A case reported
by one of our clients paints the picture perfectly: a quaint seaside cottage in
a remote village over-looking the Atlantic Ocean … having retired, the owners
decided to rent their holiday haven out over the festive season for the high
daily rental the season commands.
The couple
assumed that a family who paid the large deposit so quickly could also be
trusted to take care of their home and promptly left their front door key with
a neighbour.
To their horror
they discovered long after the deposit was returned that a temporary tenant is
not always a visitor who values your belongings! Missing artwork, water damage
to their newly installed floors and a self-fashioned indoor braai completes the
post-rental picture.
A furnished
unit is an easily damaged unit
A lot of damage
can be caused to a fully furnished unit within a short space of time and for
this reason, the importance of thorough in-going and out-going inspections
should never be underestimated.
Prior to a
short-term tenant occupying the property, you must have documented exactly what
items the property holds and the condition of those items. This will give you a
baseline to compare to when conducting the out-going inspection.
If you then
determine that damage has been caused by the short-term tenant, you have the
necessary proof to hold the tenant responsible for that damage.
Don’t forget
the house rules!
Another
important aspect to implement is a comprehensive set of house rules. When on
holiday, it is only natural that people loosen up and let their hair down. This
can lead to a level of disruption that they would not ordinarily subject their
own neighbours to.
Where the
entire area is exclusively made up of holiday units or where the property is
far enough away from neighbours, this can be acceptable. But all too often,
the areas that people go on holiday in overlap with the areas people retire in.
Noise complaints and a disturbance to permanent residents can mean body
corporate fines for the landlord.
A well-constructed
and comprehensive set of house rules should be in place to limit these
disturbances - the rules need to be referenced and attached to your holiday
lease agreement.
While it can be
a profitable time for short-term landlords, the ability to maximise on holiday
rentals is cemented with a lease agreement that has specifically been drafted
for holiday letting.
If you don’t
have one yet, the TPN Holiday Lease forms part of the TPN Residential
LeasePack.
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