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Price properties correctly to mitigate rental lag

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Cape Town - A balance needs to be struck between high returns from rental property and a reliable tenant who pays the rent on time and looks after the property, according to Dexter Leite, Pam Golding Properties' (PGP) rental manager for the Cape region.

In his view, the challenge is to set a market-related rental, in relation to the property’s value, that is still accessible to potential tenants. If priced too high, the risk is that the property will stand vacant.

A rental increase of about 7% to 10% is fairly standard, dependent on the length of the current lease and the property’s value trend.

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