Cape Town’s high-season short-term rentals up to R35,000 per day
Property owners and investors on the Atlantic Seaboard, City Bowl and V&A Waterfront areas can expect rental income of between R5,000 to R35,000 per day over the coming holiday season.
This is according to Ruth Munitz, manager of SeeffSHORTSTAY, who says two- to three-bedroom homes with a view in Camps Bay can earn investors between R6,000 to R8,000 per day, while luxury villas with a swimming pool and fabulous views can range up to R20,000 to R25,000 per day.
According to Cape Town Tourism, the short-term rental market in the city shows that visitors tend to stay anything from a week to six months, while about 30% stay longer.
This means that short-term rental investors who own Clifton bungalows and apartments can look forward to averaging about R23,000 to R35,000 per day over the high-season period of November to March. Investors can therefore earn anything from R3,45m to R5,25m for the five-month period. Even out of season, when rentals drop by between 30% and 40%, investors can look forward to earning between R3,000 to R21,000 per day.
Munitz says City Bowl apartments with two to three bedrooms, preferably with a view, can attract on average around R5,000 to R7,000 per day in season while a house with all the latest mod cons, a swimming pool and fabulous city views can achieve as much as R10,000 to R20,000 per day.
These numbers are nothing to sniff at; earning a good rental income depends on a number of factors, starting with a good location, preferably close to the beaches. Views are a big attraction and the better the location, views and finishes, the higher the daily rate that you can achieve, says Munitz.
The guest experience is vital as visitors can and will share their experiences on travel websites and their own social media channels – either for your benefit or your reputational damage.
“This is a critical factor for the short-term rentals market,” says Munitz. “Good reviews drive bookings and will also increase the marketability and potential returns of your property.
“Good basic amenities such as satellite television, Wi-Fi and security are generally now a must for the short-term market. Don’t forget also that your guest will need to know how to operate various aspects of the property that you may not even think of. This includes, for example, how to reset Netflix, operate the Jacuzzi, what to do when the washing machine does not work and so on. Here too, the rental agency can provide this service along with a concierge service similar to that on offer in guest houses and hotels, all adding to the guest experience and marketability of the property.”
With potentially millions of rand at stake, investors would be well advised to bring in a professional service to market, maintain, secure and attend to any and all tenant needs as and when they arise. Anything less would be a lost opportunity, at best.
For more, contact SeeffSHORTSTAY’s Ruth Munitz on 076 222 2122, 021 434 9175, email email@example.com or visit www.seeff.com. SMS the word “STAY” to 44249 to join Seeff’s exclusive property portfolio
Top photo: Clifton bungalows, located metres from the beach, rank among the most sought after in the Cape. This large private north-facing bungalow offers direct beach access and your own private pool and deck as well as stunning sea and mountain views. Rates range upwards of R25,000 per day.
Ed question: What is the maximum you would pay per day to stay in these sought-after areas?