Atlantic seaboard crying out for more long-term rentals
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.”