26 Jun To let or not to let
You’ve taken the step to invest in property but are not sure what to do with it. PrivateProperty.co.za gives some guidelines to help you decide whether to let it furnished or unfurnished. Click here to read it.
Caron Whitfield, head of Marketing and Distribution at the Apio Group says that letting your home fully furnished may have some cons to it, but there are measures you can take to reduce your risk. For example:
- Keep an inventory of all the contents that belong to you as well as any proof of ownership, such as purchase invoices, or photographs of the items;
- You are not responsible for any damage or theft of your tenant’s possessions, they should have their own insurance cover in place;
- Make sure that the property is maintained and any issues that are brought to your attention by your tenant are addressed as soon as possible.
- Make sure you have told your Broker that the property has been let as this may affect your insurance cover.
There are two main types of risks associated with letting your property, which are:
- If you, as a property owner, are held liable for loss or damage caused to your tenant and their possessions (for example they trip and injure themselves on a loose floorboard, or their possessions get damaged because of lack of maintenance of the property)
- Damage/injury caused to another property (a third party) by the tenant for which you can be held liable. E.g. if your tenant fires up your braai and the fire spreads to your neighbour’s fence or roof.