1. Renting for 2010 Presented by Vivien Marks Assessment and Training Centre for Estate Agents December 2009

2. NOT A QUICK ‘GET RICH’ FIX!! There is an expected increase of 50% in tourism. Anything between 250 000 & 400 000 soccer fans Predicted that an extra 55 000 beds are required. Thus shortage of accommodation in Cape Town. Shortage of transport.

3. ADVANTAGES & DISADVANTAGES OF USING AGENTS Advantages of using rental agents: Core business Hold Fidelity Fund Certificates Have legal documentation Marketing strategies Aware of current rental market prices Aware of FICA requirements for accommodation Aware that the Rental Housing Act applies to all letting and (hopefully) they are familiar with this Act.

4. Disadvantages of using rental agents: High commissions Incorrect pricing of rental – very high rental quoted to gain a higher commission may be incorrect & property may remain empty Unregistered rental agents Agencies not taking sufficient care and interest in rental property Incorrect letting - agents too busy to meet a tenant’s expectations of accommodation

5. Disadvantages of using rental agents: cont… What precautions do agencies offer to counteract possible damages to a property? Often no proper inspections/attention or inventory Deposits - proof of having taken a deposit Lack of knowledge of legal demands Lack of correct documentation

6. Accommodation Draw took place last week – many soccer fans waiting for outcome before booking. See Fifa website for dates (www.fifa.com)www.fifa.com Expected that most bookings will be made from January - March 2010. All types of accommodation: hotels, guest houses, houses, flats, rooms and possible additional Backpacker accommodation in schools and hostels as well as ocean liner accommodation

7. Cost of accommodation: Extremely high rentals being quoted and obtained and even higher currently requested. Properties closer to stadium will achieve higher rentals. Rule of thumb: valuation and condition of property being taken into consideration e.g. R4 million house with all mod cons could demand R2000 pp per day, R2 million home could demand R1000 pp per day. Above with servicing of property such as cleaning, breakfast and linen. Transport can also be provided. Public Drivers Permit (PDP) necessary if driver provided

8. Cost of using rental agents: There is a wide range of agents commissions - between 15% - 30% What services are being offered for the commission that is being charged?...

9. PRECAUTIONS: - Compare rentals being demanded. Check if short term letting is permitted by the Body Corporate NO VERBAL AGREEMENTS Good application forms requesting all necessary details 35% - 50% of rental as a deposit payable in advance. Where possible get entire rental + refundable damages deposit in advance

10. PRECAUTIONS: - cont… Detailed inventory necessary Pack away valuables Remove telephone/suspend service Inspection form completed with tenants Short term Insurance available. Deals available for four weeks.

11. DOCUMENTATION: - Short term Agreement of Lease recommended. Management/Letting Mandate essential including terms & conditions: Arrangements for letting on behalf of owner Cost of rental Amount of commission Agents’ duties

12. DOCUMENTATION: - cont… Dates of payment Signatures of lease Insurance Inspections FICA Obligations of owner such as repairs, services & payment thereof

13. Conclusion: The World Cup is a once in a lifetime opportunity which can be turned into a good and pleasurable experience for all, if the rental agents concerned follow the EAAB’s Code of Conduct.