www.greeff.co.za on 2010-02-12"color:#ffffff" href="http://www.greeff.co.za" target="_blank"> www.greeff.co.za on 2010-02-12" />
Will astronomical world cup rentals be achieved?

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 an active rental division with many homes in the area likely to be popular with World Cup visitors.

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

“If you want to charge higher – and I know some are trying to get double or even treble this price, the home will have to be special, e.g. on the Atlantic coastline and/or should offer extra services such as breakfast and possibly snacks, a chauffeur, laundry, a butler and maids.”

Agents, said Leslie, 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. Furthermore, 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 are able to get a good lease right now, my feeling is, take it.”

A factor which should not be overlooked, said Leslie, 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.

Article by: www.greeff.co.za