There have been a few threads which touched on this topic, and I would like to expand on it, with some questions to the experts, especially Houses4Rent, whose posts I follow with great interest.

I have been a small scale landlord for many years, mostly CBD apartments in Durban.

3 years ago I took a bigger step – purchased a 3 bed townhouse in a good area.

The timing was right for capital growth, it appreciated nicely, and I had an excellent tenant.

The tenant has now given notice, and the townhouse is being advertised for rent again, at a market related rental. I do all my own tenant management, using Private Property for the advertising, and TPN for application, lease, inspection etc. Both companies are excellent and have served me well in the past.

It will be interesting to see what rental applications I receive. I would like to see high quality renters, with a good track record of payment, affordability not an issue, sound financial management demonstrated by bank statements. However, I would not be surprised to see potential renters who have affordability issues and poor financial management.

I always do a credit check through TPN, and ask for a rental payment history, to show they are reliable rent payers. Most applicants are happy to provide a copy of a payslip, but may be reluctant to provide bank statements.

What is the general consensus re what can be asked of applicants regarding financial status? If they were applying for a home loan, the banks will ask for everything, is applying for a rental any different? As the landlord one is handing over a very valuable asset, to a tenant that one does not know very well, and if one chooses the wrong tenant it can be a financial nightmare.

By the way, I did insure the rental income previously via Tenrisk, and will do this again.

Houses4Rent, any comments and advice?

I admire your Cape Town residential rental operation and wish you could operate in Durban as well