Some advice for tenants...just to be fair!

Before you ask, no I did not die, nor did I go to hospital or even on holiday...I just have not had anything of value to add to your cluttered minds, and as the old saying goes, " Rather keep you mouth shut and let others think you are stupid, than open it and remove all doubt!"

Anyway, I finally have something of value to discuss today...well, I think it's important anyway. Several of my friends are tenants, either in business premises or residential properties. As you can imagine, they always have loads of questions for me, most very mundane and not worth going into here. But one particular question has come up several times and I was concerned at the lack of knowledge of the public, and because of this ignorance how they are being ripped off by my nemeses, the unscrupulous estate agents in Zimbabwe.

The question is...Is it right that the estate agent is charging VAT on top of the rental price stated on the lease agreement? Ok, so go and have a look at your lease. If it says x amount per month excluding VAT then, yes you need to pay VAT on top. But this scenario is very unusual as all prices in Zimbabwe are generally quoted including VAT. If the lease does not state whether the VAT is included or excluded, then it is assumed to be included, again, as this is the standard procedure for prices in Zimbabwe.

If you are being asked to pay for VAT on top of the rental and it does not clearly state the VAT is excluded from the price on your lease, then the simplest thing to do is to refuse to pay it. The estate agent trying to pull a fast one on you, is hoping to get more rent for his landlord, and more commission in his pocket.

Here are the things which you are, by statutory law expected to pay as a tenant:
1. Phone Bills
2. Electricity
3. Water Bills
4. Garden and pool maintenance
5. House cleaning
6. Insurance of household contents

More often nowadays, the tenant will also be responsible for the rates or levies on the rented property. This is perfectly acceptable, provided that this clause is in your lease. If it is not, then you are within your rights to ask the landlord to pay the rates and/or levies.

The landlord should pay for all structural defects and defects in fittings, like pool pumps, borehole motors, geysers, as well as insurance of the property and buildings. However, if you have signed a full insurance, repairs and maintenance lease (otherwise known as FRI lease) then you will be responsible for all costs associated with the property. If you do have such a lease, then your rental should be below the going market rate for a similar property as the one you are leasing.

Don't get caught by estate agents preying on you ignorance. Always have someone in the know check over your lease BEFORE you sign it. You can also insist on the rental price being inclusive of VAT so that there are no hidden expenses.

Visit my website http://www.pageproperties.co.zw for a look at the properties on offer. You can also leave me a message and I will be sure to get back to you.

Know your rights as a Landlord

In the past few weeks, I have come across so many people who do not understand the role of their managing agent or their own rights and duties as a landlord. I have decided to debunk the myths and misconceptions that have been allowed to grow, and hopefully, enable you to demand the service you deserve from your agent.


What is an agent? Basically, someone who has been given authority by a principal or landlord to act on his behalf. The agent is obliged at all times to put the interest of his principal above his own, and to conduct the business of his principal as if it were his own. How many of you can say this is the case with your agent? I would love your feedback, so we can discuss this topic.


Your duties as a principal or landlord are to disclose all relevant information about the property and to pay the agent for the work done on your behalf, this is the commission you pay.


What are the duties of the agent? These vary greatly, and you should find them in the mandate letter you have signed with the agent. This is the contract you have entered with the agent. So many agents put the mandate into the lease agreement. This is not correct as, the contract is between you and the agent and not you, the agent and the tenant. If you don't have a mandate letter signed, you should ask your agent for one, as this protects you and also allows you to terminate the contract with the agent if they are not fulfilling their duties.


In my mandate letters I include the following as my duties to the landlord:

•  Vetting references and selecting a suitable tenant.
•  Negotiation of the lease and rental, and the completion of the necessary contract.
• Collection of all rent and a provision of a statement every month. Close control of late and non-payment. (It is a legal requirement for you to receive a monthly statement showing rent received, commission deducted and expenses incurred to maintain the property. You must demand one if you are not receiving one!)
•  Routine quarterly inspections, and attendance to all necessary repairs and maintenance. In this case we will refer to you before incurring any expense that is out of the ordinary.
• Constant review of the lease and rent. In terms of the Rent Regulations 2007  Clause 39.4 “ The lessor of a dwelling may be permitted to apply for a variation of the standard rent after six months from the date of the signing of the lease agreement. Any variation of the standard rent which is 30% or less does not require approval by the Rent Board.”
•  Signing the lease agreement and all subsequent leases, having your power of attorney to do so. (Some landlords insist on signing their own lease, which is also fine.)

      Don't allow your agents to walk all over you, remember you employ them and you can fire them, giving three months' notice of the fact that you no longer require them to manage your property, of course this may be subject to the contract you have signed with them.

     Do you feel you are getting the best service? Let me know your thoughts and let's put a stop to unscrupulous agents taking advantage of the ill-informed public!

Make money in your sleep...

We all know that investing in property is a good way to secure your money. In today’s world, banks are not a safe option and investing on the stock market is highly risky and you are more likely to lose money than make money. Experts now agree that not only is investing in property a good way to secure your money, but it is now considered one of the best ways to make money while you sleep…passive income! Passive income is the way the richer get richer. The rich all own property, that is not a coincidence, it is a careful business strategy. With your investment doubling every 7 years, one would be crazy not to put your spare cash into property.

Going back to Location! Location! Location! -  if you buy property in the right area at the right price, you will see your investment grow in value. Property prices fluctuate far less than other investments and are not as susceptible to cyclical fluctuations as shares on the stock market. Property has always been a great way to secure loans or mortgages for your business as it is a tangible collateral and far more acceptable than share certificates or bank balances as both of the latter can be lost overnight!

So how does property make you rich:

•   Its value appreciates between 5 and 20% per annum depending on where it is in the world. Prices in Southern Africa have had the biggest appreciation year on year than anywhere else in the world. You don’t have to actively improve your property for it to appreciate in value. You can buy it and sit on it and it will quietly make you money while you sleep.
• Buy bargains and wait a few years and sell for a sweet profit. Look out for up and coming areas and have the foresight or seek advice on the best areas to buy in order to see a big return on your investment.
•   Rental income on your properties not only gives you a monthly income, but it can be used to pay off the mortgage if you bought the property through the bank. There are lots of scheme in Europe and Great Britain which are specifically designed for this type of property investment. "Buy to Rent", as the schemes are called, are designed for the property investor who does not have all the cash upfront. The bank lends you most of the money and your tenants service the bank loan. That’s how to get rich with someone else’s money!
•  Houses can be bought to renovate and resold quickly. Remember not to overcapitalize or personalize the homes too much, as this limits the pool of buyers. Look for cheap houses in good areas and do them up for a quick turnaround profit.

Property is by far the best investment to make. Your money is secure, it is tangible and it makes you money if purchased at the right time in the right place. Remember there are not enough houses to supply the ever growing population. When demand outstrips supply, prices will escalate. With a new surge of returning residents from the diaspora, the demand for property is increasing in Zimbabwe. Now is the time to buy property, and sit back and make a sweet mint on your investment.