Earn while on holiday

IF YOU happen to own a home in one of the country’s most exclusive areas, you can rake in the cash by renting it out for a few weeks, just like Neil*, the owner of a one-bedroom apartment in Cape Town’s Atlantic Seaboard, did.

His is getting paid a huge amount for going on holiday. He and his partner are heading to Hartbeespoort Dam to spend next month with family and friends. Colleagues gave them the idea to rent out their sea-facing apartment while they’re away.

“I decided to try to market the property myself and so, took some photographs and put together a write-up on the property. I sent these to my family and friends who live overseas, to share with their friends. Within a week, I had someone contact me about renting it for the four weeks I was away. We negotiated the price and rounded the sum down to R90 000.”

Arno de Wit, of Pam Golding Properties Property Rental and Management for the City Bowl, De Waterkant, and Foreshore, says average holiday lets on the Atlantic Seaboard vary from R1 500 to R6 000 a day for apartments, and R9 000 to R50 000 a day for villas.

“The Cape Town holiday rental market is set for a post-pandemic boom this summer. Occupancy figures are expected to be high.”

Echoing much of this, Nick Pearson, the chief executive of Tyson Properties, says the price of short-term lets along the Atlantic Seaboard varies drastically, depending on the property and the time of year they want to rent.

“The average rate is somewhere around R10 000 per day, however, this price escalates in peak season and the most expensive I know of is a rental that Tyson Properties concluded, in excess of R100 000 per day.”

James Carney, a Double Diamond agent at Tyson Properties Atlantic Seaboard, says studio apartments in Sea Point range from R850 upwards for off-season rentals and normally reach R1 500 in the peak season.

“A modest four-bedroom home in Camps Bay can reach up to R25 000 over summer and more modern homes in the same area have fetched R70 000.

“Large villas in Clifton and Bantry

Bay usually fetch the highest nightly rental rates which go back to the value of the property. I have concluded rentals for over R100 000 per night for two-week rentals in Clifton.”

This could be a “massive summer season” for Cape Town, with rates and occupancies expected to reach, and possibly exceed, pre-covid levels, says Ross Levin, the managing director for Seeff Atlantic Seaboard and City Bowl.

Levin says most establishments are fully booked, and the expectation is for a full recovery this summer. International visitors are also eagerly looking to return to South Africa.

“While flats in Sea Point and the CBD are more affordable at R2 000 to R20 000 per day, the average for the Atlantic Seaboard is around R15 000 to R30 000 but can go as high as R500 000 for a super luxury villa in the likes of Clifton. These are rare and often tend to be international bookers usually paying in dollars, euros or pounds.”

Ciska de Vries, short-term rentals agent for Seeff Hermanus, says their market has bounced back well, with bookings increasing by about 71.55%. This year, normal weekend bookings have doubled while long weekends and school holidays have been fully booked.

She says Seeff Hermanus’s short-term rental stock is booked well in advance for next year. Guests are expected to arrive from around the middle of next month, with booked periods ranging from 14 to 21 days.

“After the difficulties of the Covid period, property owners can again look forward to earning good rentals this summer, although rates have remained flat and have come down in some instances. In view of the economic challenges, guests are still looking for a good deal, or they book for shorter periods as their budgets are more restricted.”

De Vries says short-term rental rates for Hermanus and surrounds vary, depending on the time of year and the property. You could, for example, rent from around R1 000 to R7 750 a night.

Margie Smalberger, the rentals manager for Lew Geffen Sotheby’s International Realty in Knysna, compares the volume of rentals between the precovid period and today over the festive season:

¡ 2019: 54 rentals.

¡ 2021: 17 rentals. ¡ 2022: 75% full.

She says the franchise has eight properties available, ranging from R2 500 to R7 000 a night.

The short-term let market in Hartenbos was “very busy” last year, resulting in depleted stock, says Lezanne Schutte of Lew Geffen Sotheby’s International Realty in the area.

“But so far, this year seems to be quieter with fewer enquiries. We have six properties available for holiday rentals and, so far, there are bookings from December 23 up till January 3.”

She says rental prices have risen in the area. Rates are between R3 000 and R4 000 a night.

In KZN, David Cameron, Pam Golding Properties’ area principal in Ballito and Zimbali, says holiday bookings for next month are better than last year.

“We are up 12% from last year and it’s only November. Out of 21 homes we have listed in Zimbali, we have booked 12.”

He says the cost to book the properties ranges from R6 000 to R12 000.

Andreas Wassenaar, the licensee for Seeff Zimbali on the KZN North Coast, agrees: “Holiday bookings are expected to be back to pre-covid levels, with people set to flock to certain areas such as the North Coast, Ballito, and Zimbali.”

Peak season rental rates have, however, been fairly flat since the pandemic.

“Smaller units range from around R1 500 to R6 500 per night, while luxury properties go from R6 500 to R12 500,” he says.

The KZN South Coast also remains popular for its fabulous weather, Blue Flag beaches and holiday-friendly coastal towns, says Joleen Giraudeau, the manager for Seeff South Coast.

“The area is expecting an influx of holidaymakers over December. It is very affordable and most people book for one to two weeks, but many come for up to four weeks.”

She says the average rates are around R1 300 to R3 000 a night.

Sabrina Errico, Lew Geffen Sotheby’s International Realty broker principal in Ballito and umhlanga, says the average rental is between R1 500 and R4 000 in peak season.

“The rates can go as high as R8 000 to R10 000 per day for upmarket houses and larger apartments.”

* Name changed