Granted, the property market, especially in Cape Town CBD, has been given a shot in the arm thanks to short and medium-term-type rentals and the success of student accommodation, Airbnb, Bookings.com and the likes, but believe me, managing and making a favourable ROI on a second or third property is not a walk in the park. Getting it right, though, can be one of the best investments you ever make.
The trouble is, many investors are left wondering if they’ve left it too late: is the sector saturated, is the season over? To be honest, those who got in early have certainly reaped rewards, but what we don’t hear about is that many a ‘school fee’ has been paid on route. The buy-to-let rental market is a whole new ball game, and investors should make sure their recipe for success is fool-proof.
Being in the property game, we’ve done our homework and researched this South African market extensively. In fact, our research got us so excited; we have actually set aside a number of our apartments at Eaton Square in Cape Town to service that market specifically. We’ve selected the most suitable units, carefully selected a suitable furniture pack and refined our offering, partnered with rental operators and developed an exceptional investment for those who are looking for a managed solution. Our property development team has brainstormed with some of the most experienced and best minds in conceptualising a turnkey solution for those hands-off investors who are looking to sit back and enjoy the fruits of this excellent investment option. However, for those who’d like to fly solo, I’d recommend you make sure of a few fundamentals:
Although location is important, it’s evident that the rental market is also looking for great access – walking distance to transport, coffee shops, restaurants. Seems like a no-brainer but many investors make the mistake of selecting an address above access.
Easy-peasy does it
Tenants are looking for slick, easy access with the least amount of rules, regulations, paperwork and a hassle-free process. Swift check-ins, no running around, 10 thousand phone-calls later meeting the friend of a friend who has got the key.
Make sure you’ve got great Wi-Fi, there’s enough connectivity for television and cable services and parking is available.
Yip, be prepared that your furniture is going to have a shelf-life and that pretty is not going to cut it. We’ve included a furniture pack in our units at Eaton for this reason precisely. Although you might be tempted to splash out and decorate, we’ve seen plenty of cash go out the window with bad furniture purchases
Visitors are always sceptical and cautious of the area they are staying in and whether it’s safe (and so they should be). A few security checks won’t do you any harm – find out if there’s a neighbourhood watch and what the crime rate is like. Also, make sure your tenants are aware of any security concerns.
The bottom line is, if you set yourself up properly and you don’t mind managing the process yourself (trust me, it’s time–invasive and time-consuming), there’s no reason not to go it alone. If, however, you’d prefer the ‘package deal’, find a reputable developer who has, like us, done their homework and ticked off all the boxes.