Many people want to get into the property market but are not sure what kind of investment would appeal to them.There are many different aspects to property investing and renting out property.Besides the residential rental market there is also the holiday rental market.The holiday rental market can be very lucrative if you have a steady flow of customers year round because your daily rates amount to much more than monthly residential rates.
There are areas that will do better than others because of the attractions they offer to holiday makers. Among local South Africans that wish to take a driving holiday that has many stops with many attractions along the way there are alot of routes to consider buying a property on.
The Garden Route, the Cape winelands, the Klein Karoo and the Rainbow Route all offer unique attractions to visitors who will need accommodation.Then there are also individual destinations that are very popular with visitors such as Cape Town itself and the Kruger National Park.You could invest in a property close enough so that visitors could enjoy daytrips into the Kruger Park.
There are many options out there. If you think this type of investment will work for you do your research and weigh the pros and cons of every deal. Make sure you have a realistic idea of how much money you will be making in the good times and the bad times.
There are so many things to think of when purchasing a property for investment purposes and the work doesn’t end when you take transfer and the property is finally yours.After all the excitement of closing the deal you will probably now need to find a tenant.This can be tricky and you should take as much time as possible before signing anything and make sure you are comfortable with your choice.
The reason a good tenant is so important is obvious,if they don’t pay you will probably end up in a sticky financial situation.They can also just not care about the property and things they are responsible for can easily be ignored and your property may suffer.
When screening possible tenants be thorough,check their references,make sure there aren’t any holes in their information.Take the time to have a conversation with the applicant and really listen to what they are saying,are they happy in their job or relationship.These factors contribute greatly to where a tenant decides to stay and if they will stay if their situation changes.
You should also research the area you have bought the real estate in and the tenants that rent there.The average income of the area will give you a good idea of many things,like how much rent you can charge.
Once you do have a tenant try and avoid future problems by getting all communications in writing or by confirming any conversations via email.This really will save you alot of stress and confusion.Then you should definitely familiarize yourself with the legal side of being a landlord.From the basics,such as who is responsible for maintaining what, and the more serious aspects like tenant eviction.
Tenant eviction is not a simple process and most laws are in favour of the tenant.So take responsibility,do your research and be happy with your tenant from the begining.Nothing is foolproof but at least you will know you tried your best to get a good tenant.
When you are thinking about renting a house always make sure to go through a respectable letting agent. If you don’t you will quickly find yourself with unnecessary problems.
So what do good letting agents do?
- They do a credit check on you. This is to determine if you have a good credit record.
- They check your payslip. This is to make sure you can afford the rent every month.
- They ask for a month’s rent as a deposit.
- They have a valid contract. They will go through the contract with you and remember to check what the penalty clause is if you should decide to cancel the lease agreement before the expiry date.
- The rent should not go up by more than 10% per year.
- They walk through the property with you and do an inspection to check what needs fixing.
- They setup a debit order so you don’t have to worry about the rent every month, just make sure you have enough money in your account every month.
- They will make sure you have a contact number where you can reach them if you need them.
All this might sound intimidating but remember, if the letting agent does all these things it shows you that they are legit and you won’t have any problems if you need them and when you need to get your deposit back, o yes, when you get your deposit back they are supose to pay you the interest earned on the money as well.
It would seem that there is an interest in Cape Town property. People are starting to realize that if you own a rentable property in Cape Town you can get great returns when 2010 arrives.
There has been reports of an influx of business people and over seas visitors that want to rent property for the 2010 world cup. It goes without saying that Sea Point/Green Point, where the stadium is, is becoming more popular by the day.