Renting a Property with YellowSquare: Viewing, Affordability and Application Guide
Finding a property you like is only the first step. Before entering into a lease agreement, it is important to understand the viewing, application and vetting process, the affordability requirements, and the amounts that may need to be paid before occupation.
This guide explains the general process followed by YellowSquare Properties when assisting prospective tenants.
1. Before You Book a Viewing
Before arranging a viewing, consider whether the property is suitable for you and whether the monthly rental falls within a realistic affordability range.
As part of the rental application process, we generally assess whether the proposed rental is affordable in relation to the applicant's gross monthly income.
As a general guideline, we work on approximately:
35% of gross monthly income being available for the monthly rental payment.
Where one person's income is not sufficient to meet the affordability requirement, the income of two or more applicants may be considered together for purposes of qualifying for the rental.
Where the combined income of more than one person is relied upon to qualify for the property, those persons will generally be required to be included as tenants in the lease agreement and will be subject to the applicable application, vetting and FIA/KYC requirements.
This means that a person whose income is used to support the affordability of the rental cannot ordinarily be treated merely as an informal financial contributor while the lease is concluded only in another person's name.
For example:
| One Applicant – | Approximate Rental | Two Applicants – | Combined Gross | Approximate Rental |
| N$15,000 | N$5,250 | N$15,000 + N$15,000 | N$30,000 | N$10,500 |
| N$20,000 | N$7,000 | N$20,000 + N$15,000 | N$35,000 | N$12,250 |
| N$25,000 | N$8,750 | N$20,000 + N$20,000 | N$40,000 | N$14,000 |
| N$30,000 | N$10,500 | N$25,000 + N$20,000 | N$45,000 | N$15,750 |
| N$40,000 | N$14,000 | N$25,000 + N$25,000 | N$50,000 | N$17,500 |
| N$50,000 | N$17,500 | N$30,000 + N$30,000 | N$60,000 | N$21,000 |
For example, if one applicant earns N$20,000 per month and another applicant earns N$15,000 per month, their combined gross monthly income is N$35,000. Using the 35% guideline, the approximate rental affordability would be N$12,250 per month.
This does not mean that income alone guarantees approval. Affordability is considered together with the remainder of the application and the particular circumstances of the prospective tenants. Where combined income is relied upon, each person whose income forms part of the affordability assessment will generally need to apply, undergo the required vetting process and be included in the lease agreement.
2. Booking and Attending a Viewing
Where a property has scheduled viewing times, prospective tenants can select an available viewing session through our online viewing system.
For properties where individual viewing arrangements are required, you may instead be asked to request a suitable viewing time, which must then be confirmed with the responsible estate agent.
We encourage prospective tenants to view the property before applying so that they can satisfy themselves regarding:
- the location;
- condition and layout of the property;
- available parking;
- number and size of bedrooms;
- security;
- access arrangements;
- whether the property is suitable for the intended number of occupants; and
- any other features important to the prospective tenant.
A viewing registration does not constitute approval of a rental application and does not reserve the property.
3. What Happens After the Viewing?
After the viewing, prospective tenants who remain interested may be invited to proceed with a rental application.
The application process assists us and the landlord in determining whether the prospective tenant is financially and otherwise suitable for the property.
Where an application is made, all required information and supporting documents should be submitted accurately and completely. An incomplete application may delay the assessment or result in the application being rejected.
4. What We Consider When Assessing a Rental Application
The exact circumstances of each application differ, but some of the main factors generally considered include:
Affordability
We consider the applicant's gross income and whether the monthly rental is reasonably affordable.
Our general guideline is that approximately 35% of gross monthly income may be allocated towards rental.
We may also consider whether the applicant has other significant financial commitments that could affect the ability to pay the rent consistently.
Employment and Income
Applicants may be required to provide proof of income and employment or other reliable evidence showing the source and sustainability of their income.
Depending on the circumstances, this may include payslips, employment confirmation, bank statements or supporting information relating to self-employment or business income.
Payment and Credit History
Where appropriate and with the necessary authority or consent, relevant credit, payment or rental history may be considered.
A history of consistently meeting financial obligations may form part of the overall assessment.
Previous Rental History and References
Where relevant, previous landlords or rental references may be considered, including matters such as:
- payment of rent;
- conduct during the tenancy;
- care of the property; and
- compliance with previous lease obligations.
Number of Occupants
The number of people who intend to reside at the property is an important consideration.
A property must be suitable for the intended household, and the landlord may place reasonable limits on occupancy having regard to the nature and size of the property.
Applicants should therefore disclose all intended occupants accurately.
Identification and FIA/KYC Requirements
The necessary identification and client-verification documentation must be provided.
Depending on the applicant and the capacity in which the person is acting, this may include identification documents and additional information relating to a company, close corporation, trust or other entity.
Overall Suitability
Approval is not determined by one factor alone. The landlord may consider the application as a whole, including affordability, intended use of the property, occupancy, references and any other relevant circumstances.
The final decision whether to accept a prospective tenant remains subject to the landlord's approval.
5. How Much Money Must Be Available Before You Rent?
Prospective tenants should understand that renting a property involves more than simply having the first month's rent available.
Depending on the lease and property, amounts payable may include:
The full rental deposit
The deposit is generally payable when the lease agreement is signed.
The first month's rental
A full month's rental is generally required before occupation in accordance with the lease agreement.
Pro rata rental
Where occupation starts during the course of a month, a pro rata rental amount may also be payable for the portion of that month during which the tenant occupies the property.
As a general practice, the pro rata rental may be payable together with one full month's rental before occupation. Alternatively, depending on the agreed payment arrangement, the tenant may first pay one full month's rental before occupation and the pro rata amount may then be added to the rental payable for the following month.
Administration fees
Any applicable administration fees are payable together with the deposit when the lease agreement is signed.
Stamp duty
Where stamp duty is payable in respect of the lease agreement, it is payable together with the deposit when the lease agreement is signed.
Accordingly, a prospective tenant should be financially prepared for the deposit, administration fees and stamp duty upon signature of the lease agreement, together with one full month's rental and any applicable pro rata rental as required in terms of the particular lease arrangement.
6. Payment When the Lease Is Signed
Once an application has been approved and the parties proceed with the lease agreement, the deposit, applicable administration fees and stamp duty will generally become payable upon signing of the lease.
Payment of the deposit, applicable administration fees and stamp duty is an important part of securing the tenancy and complying with the lease requirements.
Any additional amounts required in terms of the lease will then need to be settled before occupation. This will generally include at least one full month's rental. Where pro rata rental applies, it may either be payable together with the full month's rental before occupation or, depending on the agreed arrangement, be added to the rental payable for the following month.
7. Before You Take Occupation
Before keys are released or occupation takes place, all amounts required under the lease to permit occupation must be paid and must have cleared in the relevant bank account.
This generally means that the deposit, applicable administration fees and stamp duty must already have been settled upon signature of the lease agreement, and at least one full month's rental must have been settled and cleared before occupation.
Where a pro rata rental amount applies because occupation commences during the course of a month, that amount will either be paid together with the full month's rental before occupation or, where agreed, carried forward and added to the rental payable for the following month.
Prospective tenants should therefore not assume that proof of payment alone will entitle them to occupation. The required funds must have cleared before keys are released or occupation is permitted.
All amounts required under the agreed payment arrangement must be complied with before occupation.
8. Applying Does Not Automatically Secure the Property
More than one prospective tenant may be interested in the same property.
Submitting an application does not necessarily mean that the property has been allocated to that applicant.
The application must first be assessed and submitted for the landlord's consideration where applicable. The landlord may then approve the applicant considered most suitable, having regard to the available information and the requirements of the property.
Prospective tenants should therefore avoid making irreversible arrangements until their application has been formally approved and the lease process has been completed.
9. Provide Complete and Accurate Information
Providing correct information from the outset helps us process an application efficiently.
Applicants should ensure that:
- contact details are correct;
- income information is accurate;
- all intended occupants are disclosed;
- supporting documents are complete and legible;
- information regarding employers or references is correct; and
- any relevant circumstances are disclosed when requested.
False or materially misleading information may adversely affect an application.
10. A Simple Summary of the Process
The normal rental process can be summarised as:
1. Find the property
Review the rental, location and property details.
2. Check affordability
As a general guideline, consider whether the rental is within approximately 35% of your gross monthly income.
3. Book or request a viewing
Use the property viewing link to arrange the viewing.
4. View the property
Make sure it meets your requirements.
5. Apply if interested
Complete the rental application and submit the required documents.
6. Application and vetting
Affordability, income, occupancy and other relevant criteria are assessed.
7. Landlord approval
The final application is considered and approved where appropriate.
8. Sign the lease and pay the deposit, administration fees and stamp duty
The required deposit, applicable administration fees and stamp duty are generally paid upon signing.
9. Settle the remaining amounts
At least one full month's rental and any other amounts required before occupation must be settled. Where pro rata rental applies, it may be paid together with the full month's rental before occupation or, where agreed, added to the rental payable for the following month.
10. Take occupation
Once the lease requirements and required payments have been completed, occupation can proceed on the agreed date.
Plan Ahead Before Applying
The best way to make the rental process straightforward is to plan ahead.
Before viewing or applying for a property, make sure that:
- the rental is realistically affordable;
- you have the necessary supporting documents;
- you can pay the applicable deposit, administration fees and stamp duty when the lease agreement is signed;
- you will be able to pay the first rental and any applicable pro rata rental as required before occupation; and
- the property is suitable for the number of people who will live there.
This helps avoid unnecessary applications for properties that may ultimately fall outside the applicant's affordability or practical requirements.
11. Watch Out for Rental Scams
SCAM WARNING: Never pay money to secure a viewing. Do not pay a deposit, administration fees, stamp duty or rental before the lease agreement has been approved and signed. Always verify bank details before making payment.
Rental scams are unfortunately common, and prospective tenants should take care before paying money or providing sensitive personal information.
Do not pay any money merely to view a property. A prospective tenant should be able to view the property, or follow the proper viewing process, without first being required to pay a deposit, rental or other amount to secure the viewing.
Do not pay the deposit, administration fees, stamp duty, rental or any other amount before the lease agreement has been approved and signed, unless a different legitimate arrangement has been clearly agreed and verified.
In particular, prospective tenants should be cautious if anyone:
- asks for money before allowing you to view the property;
- asks you to pay a deposit simply to “reserve” or “hold” the property before a lease agreement has been signed;
- pressures you to make an immediate payment because there are supposedly many other interested tenants;
- refuses or avoids allowing you to view the property;
- offers a property at a rental that appears unusually low compared with similar properties;
- asks for payment into bank details that have not been provided or verified through the proper rental process;
- suddenly advises that previously supplied bank details have changed;
- communicates only through an unverified social media profile, WhatsApp number or email address;
- asks you to send money to an unrelated third party;
- asks for your banking PIN, password, OTP or other confidential banking information; or
- provides documents or payment instructions that appear inconsistent with the property, landlord or estate agency involved.
Always verify bank details before making payment. If bank details are provided or subsequently changed, confirm them directly with the responsible estate agent or YellowSquare Properties using contact details that you already know or that appear on the official YellowSquare Properties website. Do not rely only on the telephone number, email address or banking details contained in a suspicious message.
Prospective tenants should also verify that the person advertising or showing the property is legitimately connected to the property or estate agency. Where a property is advertised through YellowSquare Properties, you may independently confirm the property and responsible estate agent through our official channels.
Never allow urgency to replace proper verification. A legitimate rental process should provide you with an opportunity to view the property, complete the required application and vetting process, receive approval, review and sign the lease agreement, and then make the required payments in accordance with that agreement.
If anything about a property advertisement, payment request, bank account or person claiming to represent YellowSquare Properties appears suspicious, do not make payment until you have independently verified the information with YellowSquare Properties.
Please note: This guide explains the general YellowSquare Properties rental and vetting process. Requirements may differ depending on the property, landlord, applicant and terms of the particular lease agreement. Approval of any application remains subject to the applicable vetting process and the landlord's final approval.