The rental market on the mid-South Coast of KZN
Category News
Jo Giraudeau, Seeff Mid-South Coast and Seeff Amanzimtoti and Hibiscus Coast Rental Manager gives her expert take on how the rental market on the mid-South Coast area of KZN, covering from Isipingo all the way through to Port Edward, is faring.
“If I compare our figures for the first half of 2018 to those for the first half of 2017 and 2016, then for the worst month, 2016 and 2017 are almost on par, with 2018 showing a slight decrease. However, when we look at the best month, again 2016 and 2017 are about equal – but our best month this year is around 25% higher! When we examine the numbers, then total income for the first half of 2017 increased by 1.7% over 2016, while for 2018 it decreased by 1.85% compared to 2017, so these are very slight variations.”
Giraudeau describes other changes she has noted in the rental market. “The first change we are noticing is that in some months we have more stock than we have enquiries – whereas before we could not keep up with the amount of enquiries. Also, the type of accommodation being sought seems to have changed to more freestanding houses than sectional title, as families are taking on other members to contribute to rental costs.
“The second change we are finding is that whereas in the past owners could afford the initial procurement and monthly management fees, now due to economy many landlords are now opting for unmanaged leases, where there is a once-off fee and no monthly management costs. Also, in the Mid-South Coast area our average demand for rentals is in the R3500 per month to R8500 per month bracket, whereas last year the demand was in the R5500 to R10 500 per month band.”
With rental rates in the area under some pressure, she has some pointers on how agents will have to adapt to the new market conditions: “Rental agents are going to need to be flexible with the commissions charged, and to adjust them according to market affordability. They must also ensure that they provide owners with market-related assessments, and do not over-price the rentals, which would give false hope to owners as to what their profit could be.”
Contact Jo Giraudeau, Operations Manager and Rental Manager in Residential & Commercial, Seeff Mid-South Coast, (C) 039 978 2861, (O) 039 978 2861, Email joleen.giraudeau@seeff.com
Author: Seeff
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