At­lantic seaboard crying out for more long-term rentals

Weekend Argus (Saturday Edition) - - PROPERTY -

THERE is a short­age of properties for long-term rentals on the At­lantic Seaboard, ac­cord­ing to Helen Hoekstra, gen­eral man­ager of the Knight Frank Anne Porter’s At­lantic seaboard of­fice.

“One- and two-bed­roomed units are most in de­mand. It is dif­fi­cult, if not im­pos­si­ble, to find a bach­e­lor or one- bed­roomed flat for R5 000 a month and t wo- bed­roomed apart­ments are rent­ing out at a min­i­mum of R8 500 to R9 000.

“Ten­ants rent ac­cord­ing to what they can af­ford, and most can­not in­crease the amount they pay to­wards rent each month. In­vestors who buy properties to let should be aware of this and should be care­ful not to over­price their unit. It’s es­sen­tial to stick cl os­ely t o mar­ket- r e l at e d rentals,” says Hoekstra.

“Over the past year, which has been dif­fi­cult fi­nan­cially for most peo­ple, Knight Frank Anne Porter has tried to keep in­creases to a min­i­mum, aim­ing to keep good ten­ants who pay well, rather than in­creas­ing rents and hav­ing good ten­ants move out as they can no longer af­ford to live in a unit.”

‘We have tried to keep rental in­creases to a min­i­mum’

Hoekstra says the de­mand for units to rent on the At­lantic seaboard seems to ex­ceed sup­ply at the mo­ment.

“There are many young cou­ples and young pro­fes­sion­als want­ing to rent in this area be­cause of its con­ve­nient po­si­tion close to the CBD, ma­jor free­ways, quick ac­cess to the air­port and the many re­tail cen­tres.”

TPN’s Rental Pay­ment Mon­i­tor re­port for the first quar­ter of this year shows that ten­ant be­hav­iour has im­proved, with the pro­por­tion of ten­ants in good stand­ing in­creas­ing to 84 per­cent. Th­ese are ten­ants who pay on time or pay late but even­tu­ally do so.

The re­port says the best pay­ment cat­e­gories for rentals are the R3 000 to R7 000 and R7 000 to R12 000 cat­e­gories. How­ever, Hoekstra says the Knight Frank rental de­mand is at its high­est in the R3 000 to R7 000 cat­e­gory.

“An­other im­por­tant point to note is that, at 88 per­cent, the Western Cape is in the high­est bracket of ten­ants in good stand­ing, along­side Mpumalanga and Eastern Cape.

Of the three prov­inces it has the high­est per­cent­age of peo­ple who pay on time (78 per­cent).

“The TPN re­port shows that t enants’ rental be­hav­iour im­proved over­all in the first quar­ter.”

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