So, who are we and what do we offer?
Well, it all started off years ago when I started renting out my properties (2005). I soon found out that there are tenants that will pay for electricity, alcohol, cigarettes and many other things but pleaded poverty when it came to paying their rent...
As you all know, these non-paying tenants can cause you a lot of headaches and loss of income.
Month 1, no payment received, send final demand letter (if you know the correct format and when/how to send it), wait 21 days, still no payment, well then, the expensive chapter starts, you need to approach a lawyer and request an eviction notice.
Do you know what the cost is for an eviction notice? Anything from R8 000 upwards... and it can go very high.
Don’t forget that it can take anything from 2 months and longer to get an eviction notice. To make matters worse... if tenant has kids and is single mother... you can wait forever for court to give eviction notice.
So, do the calculations. Eg. Your rent was R8 000 per month. In event you get “easy” eviction at cheap price of R8 000. You would have lost 4 months’ rent plus the R8 000 legal fees. Total of R40 000 lost, or nearly 50% of your yearly rental income... and then you better hope the tenant didn’t cause a lot of damages to your property.
That is why a lot of people will tell you not to rent out your property.
The first step I took was to install prepaid water and split electricity meters (not standard meters because some tenants bypass these meters, even if it has a tamper feature) after losing thousands on rent and legal fees.
I then started thinking about the way certain hotels operate. They have an access card to open their hotel room door. So, if you only paid for 5 nights’ accommodation and you want to enter your room on night 6, the door would simply not open. Whose fault is that?
I then found software that allowed me to combine the rent, water and electricity into a single account. This way, the rent will be debited on the 1st of the month, if the tenant has sufficient funds in his prepaid account, the rent will be deducted first and the balance will be available for prepaid water and electricity.
Guess what happens when he does not have sufficient funds?
We NEVER cut any services.
The only thing you as a Landlord or Letting Agent must make sure of is that your lease agreement stipulates that the rent, water and electricity will be recovered via the prepaid system and that your tenant agrees to the terms and conditions as set out in the lease.
Our prepaid system works for any residential or commercial property you rent out as well as apartment blocks and retirement villages. Note, we do not replace municipal metering or meters. You are still responsible to pay municipal account. These meters can be installed by any qualified electrician or plumber.
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