You may have purchased property for sale in Durban recently and are finding things tough in the rental market when trying to secure tenants. If this is the case, then the Atlantic Seaboard in the Western Cape could be the perfect example for you to take note of.
South Africa’s economic climate is not ideal at present, with a lot of pressure on consumers thanks to the increasing petrol price, high cost of living and other global pressures. There has also been the issue regarding land reform, which caused uncertainty in the market earlier this year.
However, you shouldn’t feel helpless despite tougher conditions as there is still an opportunity to enjoy steady rental income from your properties. The Atlantic Seaboard in Cape Town serves as a good example.
This highly popular area attracts a lot of interest in the market, but for the first time in about a decade, stock was rising at estate agencies as landlords sat with vacant properties that added to their monthly costs. It was an unusual situation, and with the technical recession, people around the country have been tightening their belts.
Mindsets had to change, and to give a clearer picture on what has happened since, Lisa Hendricks, rental specialist at Lew Geffen Sotheby’s International Realty, said, “Owners are understandably frustrated that they cannot achieve the same rental prices they did last year, but they are starting to realise that the market isn’t bouncing back overnight and that its far more costly to have an empty property than a good tenant at a slightly lower rental.”
Taking this into consideration, you should evaluate your current expectation of what rental prices are applicable. It is important to understand that although you may not be able to continue increasing rentals at the same pace as in previous years, being a little more lenient on your prices can prevent your property from sitting empty.
