Bitprop and should report issues promptly with all necessary details
- You earn 15% of the rent paid by your tenants
- You must give tenants written notice before increasing rent, and Bitprop will provide you with the necessary information
- If a tenant breaks the lease, such as not paying rent, you have the right to evict them. Bitprop will lead this process - we will notify you in the case of an eviction
- You should conduct inspections with tenants before new ones move in and after they leave
Responsibilities
You, ultimately, get to choose who lives on your property, but it's important that all flats are occupied - and you need to be involved throughout this process. Your responsibilities include:
- Finding and keeping tenants
- Making sure tenants pay rent by the 1st of each month
- Helping them submit maintenance tickets
- Maintaining your legal water and electricity connections on your property
- Paying your water bill with the City of Cape Town
- Ensuring there is enough electricity in your main meter, as the electricity in the flats comes through your meter (and is reimbursed to you, monthly)
- Looking after your property - making sure your yard is clean and pleasant.
You should inspect your property regularly to ensure everything works properly. If there are any issues with flats in your backyard, it's your responsibility to inform Bitprop.
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Staying Up to Date with Payments
It's important to know about the bills you need to pay as a property owner. One of the most important is your municipal bill, which you must pay every month. This bill covers things like city rates, garbage collection, water, and sewage services. If you miss these payments, the city might reduce or cut off your water supply. This can cause problems for you and your tenants, leading to disagreements.
If you have a payment plan to catch up on old bills from before you signed with Bitprop, you need to keep paying that extra amount until your debt is paid off. This means paying for the water your tenants use with the rebate from Citiq, your part of the municipal bill, and any extra amount you owe.
For example, if your municipal bill for March is R1 300.00 and your tenants used R450.00 in water, you would pay R450.00 from the tenants and R1050.00 from yourself to cover the total bill. If you have a payment plan, you would pay the full R1300.00 plus the extra amount you agreed to with the municipality.
If you do not have an arrangement with your municipality but would like to apply for one, visit this link: Arrange a payment plan.
It's also important to keep up with other payments and debts to avoid getting over-indebted. If you’re under debt review, make sure to keep paying those debts to get the review removed. Your home loan is the most important payment to keep up with because if you fall behind, the bank could take your property.
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Property Management
Property management is about taking care of your property and making sure everything runs smoothly. This includes keeping the property clean, making sure maintenance issues are reported and fixed, and handling everyday tasks like sorting the bins.
Fill in the blanks - here are the options of the answers: 1st, water, electricity, electricity meter, 15%
Why is Property Management Important?
- Makes Your Property Attractive: A well-managed property looks better to potential tenants. This means it's easier to find renters, and you can make more money from rent.
- Reduces Problems: Taking care of your property helps you spot and fix problems early, saving you from dealing with big repairs later.
- Builds a Good Reputation: A well-managed property gets a good reputation. This makes it easier to attract tenants because people trust you as a landlord.
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What does a well-functioning property look like?
The main goal of property management is to keep the property in good condition, and follow all laws and regulations. Remind tenants to keep your property clean and free of food to avoid attracting insects and rodents. Ask them to store food properly, and regularly dispose of trash in sealed bags. While inspecting the property's exterior, check for water leaks, broken windows, rotting wood, or full gutters. By regularly checking the exterior, you can spot problems early before they become major issues.
Case Study
A landlord in Langa wanted her tenants to feel safe and proud of where they lived once her flats were built. After the flats were completed, there was no boundary wall around the property, which made it feel less secure. When she started getting her 15% rental income, she hired a contractor to build a boundary wall.
To manage costs, she arranged to pay for it in installments. The landlord worked closely with the contractor to make sure the wall was built properly. She focused on keeping the property clean and organized. The new wall made the property safer and more attractive. Tenants felt more secure and proud of their living space.
The landlord’s efforts showed her commitment to providing a good place to live. This case shows how taking steps to improve safety and appearance can make tenants happier. The landlord’s proactive approach benefited everyone involved.
Here is a list of items to check every 3 to 6 months: Property management checklist
Keeping your property clean with tenants can be challenging. Here's how to combat it:
A good way to manage your property and avoid issues with tenants is to establish clear rules before they sign the lease. These rules should help maintain a clean and peaceful environment without making tenants feel uncomfortable or restricted.
Here are some examples of rules you can use:
- No noise on weekdays and no noise after 10 pm over weekends
- No fighting
- The bin will be taken out on X day and each tenant will be responsible for taking it out on a schedule as well as the landlord - the schedule will be developed together and agreed upon
- No visitors after 9:30 pm
- Make plans for parking space- no fighting. Ask your visitors to not block the traffic when visiting you
- Keep the dignity of this home high
- No pets allowed in or outside your flat
- No drilling on the walls whatsoever
- Keep the yard clean - don't drop takeaways in the yard and expect the landlord to clean after you
- Each tenant must have one parking per flat. If it happens that you to have 2 cars, then one car will park outside or find other alternatives
Safety and Security
Keeping your property safe and secure is important for you and your tenants. With more people on your property, you may need to make some changes to ensure everything stays safe. Here are a few tips:
- To keep your property and tenants safe, ensure that each tenant knows they always have to lock the gate when they come in or go out.
- Set a time each day when the main gate should be locked for night-time security e.g. 8 PM: gate is locked. Also make sure to notify your tenants of the time that you lock your main gate.
- Tell tenants not to give their key to anyone else to control property access. It's also a good idea to always accompany visitors on the property and avoid leaving them alone.
- Provide tenants with a list of emergency contacts, including the local police and the fire department.
- Lastly, encourage tenants to keep their personal belongings secure and out of sight from outside.
Following these tips will help keep your property and everyone on it safe and peaceful.
Emergency procedures and local municipality contact details
As a new landlord, it's important to know the local emergency numbers for police, fire, and medical help to keep everyone safe. Ensure you make and share an evacuation plan with your tenants and set meeting points in case of an emergency.
Attending community meetings is also helpful to stay updated on local services and changes. Being involved in the community will help everyone work together and improve safety for your tenants and your family.
- Fire Emergencies: City of Cape Town Fire and Rescue Services at 107 (from a landline) or 112 (from a mobile phone)
- Medical Emergencies: Dial 10177 for an ambulance or 112 for a mobile phone
- Police Emergencies: Dial 10111 in case of crime emergencies
- General Contact Information
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- City of Cape Town Disaster Risk Management Centre (DRMC): +27 21 597 6000
- City of Cape Town General Enquiries: 0860 103 089
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Here are the contact details of the different areas where Bitprop operates in:
- Khayelitsha: Contact the Khayelitsha police station at +27 21 360 2375/2376 and the Khayelitsha Development Forum (KDF): Engage with the KDF to address community concerns and participate in meetings and forums.
- Eersterivier: Contact the police station at +27 21 902 8300
- Blue Downs: Contact the police station at +27 21 909 900
- Langa: Contact the local police station at +27 21 695 8000/8006
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