New World Property Group

What is the process of letting my property with your agency?

Our process is designed to be thorough and efficient, from listing to tenant placement:

Initial Consultation & Valuation: We begin with a complimentary consultation and property valuation. This helps us understand your specific needs, assess your property's market value, and advise on competitive rental pricing to attract suitable tenants.
Professional Marketing: Your property will be professionally marketed across leading property portals, social media, and our extensive network. We use high-quality photography and compelling descriptions to showcase your home effectively.
Tenant Sourcing & Showings: We actively source potential tenants and arrange property viewings, managing all inquiries and scheduling to minimize disruption to your schedule.
Rigorous Tenant Vetting & Screening: This is where we excel. We conduct serious and thorough vetting of all prospective tenants. Our comprehensive process includes:
- Credit Bureau Checks: We proudly utilise TPN Credit Bureau checks to verify financial standing and payment history.
- Employment Verification: Confirming stable employment and income.
- Previous Rental References: Contacting past landlords for behavioral and payment history.
- ID and FICA Verification: Ensuring legal compliance and identity confirmation. Our commitment to rigorous vetting helps us always secure good, reliable tenants.
Lease Agreement & Documentation: Once a suitable tenant is identified and approved, we handle the drafting and signing of a legally compliant lease agreement, ensuring all necessary disclosures and clauses are in place to protect your interests.
Deposit & First Month's Rent Collection: We facilitate the collection of the security deposit and the first month's rental from the tenant before occupation.
Key Handover & Incoming Inspection: We coordinate the key handover and conduct a detailed incoming inspection report, complete with photographic evidence, to document the property's condition at the start of the lease.

What fees are payable for your letting services?

Our fees are structured to be transparent and reflective of the value we provide in securing and managing your tenancy:

Tenant Placement Fee:
- For a 12-month lease agreement, our tenant placement fee is equal to one full month's rental. This fee covers all aspects of marketing, tenant sourcing, comprehensive vetting, and lease agreement preparation for the initial tenancy.
Lease Renewal Commission:
- Should your initial tenant choose to renew their lease with us, a renewal commission is payable. This is calculated at 6% of the total value of the renewed lease agreement. This fee recognizes the ongoing value of retaining a proven, good tenant without the need for a new placement process.

Please Note: Our aim is to ensure your property is managed efficiently and profitably, giving you peace of mind that your investment is in capable hands. Our rigorous vetting process is a testament to our commitment to always securing good tenants for your property.

Do you offer property management services?

Yes, we offer comprehensive property management services to provide you with peace of mind. Our monthly management includes:
- Rental Collection: Diligent collection of monthly rental payments from your tenants.
- Statements to Tenants: Providing clear and regular statements to tenants regarding their rental accounts.
- Income Statements to Landlords: Issuing detailed income statements to landlords every 6 or 12 months, depending on your preferred frequency.
- Maintenance Communication: Handling all communication with tenants regarding any maintenance issues or requests.
- In-house Maintenance Quotes: Providing quotes from our trusted in-house maintenance team for any necessary repairs or upkeep.
- Exclusion: Please note that project management for large-scale renovations or extensive repairs is not included in this standard management fee.
- Rental Payouts: We process and pay over the collected rental income to your nominated bank account around the 3rd of each month. Therefore, we recommend all our clients to schedule their bond repayment dates for the 5th of the month to ensure seamless financial management.
- Fees: Our property management fee is a competitive 7% of the monthly rental amount. This is below the average management fee in Johannesburg, which typically ranges between 8-10%, ensuring excellent value for our comprehensive services.

Please Note: Our aim is to ensure your property is managed efficiently and profitably, giving you peace of mind that your investment is in capable hands. Our rigorous vetting process is a testament to our commitment to always securing good tenants for your property.

What is the first step in buying/selling a home?

For buyers, the first step is typically getting pre-approved for a home loan to understand your budget. For sellers, it's usually getting a professional valuation or Comparative Market Analysis (CMA) for your property.

What are the typical closing costs or additional expenses when buying or selling?

Beyond the property price, buyers typically face transfer duty, legal fees (conveyancing and bond registration), and bond initiation fees. Sellers are primarily responsible for agent commission, and might also have compliance certificates and capital gains tax.

What is the standard agency sale commision?

In South Africa, the standard real estate agency commission for selling a home typically ranges between 5% to 7.5% (excluding VAT) of the selling price.

This percentage can sometimes be negotiated, and it's generally paid by the seller upon successful transfer of the property. In South Africa, there is no fixed or legally regulated standard commission rate for real estate agents selling a home. The commission is always negotiable between the seller and the agent.

What is FICA?

FICA (Financial Intelligence Centre Act) is South African legislation (Act 38 of 2001) designed to combat serious financial crimes. Its main goals are to prevent money laundering and terrorist financing, making it harder for criminals to benefit from illegal activities. It aligns South Africa with global anti-money laundering standards.

Why do I have to be FICA compliant?

You need to be FICA compliant because specific businesses and professionals, including real estate agencies, are legally required to verify your identity. This is necessary to:

Meet Legal Requirements: It's a mandatory law, and non-compliance carries severe penalties for institutions.
Fight Financial Crime: Your compliance helps create a "paper trail" that assists authorities in identifying and investigating suspicious financial activities.
Protect the Financial System: It maintains the integrity of South Africa's financial system, preventing it from being used for illicit purposes.
Protect You: It safeguards you from fraud and ensures that transactions, especially property deals, are legitimate and secure.

Common FICA documents for individuals usually include:

Proof of Identity: Certified copy of your SA ID or passport.
Proof of Residential Address: Utility bill or bank statement (not older than 3 months) showing your name and physical address.
Income Tax Number: Your SARS income tax number (if applicable).
Banking Details: Confirmation of your bank account (e.g., statement or bank letter).

For companies or trusts, more extensive documentation will be required.

What is a Mandate, and what types are there?

A mandate is a legal agreement between you (the seller/landlord) and a real estate agency, allowing them to market your property. It covers terms like price, commission, and duration. There are two main types:

Sole Mandate (Exclusive): You appoint only one agency for a set period. If the property sells, that agency earns the commission.
- Pros: Dedicated effort, single point of contact, focused strategy.
- Cons: Limited exposure

Open Mandate (Non-Exclusive): You can appoint multiple agencies. The agent who directly causes the sale earns the commission.
- Pros: Wider exposure, you receive multiple feedbacks
- Cons: Less dedicated effort per agent, less marketing budget spent per agent.

Choosing the right agent, who will guide you through the current property market is essential.

How to prepare for property photography?

Professional photography is crucial for attracting buyers.

Preparing for the day of the Photoshoot:

Declutter Everything: Remove all personal items, excessive furniture, and anything that isn't essential. Clear countertops, bedside tables, and shelves. Less is more – you want buyers to envision their belongings in the space.
Deep Clean: Ensure every room, surface, window, and floor is spotless. Pay attention to kitchens and bathrooms, which are key selling points.
Depersonalise: Remove family photos, unique art, and personal collections. You want the space to feel neutral and appealing to a wide audience.
Brighten Up: Open all curtains and blinds to let in natural light. Turn on all lights (even in daylight) to make rooms feel warm and inviting. Replace any blown light bulbs.
Address Minor Repairs: Fix leaky taps, tighten loose handles, and make small cosmetic repairs. These details matter for photos and viewings.
Exterior Appeal: Tidy the garden, sweep paths, put away bins, and ensure the entrance is welcoming.