Harbour Bridge was developed by Faircape.
Many residential property owners with accommodation to let are looking forward to the Soccer World Cup, but for tenants looking for unfurnished accommodation in the Atlantic Seaboard over the next few months, it is fast becoming a thorn in their side.
There is a dire shortage of unfurnished accommodation in these and the surrounding suburbs, thanks largely to the arrival of this world famous event, says Faircape Atlantic Seaboard Residential Agent, Vicki Tee.
“Before 2010, the demand for unfurnished accommodation was often greater than furnished as most residents already have their own furniture which they transfer from one rental property to another.
“The World Cup has prompted many landlords to start furnishing their rental properties with the hope of making good profits during this short period. This may sound like a lucrative option but there are three major concerns here:
“The first is that short term rentals require a great deal of administration and supervision to ensure that a property’s condition is maintained once a tenant occupies and vacates. A significant amount of time needs to be spent ensuring that inventories are taken and that appropriate inspections and cleaning take place.
“The second concern is that by end of July 2010, there is a strong possibility that most long term tenants will have found accommodation to avoid being ‘stranded’ or left to find alternative accommodation during the winter.
“The third factor is that after the overseas visitors have left, the rental market is likely to be over supplied with furnished accommodation during winter - a time when the demand for rentals tends to slow down. This means that after July 2010 there is a likelihood that furnished properties could stand vacant for several months before suitable tenants can be found,” says Tee.
She says various landlords who may have previously accepted long term tenants are now turning to shorter term options. Some landlords are not renewing their current tenants’ leases beyond May 2010, with the hope of either selling their units or making a decent profit before and during the World Cup. These factors have resulted in the current lack of unfurnished accommodation.
Tee says: “Now is the time to sign up longer term tenants to ensure reasonable rental returns over a sustained period. There are various positive factors, the world cup feel good factor is around as we start the countdown to the event, the weather is warm and conducive to showing accommodation at its best, tenants are looking.”
For landlords seeking suitable tenants, it is advisable to do thorough background checks and follow up references provided by the applicants. A well established agency with sufficient experience in this field should be able to assist owners with this.
Faircape has been responsible for some well known Atlantic seaboard and the city bowl developments such as Wembley Square, Trinity Gardens, Cannon Gardens, Harbour Bridge, and South Seas. The company also has an independent leasing division, with experienced agents who can assist owners to find qualified tenants and find accommodation for tenants. Call 021 4041518 or email leasing@faircape.co.za.
