Buy-to-let residential property investors are reportedly making a killing thanks to demand for rental properties in Century City and Atlantic Seaboard.

Island Club in Century City is a very sought-after location for rentals.

While some tenants can afford rentals of between R5 000 and R12 000 per month for apartments in Century City, others pay as much as R15 000 per day for luxury villas in the Atlantic Seaboard.

Estate agents say Century City has seen buy-to-let investors re-enter the market in significant numbers this year after a two to three year absence from the market.

Property World’s general manager, Brian Usher says rental units in Century City are being snapped as they come to the market and they find it hard to keep up with the growing demand.

Another estate agent, Jackee Robertson from Property Café says they have a waiting list of would-be tenants and seldom experience any vacancies.

They say demand is mostly coming from young professionals with about 60 percent working in Century City.

Investors can be rest assured of getting good returns from their properties as the area offers achievable rentals. These depend on the development and whether apartments are furnished or not.

A one bedroom unfurnished apartment is priced between R5 000 and R6 000 per month, a two bedroom unfurnished between R6 500 and R8 500 and three bedroom units from R9 000 to R12 000 and more for penthouses.

“This has been particularly evident in our latest development, Little Moorings, where 32 of the 42 units have now been sold with more than 60 percent of these to buy-to-let investors.”

It is not only properties in Century City that are seemingly in demand.

Luxury villas on the Atlantic Seaboard are said to be in demand especially in the R10 000 and R15 000 per day price range.

At the height of the property boom, these villas were commanding rentals of up to R30 000 on average per day, leaving investors with lots to smile about.

According to Seeff Atlantic Seaboard rental agent, Tanya Joubert, rentals are generally for periods of up to 3 months but quite often extend to six months.

A seven-bedroom luxury villa with en suite bathrooms in Bantry Bay can fetch up to R40 000 per night on a short term rental says Seeff.

She says the busy season is between December and April and luxury villas in Bantry Bay can fetch up to R40 000 per day.

“Current rates, however, are still good for buy-to-let property investors,” says Joubert.

She explains that the greatest demand right now is for Sea Point apartments ranging between R3 000 and R8 000 per day and villas in Fresnaye and Bantry Bay at rates of between R10 000 and R12 000.

Camps Bay and Clifton villas still command the highest rates at between R10 000 and R15 000 per day.

More than 50 percent of all luxury villa rentals on the Atlantic Seaboard are rented out for leisure purposes and about 40 percent rented out to foreigners. Corporate rentals account for about 30 percent and the film industry for 20 percent, she says.

Joubert counts among her clients famous names such as Leonardo DiCaprio, Jennifer Connelly, Djimon Hounsou, Joseph Fiennes and Caprice who also bought a property from her.

Locally, her most recent top rental was a five bedroom Bantry Bay villa for a three week period at R47 000 per day for a local high profile client with interest in online casinos.

Joubert also visits the European summer hotspots where she actively markets the Cape Town luxury rental market.

“There is a shortage of rental stock in the R3 000 to R12 000 per day price range,” she says.

She adds that although these daily rates may seem expensive, luxury villas and apartment rentals remain an appealing option for those with money. – Denise Mhlanga

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