Increase in demand for rental homes

2016-04-21 06:00

There is currently high demand for rental homes in the Eastern Cape towns of Uitenhage and Despatch and this makes them hotspots for property investors.

“Unfortunately, however, it also makes them a magnet for an increasing number of unlicensed managing agents who are definitely not acting in the interests of local landlords,” says Charlotte Vermaak, director of the Chas Everitt International franchise in Nelson Mandela Bay.

“There are also many private landlords in these areas who are not aware of the legalities that need to be observed when renting out property, and it is primarily to assist them that we have decided to extend our rental property management division into the Uitenhage and Despatch node.”

Property management service

Chas Everitt Property Rentals, she says, offers landlords a comprehensive letting and property management service provided by qualified and registered agents, including:

.The use of lease documentation that is compliant with all relevant legislation such as the Consumer Protection Act;

.The management of tenant deposits, which by law must be held in an interest-bearing account; and

.The management of ingoing and outgoing property inspections, which must be held in order for damages to be recovered from the tenant’s deposit if required.

“Even more importantly, we will be in a position to perform proper background checks in order to secure tenants with good credit, employment and leasing records and ensure low default levels for our landlords.”

Meanwhile, Vermaak says, the latest TPN Rental Monitor shows that rental demand in the Nelson Mandela Bay metro is very high, however the supply of rental stock is weak.

“Rising food, utility and transport costs as well as higher interest rates are also placing constraints on tenants’ ability to pay higher rentals, and landlords need to walk a fine line at the moment if they wish to keep quality tenants and avoid delinquencies.”

As a result, rental inflation in the area fell to 2,68% year-on-year in the fourth quarter of 2015, from 7,47% in the previous quarter.

Fortunately, she says, the average property rental for the Eastern Cape is R5 120 a month, which falls into the R3 000 - R7 000 a month category identified by TPN as a “sweet spot” that enjoys a very high percentage (88,2%) of tenants in good standing.

“In addition the overall percentage of tenants in good standing in the Eastern Cape is second only to the Western Cape, and well ahead of the national average, a fact which makes the region even more attractive to property investors.”

  • For more info contact Charlotte Vermaak on 084 512 5193


(Issued by Chas Everitt International)

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