LANDLORDS: COSTS AND FEES
Costs and Fees for Landlords
Whats New:
This is La Grande's New Web Site.
February 2011
Please feel free to give your comments on La Grande's new website, by clicking on Contact Us in the Main Menu.
Current News
Interest rate Cut
November 2010
On 18 November 2010 The Reserve Bank has anounced that the repo rate is reduced by 50 basis points. This means that the banks will reduce their prime lending rate down to 9%.
Recent Events
No Transfer Duty or Capital Gain Tax?
February 2011
For those of you who have their primary residence registered in a CC., Trust or Company, now have the opportunity to transfer the property into your own name, with out paying transfer duty or capital gain tax. Before you take any action, consult with your finacial advisor to establish whether this will be to your advantage. Then consult with your transferring attorney to establish whether you will qualify not to pay transfer duty and capital gain tax. Then establish with your bank wheteher you will qualify for the outstanding bond amount. You have to take action before the end of 2011.
COSTS AND FEES FOR LANDLORDS
We at La Grande are aware that Landlords have different requirements when it comes to the letting of their properties. We there for have compiled three package deals and gave them the following designated names;
Silver Package Deal,
Golden Package Deal and
Platinum Package Deal.
COSTS AND FEES FOR SILVER PACKAGE
The Silver Package Deal is compiled for those Landlords who feel more comfortable by managing the letting of their properties themselves, but prefer to outsource the procurement process.
The Cost of the Silver Package is as follows.
Tenant Procurement Fee
The fee consist of R500.00 plus 7% of the total value of the lease (i.e. the monthly rent multiplied by the number of months for which the lease agreement is concluded) or R2 500.00 which ever is the greater. (The R500.00 is payable by the tenant)
Example: If the rent is R6000.00 pm, the total once of fee will be
R500.00 + (6000.00 x 12 x 7%) = R5,540.00
Click here to view the activities/tasks of the silver package.
COSTS AND FEES FOR GOLD PACKAGE
This package deal specifically caters for the Landlord who prefers to outsource the letting and managing of the lease, but prefers to manage the financial matters regarding the letting of his property, himself.
The Cost of the Gold Package is as follows.
Tenant Procurement Fee
The fee consist of R500.00 plus 2% of the total value of the lease (i.e. the monthly rent multiplied by the number of months for which the lease agreement is concluded) or R1 000.00 which ever is the greater. (The R500.00 is payable by the tenant)
Example: If the rent is R6000.00 pm,
The procurement fee will be = R500.00 + (6000.00 x 12 x 2%) = R 1 940.00 (once off)
Plus the monthly Administration Fee of 8% of the monthly rent.
Monthly Administration Fee = R6 000.00 x 8% = R480.00
Total annual cost for first year = R1 940.0+R480.00x 12 = R7 700.00
Click here to view the activities/tasks of the Gold package.
COSTS AND FEES FOR PLATINUM PACKAGE
This package deal specifically caters for the Landlord who prefers to focus on his future investments while somebody else looks after his existing investments. This type of Landlord usually has more free time to spend with his family and for traveling overseas to visit their children.
The Cost of the Platinum Package is as follows.
Tenant Procurement Fee
The fee consist of R500.00 plus 2% of the total value of the lease (i.e. the monthly rent multiplied by the number of months for which the lease agreement is concluded) or R1 000.00 which ever is the greater. (The R500.00 is payable by the tenant)
Example: If the rent is R6000.00 pm,
The tenant procurement fee will be
= R500.00 + (6000.00 x 12 x 2%) = R 1 940.00 (once off)
Plus a monthly Administration Fee of 10% of the monthly rent.
Monthly Administration Fee = R6 000.00 x 10% = R600.00
Total annual cost for first year = 1940.0+600.00x 12 = R9 140.00
Please note that La Grande is exempted from charging Vat.
Click here to view the activities/tasks of the Platinum package.
