Rentals of R10 500 and R 12 000 a month are paid for the two and three bedroom units in Tafelzicht Terraces in Vredehoek.

Prices of rental property in the Cape Town City Bowl are softening due to lack of demand.

“Tenants are shopping around and are very aware of available stock, so they compare and look for the best deal. Also, they will reduce their requirements or just move out of an area if rentals get too high for them,” says Elzunia Singer, rental consultant at Seeff’’s City Bowl office in Tamboerskloof.

She is also expecting more furnished properties to come onto the market as they are no longer being let for the World Cup. This will lead to a surplus of rental properties, so it is more important than ever that rentals are set at the appropriate level.

“Owners tend to lag behind the market in their pricing. They would do well to remember that the year-end peak demand has long passed and winter is here - and prices naturally decline and stabilise at this time.

“Owners should take their rental agent’s advice and not decide on a rental with no logical basis. Otherwise the only option would be for the property to sit empty until demand picks up, which is untenable. It is advisable to keep a good tenant at a slightly reduced rental rather than incur all the running costs associated with an empty property.”

Singer says a current snapshot of City Bowl rental properties indicates that there is a large number of furnished properties available, but the real demand is for unfurnished homes.

“It is imperative that investment property owners get to know their market and cater to the demand in their particular area. Properties that cater for larger market segments mean increased chance of a rental, shorter or no void periods, and continuous rental cash flow throughout the year.”