The Tenant Toolkit

Tenant overview

Tenants are the bread and butter to your property business. They provide your income, so it's vital they feel valued. Let's explore how to make their experience straightforward and enjoyable.

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Long-term tenants mean stable income - when tenants are happy, your business thrives! It takes the right attitude and actions. We covered soft skills in the 'Growth Strategies for Success' module. Now, let's go step-by-step on handling tenants.

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In this module – we will cover the following:

1. Tenant roles, responsibilities and lease agreements: we explains the lease agreement and the difference between tenants legal responsibilities versus your house rules.

2. Marketing to tenants: finding tenants for your flat is one of the tasks we encourage you to perfect during this partnership so we explain how to find them.

3. Incoming tenants: Living in a Bitprop flat can be quite different to other flats so here's how to help your new tenant move in without any hiccups

4. Current tenants: Here, we breakdown step-by steps on living in a Bitprop flat but also give some tips on how to keep your tenants for as long as possible

5. Outgoing tenants: Moving out of a Bitprop flat is admin for you, the tenants and Bitprop so, to avoid issues when the time comes, here's how it should go.

This toolkit will provide everything you need for our partnership regarding tenants. It will change your daily routine, but with guidance from this module, looking after tenants could even become the best part of your day!

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Tenant roles, responsibilities & the Lease agreement

The legal agreement between a landlord and a tenant is a lease agreement. This describes the legal roles and responsibilities of the tenant and of the landlord. It's important to know that the lease agreement is between Bitprop and the Tenant. This means that the contract is between Bitprop and the tenant, making Bitprop the legal landlord. We have leases because they are legal proof of the relationship between the landlord.  

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Here is an example of the lease

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The above link is the lease agreement that all tenants sign but to save time – here is a summary of all the information in the lease agreement:

• Notice period: if the tenant wants to end the lease, they must give 30 days' notice, as is the standard in most rental lease agreement.  

• Payment date: the tenant must pay rent by the 1st of every month. There might be special circumstances where they can pay in the middle of the month because it is for the following month. This is because rent must be paid for the month in advance.  

• Keys: if a tenant loses their keys, they must pay for replacements to be made. As a landlord, you will have an extra set of keys for maintenance or emergencies, so your set of keys should not be given to a tenant.  

• Homeowner access to a flat: you and Bitprop, for example – the maintenance team, cannot enter a flat without the tenant's permission unless it is an emergency. If the flat needs to be entered - the tenant needs to give their permission, and they should arrange an appropriate time.  

• Breach of contract: if a tenant breaches the contract, they can be evicted and lose their deposit. We will break down what a breach of contract looks like when we look at current tenants

• Deposits: the tenant is required to pay a deposit equal to one month’s rent. Bitprop must return the deposit plus interest, but can deduct costs for maintenance or damage to the flat if it is not in the condition the tenant found it in. If a tenant does not give 30 days’ notice, or fails to pay rent, the deposit may also be kept to cover costs and rent.  

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The tenants in your backyard also have standard rights and responsibilities. They can be summarised as follows:

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Rights

• Tenants have the right to a lease agreement and may ask for a copy if they can’t access it online
• Tenants are entitled to receive a written notice of any rent increases at least 30 days in advance so that they can give notice and leave, should they not accept the increases
• Tenants are entitled to their privacy and peace while living in your backyard
• Tenants have the right to ask you as the landlord about any issues or challenges that they might have while living in your backyard

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Responsibility

• Maintain their flat in good condition
• Report any maintenance issues or necessary repairs in time
• Respect neighbours and follow property rules
• Tenants must live peacefully in the flats without disturbing you or other tenants

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And that is the long and the short of a lease agreement with Bitprop. We would like you to know that there is a difference between the lease agreement and your house rules: the lease agreement is a legal and contract while your house rules are more of a social contract. Your house rules are more of your preferences but they are a good way to manage your property.

Please remember what a tenant can or can't do while they are living in your backyard so you are able to not only live comfortably with your new neighbours but also know to instruct them if they are confused.

Marketing to Landlords

As a landlord looking to have a successful property business, having certain business skills are important and today we'll be talking about one of them: Marketing! Marketing is about helping people understand the best parts of your product or service. For you, showing off your quality flats can be fun but it will also need you to show your tenants what living in your backyard will probably look like.

Bitprop normally assists you as you look for new tenants but we encourage you to take the reins of this process as soon as possible. So here is how to look for good quality tenants:

• When the flats are available, homeowners and Homeowner Relationship Managers are to work together to find tenants. In our experience, the most successful place to advertise is Facebook Marketplace.  

• They should advertise the flats here and in any other location where they might find tenants. Homeowner Relationship Managers will also advertise on Facebook Marketplace. There are a few other websites where you can advertise your flats for free:
  • RoomKing: https://www.roomking.co.za
  • Rent bay: https://www.rentbay.co.za/to-rent-property/advertise-free  
  • Gumtree: https://www.gumtree.co.za/post.html  
  • Locanto: https://www.locanto.co.za/  
  • SA Properties: https://www.saproperties.co.za/index.php/how_to_advertise_on_SA_Properties  
  • Bob shop: https://www.bobshop.co.za/content/18/List_your_Property_for_Free.html  

Please note that Bitprop does not make use of these platforms as Facebook Marketplace is quite successful but different platforms tend to bring different types of people so if you would like to test these website – go for it!

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When putting together the advert – consider the following:

1. Take good photos of the interior of the flat – showing all the features of the flat, like the bathroom and the kitchen, etc.

2. Write the feature of the flat in the description on Facebook marketplace. Give the text a once over to check for any spelling mistakes.

3. Also, write up the kind of tenant you are looking for, for example, I am looking for tenants that values privacy and mutual respect OR looking for tenants with no cars, etc.

4. Regularly checking your inbox in case of interested tenants – a quick response time is a great way to be professional from the very beginning.

Incoming tenants

Once you've started advertising the flats – the work has just began. Picking a new tenant is like a job interview – the goal is to get to know each other and figure out if you have common mindsets on working together. You speak to different people, ask questions, and if you like each other – you make it official!

The journey of a tenant from interested to living in one of your flats is detailed but set so that you get the best tenant possible. So here's the step-by-step:

1. Once your advert is up – a tenant might show interest in the flat. They have already reached out to you and show interest in living in your backyard.

2. You and the tenant organise a viewing. Viewings are important – Bitprop will not sign a lease with any interested tenants who have not viewed the apartment because they need to have a proper understanding of how much space is there.

• Tip: Schedule a few viewings on the same day

3. The tenant views the flat that they would like to move into. It has to be specific as different flats can have slight differences that either make the tenant happy or is a deal breaker.

4. Screen your potential tenant by finding out more about their personality. Your new tenants will be living in your backyard so it is important that you get to know them better so you are comfortable with theme.

5. If you like the tenant, you should follow up with them to see if they would like to take the flat.

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If you do not think the tenant will be a good fit or if they drop out – here is how you can go about the closing off the conversation:

6. If the tenant agrees to take the flat, send their details to your Homeowner Relationship Manager. Your Homeowner Relationship Manager will sent the tenant a form to fill in that will gather all the important information for Bitprop to be able to write a lease. Bitprop also requires the following from the tenants for a financial background check:

• Payslip
• ID Copy
• Bank statement

We also encourage you to ask any potential tenants to do a criminal background check with SAPS and that is called a Police Clearance Certificate (PCC):

• To apply for a PCC through SAPS, you'll need to:
  • Complete an application form
  • Provide a certified copy of your identity document or passport
  • Provide a full set of fingerprints taken by the SAPS
  • Pay the non-refundable application fee of R180

7. If Bitprop deems the tenant as financially viable, we will send the tenant a digital lease agreement for them to sign.

8. Once the lease is signed – the tenant will be obligated to pay a deposit equal to 1 month's rent and the first month's rent. They are also scheduled to move into their flat on the 1^st of the next month at 2pm.

9. On the 1^st of the next month, the tenant will be sent an incoming inspection form which needs to be filled in on the day. This document is important because during the tenants stay, they might cause damage that needs to be repaired. Once they move out – we need to compare the flat to something so that any damage they cause comes from their deposit as it would be their fault.

• ‍An Incoming Inspection Form for a flat is a checklist used to record the condition of the apartment when a tenant moves in, noting any existing damages or issues to avoid disputes later.

Current tenants

Proof of Payment, Maintenance line, mould prevention - phrases that might not have been part of your vocabulary before partnering with bitprop but will soon become one of the most common. Keep tenants in your flats will be work - a second job actually but it can be manageable if you know how to proceed. So let’s learn all about it:

Payments

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Managing Tenants

Breach of contract

If a tenant breaches the terms of the lease agreement, a breach of contract occurs. Depending on the severity of the breach, the tenant may be given an opportunity to rectify the situation within a specific period.

There are a few conditions that require notices to be given. One to note in particular is if a tenant has not paid rent. In this case, the tenant will be given 7 days to rectify the non-payment. If, after 7 days, they have still not paid, they will be sent a notice to vacate the flat within 48 hours.

In cases of non-payment, fraud, criminal activity, excessive occupants, or disruptive behaviour, immediate termination of the lease and eviction may be necessary. The Homeowner Relationship Manager will guide homeowners through the process and ensure proper documentation.

Outgoing tenants

• Developing good relationships with tenants.  
• Outgoing tenant management and inspections.  

When a tenant decides to move out, an outgoing inspection is conducted within the week before their departure. The Homeowner Relationship Manager and tenant assess the condition of the unit, documenting any issues. An invoice will be sent to the tenant, deducting the maintenance costs from their deposit, which will be paid to them after they have vacated the premises. If the tenant fails to remove their belongings, you may claim them to account for damages.  

• Deposit refund process.  
• Bitprop’s moving protocol.  

Ending a Lease and Refunding Deposits

When a tenant’s lease needs to end, there are two possible reasons. Either the tenant has given notice and has chosen to leave, or they are in breach of contract.  

1. If the tenant has given 30 days’ notice, they are entitled to their deposit + interest.

2. If they have not given sufficient notice, they are not entitled to their refund, as they have not been provided with time to find another tenant.

3. Before the tenant moves out, an outgoing inspection must be conducted with you, your Homeowner Relationship Manager, and the tenant. Any maintenance that needs to occur due to the tenant will be deducted from their deposit before it is refunded. To confirm whether something is due to the tenant or not, we will compare the state of the flat with what was recorded in the incoming inspection.

4. The deposit balance will be refunded to the tenant on the 7th of the following month. The homeowner should make sure the tenant fully understands how the deposit system works.