Property owners thinking of letting out their homes over the World Cup period should be sceptical about the rents that some agents are claiming they will be able to achieve – especially if, tempted by the these huge gains, they are holding back on signing satisfactory long term leases right now.

This is the advice of Graham Leslie, MD of Greeff Properties, which runs a rental division with many homes in the area likely to be popular with World Cup visitors.

“My prediction is that a rent of €150 a room per night is about the acceptable price. This means a comfortable three bedroom home in a reasonably good area would cost the visitors €450 a night – roughly R4 500.

“If you want to charge more – and I know some are trying to get double or even treble this fee – the home will have to be special, for instance a luxury home in an expensive suburb with spectacular views and should offer extra services such as breakfast and possibly snacks, a chauffeur, laundry, a butler and cleaning services.”

Leslie says agents are quoting high rentals to secure mandates, but often cannot produce any guarantee that they will be able to find tenants.

“It worries me that quite sensible people will hold back on good long term lease opportunities currently available and will only get short bookings at less-than-spectacular rates. Also, when they look for long leases again in August they are almost certain to find that there is a glut of rental property on the market – and that tenants are reluctant to sign in mid-year. A rental glut will also reduce demand and rental prices will suffer.

“If you can get a good long term tenant right now, my feeling is, sign the lease. A factor which should not be overlooked is that these homes will be occupied in winter which, at the Cape, can be pretty miserable for days on end, so the benefits as photographed in summer might not be that attractive in winter,” says Leslie.