The festive season is fast approaching and economic activity and consumer spending typically spikes during this time. Many take leave during December, especially due to the relative warm holiday weather across the country.
Besides local travelers flocking to their favourite destinations, South Africa is a premier holiday spot for international holidaymakers too. Due to the high demand popular lodges, hotels, guesthouses etc. are usually fully booked months in advance. This is where renting out your property over this period to tourists can be a great source of secondary investment income as well as a way to ensure your home does not stand empty while you're away.
If you're thinking of letting out your home during this season here are few things to consider:
Firstly, it is imperative you get in touch with a rental specialist agent in your area that understands the market well. Not only will this agent be able to provide you with an accurate valuation of potential rental income but also be able to manage your tenant requirements. This process can often be a dissuading factor for home owners not wanting to deal with the hassle of vetting potential tenants as well as getting all the legalities in order. A rental agent will have all the necessary experience and training to assist greatly when exploring this option.
Secondly, the sooner the better. People tend to make holiday arrangements long in advance, and it is always better to step into the market whilst your potential tenants are deciding on accommodation. You don't want to go through all the processes of letting out your home only to find it was too late and with your potential target market being dramatically reduced.
Lastly, letting strangers into your house remains a risk. Take all the necessary safety precautions to ensure your investment is protected. If you have a safe on the property make sure accessibility is strictly reduced, also if you have any items of a high value rather lock them away in the safe or acquire a safety box off site for the duration of the tenancy.
There are a lot more aspects to consider, that is why step one is so important. Partner with professionals and you'll be surprised at the ROI potential.
Harcourts Africa Chief Executive Officer