Don’t miss opportunities now for 2010
AS EXCITEMENT mounts before the 2010 Fifa World Cup, many home owners are eagerly anticipating the potential income they may secure by renting out their homes to soccer fans.
But, cautions Pam Golding Properties’ Western Cape rentals division, they must be careful not to jeopardise long-term rental agreements in exchange for possibly scoring a quick return over the short duration of the tournament.
“It is still unknown just what the uptake of rental properties or the rentals payable will be during the World Cup,” says PGP’s Western Cape rentals director, Dexter Leite.
“Many fans will be moving between cities to attend several matches, and may find it easier to stay in hotels or accredited B&Bs, which they can source easily online through the official accommodation supplier, Match. There will, of course, be some fans who opt to base themselves in a particular city, and for whom renting a property will indeed be a better option.
“But we would advise home owners to proceed with great caution, as this market might not be as large as they expect. It would be very shortsighted for home owners to turn down good long-term leases now, in the hopes of securing exorbitant rentals for the four weeks of the World Cup. They risk competing against a potential oversupply of rental properties, or encountering price resistance from visitors, and may end up sitting with a vacant property when they could have had a long-term tenant in place.”
Leite says there is much activity in top-end Atlantic Seaboard rentals, and this is one area where the potential for World Cup contracts is quite high.
“Your average football fan will already have paid a lot of money for a long-haul flight to South Africa, and will probably be looking for moderately-priced accommodation, possibly moving between a number of different centres. However, wellheeled clients or high-flying international business travellers may prefer to secure upmarket bases for the duration of the tournament, and possibly the weeks before and after.
“But again – although there is potential for good rental returns for luxury homes – we advise clients to take a long-term view, and not risk current deals for future short-term gains that may not materialise.”
Leite says luxury homes on the Atlantic Seaboard are fetching around R10 000 a room a month.
There is particular demand from businesspeople relocating to the Cape who wish to rent while they get a feel for the city and decide which suburb they would like to buy in.
PGP recently secured a long-term lease at R49 000 a month for a threestorey, four-bedroom home in Bantry Bay, with superb views, spacious entertainment areas and a pool deck. It has been let to a family for 18 months.
“Although we wish owners every success in achieving the best possible returns, we say don’t miss other opportunities for a possible shortterm gain which is not guaranteed,” Leite said.
IDYLLIC: The sunny pool deck and lovely ocean views are key features of this triple-storey, four-bedroom
home in Bantry Bay, which has recently been let by Pam Golding
Properties on an 18-month lease, at R49 000 a month.