Seeff’s branches in Edenvale and Bedfordview in Johannesburg's East Rand have seen an increase in high-end rentals priced between R20 000 to R30 000 per month.
Elaine Becker, Seeff’s Branch Manager in Edenvale, says even though this is a high monthly rental, at the moment many people would rather pay this amount than buy the equivalent property with all its resultant transaction costs.
“People who rent in this price range also include those who have sold their property and are planning on emigrating, but are waiting for the process to be finalised,” says Becker.
“Unfortunately, we have also seen a rapid decrease in tenants with a good credit rating, which means that we have to qualify a lot more clientele before viewing properties and placing a suitable tenant.”
Becker continues that the majority of rental stock (mostly sectional title) in Edenvale and Bedfordview is priced between R7 000 and R12 000 per month, and that property in this range is also the most popular in both these areas.
This price range can offer anything from a studio apartment to a three bedroom apartment in the different complexes. The complexes are all access controlled with ample parking space. Due to the high density of these units, only covered parking spaces are available and no garages.
Greenstone Hill is definitely the rental hotspot in Edenvale - there is always stock available and property moves very quickly.
Units in Greenstone Hill are well priced between R7 000 and R12 000 monthly, and there are many different varieties of the same product. In terms of area and affordability this suburb offers a win-win situation to tenants, says Becker.
Becker says areas like Dunvegan, Bedfordview and Modderfontein offer luxury rental property priced between R28 000 and R35 000 per month.
“These properties are mostly situated in estates or access-controlled areas offering good security, and include anything from two to five bedroom modern houses, townhouses or clusters with a big garden and often a pool. Tenants who rent here are usually corporate tenants or business owners,” says Becker.
She adds that Edenvale and Bedfordview are not experiencing an overstock in their areas at the moment.
“When this has occurred in the past we would concentrate on price counselling with our landlords to rectify the situation,” says Becker.
“We have also found that it can take anything from one to four months for new stock to make its way into the market place - leaving enough time for price correction before it becomes available. We are, however, experiencing a stock shortage in cluster homes, townhouses and in some cases freestanding rental homes priced between R16 000 and R25 0000 per month in areas like Dunvegan, Dowerglen, Bedfordview and Modderfontein,” she says.
“These homes are quite popular with business owners who have large families and who do not want to buy property at this point in time, as well as young families who are not ready to buy their first home.”
Becker says the majority of their tenants in Edenvale and Bedfordview are young professionals with secure positions who have recently entered the work space.
Across the board most tenants are looking for security, amenities and facilities such as a clubhouse, pool and gym in the complex, good schools and shops in the area, as well as Wi-Fi and pet-friendly developments, she says.
“We have many new up-and-coming developments and our rental model is continuously growing - our rental book has grown by 42% in the past two years,” says Becker.
