The demand for rental homes in Pretoria's Erasmuskloof area has grown exponentially, and such properties now dominate the local market.
This two bedroom, two bathroom property in the Sterrewag security complex was recently let. The property offers a private garden, fireplace in the living area, top-grade finishes and a double automated garage, and is being let for around R11 000 a month through RealNet.This is according to RealNet's local franchisee, Goran Despot, who says his franchise is currently receiving more than 15 enquiries a day for rental accommodation.
He says demand is high for entry-level stack or simplex units with two bedrooms and a bathroom at monthly rentals of about R6 000. It seems that many of their prospective tenants are still not able to qualify for home loans for various reasons, and thus have little option but to rent if they cannot live with family, he says.
On the other hand, Despot says this rental category is also popular among young people just starting their careers and who are not yet ready to take on the responsibility of homeownership.
Sectional title units with three bedrooms are currently achieving rentals from about R8 500 per month, while a few luxury units achieve rentals of up to R12 000, even if they only offer two bedrooms and two bathrooms. Despot says that such units are usually spacious, between 140sqm and 160sqm, and are situated in top complexes in exclusive areas.
Tenants in the latter category are usually professional and business people who, for whatever reasons, prefer to rent rather than to commit to ownership, he says.
Meanwhile, investors have been quick to spot opportunities in the market and demand is brisk for smaller units that will yield a rental return of around 9%.
"We receive regular enquiries for units in the R600 000 to R1 million price range, although most investors buy units priced between R600 000 and R850 000.”
In this regard, he says investors are following the growing trend of consumers preferring smaller properties, which makes units in this category easier to let and more likely to deliver a higher return on investment.
RealNet Erasmuskloof, with a substantial rental portfolio of nearly 100 properties, plans to double the number of its rental agents as well as the number of rental properties on its books, says Despot.
They expect the rental trend to maintain momentum and are in the process of recruiting candidates for specialised training in order to maintain their signature service to tenants and landlords, he says.
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