World Cup rentals ‘not a sure bet’

Weekend Argus (Saturday Edition) - - PROPERTY -

AL­THOUGH the busi­ness com­mu­nity – and the tourist in­dus­try in par­tic­u­lar – con­tin­ues to wel­come and pro­mote the 2010 World Cup hype, this is lead­ing to a po­ten­tial over-sup­ply sit­u­a­tion in short term res­i­den­tial rental ac­com­mo­da­tion, says Lan­ice Stew­ard, manag­ing di­rec­tor of Anne Porter Knight Frank (APKF).

“APKF runs ac­tive rental ser­vices in many of the ar­eas likely to prove pop­u­lar with World Cup vis­i­tors to Cape Town, and we have found that the hope of al­most lu­di­crously high rentals over the World Cup pe­riod has led to many home and flat own­ers hold­ing back from sign­ing on long-term ten­ants.

“It re­ally con­cerns me that many flat own­ers will find they can­not get World Cup ten­ants – then when we are back to nor­mal­ity in July and Au­gust they will dis­cover that the long-ter m rental mar­ket is now flooded with new op­por­tu­ni­ties.”

R i g h t n o w, S t e w a r d s a y s , de­mand is strong for long-ter m rentals in Green Point, Sea Point and Camps Bay.

“We have had oc­ca­sions where 20 to 30 applications have come in for an apart­ment and where peo­ple have been pre­pared to pay more than the ask­ing rate.

“I think it might well pay many land­lords to sign up good ten­ants now rather than to hope for high re­turns in April, May and June, which could well not ma­te­ri­alise,” Stew­ard says.

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