Property Investment: Buy-to-let
Category Landlords Guide
With the year nearing to a close, many of us are taking stock of our property portfolios. Often, as an Estate Agency, we get asked the question "Is investing in a property for the purpose of renting it out still worth it?"
The short answer is yes, it is, and here are some reasons why...
Renting Out Your Investment Property
The current rental market, especially in Cape Town, is holding its own, with low vacancies and excellent tenancy placements. In the Northern Suburbs and Winelands specifically, Louw & Coetzee currently has 0% vacancies! Even though stock is low, the tenant applicants are strong. Why is this, you may ask? In our case, it is either, or all, of the following reasons:
- The rental property is being well-maintained;
- The property is priced correctly; and
- The tenant is properly vetted.
For these reasons, the property will be leased very quickly, and most likely to a quality tenant.
Why Are People Renting Instead of Buying?
As the current demand trumps rental supply, we now see affordability as the main driving force to rent. Many income groups are remaining static, or are receiving low salary increases, and there are higher interest rates, which means tenants are shopping for value-for-money.
Protecting Your Investment Property
On another note, we often hear about evictions and bad lease experiences, so how do we protect our investment property? It starts with proper vetting of tenants. At Louw & Coetzee Properties, Associate Director and Head of Rentals, Angie Passman, refers to an internationally renowned AI (Artificial Intelligence) program that is used in the vetting of all Louw & Coetzee Properties' tenant applicants. Passman states that this program looks at the tenant's risk profile holistically, including a tenant's willingness to pay, communication with the agent, and the presumption on how the tenant will take care of the leased property. Passman further confirms that since the Agency has used this program for the last five years, they have not had one tenancy eviction in their 930+ properties under management.
The long and short of it is, if you have invested in a property-to-let, it is priced correctly, and your tenant is vetted properly, you are much more likely to have a seamless rental experience.
For more information, visit contact Angie Passman on 021 976 2730 | angiep@louwcoetzee.co.za.
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Written by: Hayley Kellerman
Author: Louw & Coetzee Properties
