Demand for high price rentals in Cape Town

ACCORDING to the December Tenant Profile Network report the rental bracket above R25 000 is a difficult market to be in, as only 55 percent of tenants in this price segment pay rent on time.

However, Cathy Cockroft of IHPC estate agents, says that her experience of this market in Cape Town is very different.

“This is possibly because IHPC is a German-based company with strong connections to the European community in Cape Town and abroad,” she says.

Leases for residential property that she has signed up in the last two quarters have been predominantly in this price category, with rentals ranging from R14 000 a month for a onebedroom apartment to R45 000 for a three-bedroom apartment in the City Bowl and Atlantic seaboard areas.

“There was a lull in activity in November and December in the long- term residential rental market, possibly due to many landlords renting their properties out as short-term accommodation, which created a shortage,” says Cockcroft.

“In the last two months, there has been a surge in demand for good properties to rent long term and as fast as we can sign up new properties that are priced correctly to rent, we can sign up a tenant.

“Although short-term letting is sometimes tempting for landlords, long- term rentals are more stable and financially viable.”

She says there is a huge demand for properties to rent with up to 70 percent of her clients being foreigners.

She has had British clients who paid the two-month security deposit plus the full amount for the year’s lease for a luxury property on the Atlantic seaboard, as part of their relocation package, and another from Brazil paying six months’ rent in advance.

“It is usually a third of a person’s income that goes to rental (from an affordability perspective) and if they are prepared to pay around R20 000 to R30 000 each month, you know they are fairly financially secure,” says Cockcroft.

Examples of properties she has on her books to rent at present are:

● A pet- friendly 170m ² three-bedroom town house in a secure complex in Oranjezicht, within walking distance of De Waal Park and major schools.

● A furnished renovated 90m² two-bedroom apartment in Mouille Point, with views of the sea, mountains and the Cape Town Stadium, and within walking distance of the V&A Waterfront.

● A furnished 75m² twobedroom apartment in Camps Bay, with views of the beach, Twelve Apostles and Lion’s Head.

“Fortunately, we have never had problem clients who don’t pay their rent in full and on time,” she says.

For more information, call Cockcroft on 082 633 4484 or email cathy@ihpc.co.za.