Property to Rent
Read this before you rent out your luxury property
Many luxury property owners choose to rent out their properties in order to earn an additional income out of their investment. On the surface, this might seem like a great idea and an easy way to secure an income stream. However, if not properly managed, it could easily become more hassle than it is worth. That said, a logical and informed approach will make sure that you can avoid potential pitfalls and secure the perfect tenants.
Looking for the secret to success? Start with these eight tips if you want to rent out your luxury property:
1. Make sure your property is priced right for the market
It can be very tempting to ask a premium rate for your space. Many owners tend to overestimate the value of their properties or try to squeeze as much income out of them as possible. Make sure your monthly asking price matches the market. Look at other similar properties to rent in your area to gauge the price range, and be sure to emphasise the reasons why yours is priced higher, if this is the case.
2. Consider doing some renovations
Rental properties should be treated as long-term investments. To attract interest and maximise the returns you can get, it is essential to make a great first impression. People who pay premium rates for renting luxury properties expect to get value for their money. A coat of paint or a new kitchen can go a long way to make your space more attractive to tenants.
3. Show off the best features of your property
With prospective tenants spoilt for choice regarding their options of properties, it is often not only the location of the home or the layout of the space that seals the deal, but the feeling the place gives them. Instead of trying to appeal to a generic base, highlight the features that make your place unique and memorable.
4. Make sure the security features are sufficient
Security is a vital feature of any home in South Africa. This is especially true of properties at the luxury end of the market. Those who pay a premium fee to rent a property also want the peace of mind that their family and belongings are safe while living there. Consider upgrading your security features to add value to your home.
5. Furnished vs. unfurnished – read your market
Do you rent out your property fully furnished, or as a blank canvas for the tenant to furnish? This completely depends on the rental market you are targeting. Furnished properties are typically the better option for short-term rentals, vacation rentals, and inner-city businessperson pads. Long-term family oriented properties tend to do better when unfurnished.
6. Be connected
In a short span of time, the modern work environment has changed completely. More and more people work remotely at least some of the time, necessitating the availability of fast and reliable Internet connections. If possible, make sure your space has a fibre connection, or access to a similarly good Internet connection.
7. Assess tenants carefully
Credit, income, and tenant record checks are always important. Always make sure your interests are looked after by vetting tenants carefully and making sure a solid contract is in place.
8. Make use of an experienced agent
To avoid the potential pitfalls associated with terrible tenants, and to access the right market for your property, make use of a professional and experienced agent, such as Fine & Country South Africa. We are the trusted agent for those wanting to buy, sell, or rent property in the South African market.