According to the most recent TPN Rental Payment Monitor, 86% of South African tenants were in good standing in 2014, making last year a positive story for both tenants and landlords alike.
Situated in Clifton, this apartment offers one bedroom, one bathroom, a granite topped kitchen, an open plan dining room and lounge, and one off-street parking bay. It is on the market for R19 500 per month – click here to view.This is according to Shaun Groves, newly appointed National Rental Manager at Jawitz Properties, who says the Western Cape continues to be the province with the most tenants in good standing, coming in at 89%.
The most volatility is found at the lower and top ends of the rental market, where landlords need to be cautious when taking on new tenants.
Groves says it is advisable that landlords use an established rental agency with high levels of quality control. He says reputable agencies use every mechanism at their disposal, including multiple credit bureaus and acquiring bank codes through the applicant’s own banking institution to gauge affordability.
While the average rent in the Western Cape is just under R6 000 per month, according to TPN, a wide range of rentals is available for every pocket, though stock moves fast if it is priced correctly as demand is so high.
This Woodstock apartment has one bedroom, one bathroom, an open plan living room and fitted kitchen, secure off-street parking and beautiful views of the harbour. It is priced at R9 000 per month – click here to view.Entry-level on the Atlantic Seaboard is around R6 500 to R7 000 per month to rent a bachelor apartment.
Groves says there is nothing on offer under that price at this stage, and rentals can go as high as R100 000 per month for large, luxurious properties. The average in the area, however, is between R10 000 and R20 000 for a one or two bedroom apartment, he says.
There are many micro markets on the Atlantic Seaboard, where prices differ from one apartment block to another on the opposite side of the same street.
Rentals in the City Bowl are on a par with the Atlantic Seaboard. Long-term, unfurnished bachelor apartments are priced between R6 500 and R7 500 per month, while one bedroom units attract between R8 500 and R9 500, and two bedroom flats are priced at R10 000 or R11 000.
Three bedroom units are hard to come by and are priced at R14 000 to R15 000 per month.
This Sea Point apartment offers two bedrooms, one bathroom, a reception area, balcony and garage. It is on the market for R20 000 – click here to view.A new development, Queensbury, in Higgovale, has a two bedroom apartment for R18 000 per month, while in Woodstock another development has a two bedroom going for R11 000 per month.
It really depends on the location and features, he says.
Groves says they find some parents are looking for accommodation for their student children, but the majority of tenants are young, professional couples and singles.
The Southern Suburbs is quite different, where Constantia and Bishopscourt generally offer rental options for R30 000 per month, while in other areas a bachelor apartment can range between R2 800 and R3 300 per month, a one bedroom unit around R4 000, two bedrooms from R5 800 to R6 500 and three bedrooms going upwards from R7 500. He says rental prices change from area to area.
A townhouse could go for R15 000 to R20 000 in areas like Meadowridge or Tokai, while a smaller property, such as a two bedroom semi-detached, could go for much more in other areas.
One such example is a recent listing in Newlands for R22 000 per month, while a property of the same size with similar features could go for as little as R8 000 per month in Wynberg, as the area attracts lower rentals.
Generally, smaller families and professionals are looking to rent in the Southern Suburbs.
Location remains key and tenants look at the position of the property, the state of traffic and proximity to schools or other amenities as important factors when deciding on where to rent.
Groves says while there is buoyancy in the market, landlords must keep in mind that there is nothing more costly than a non-performing tenant, and therefore discretion is the better part of valour, and landlords should make use of a reputable agency.
