YOUR OWN COMMUTER/STUDENT FLAT:
1. What is the best way to market such a property?
Our best agents are able to clearly articulate the value of a commuter/ student flat to prospective buyers. In this case, ease of access to transport routes, good internet access and security are likely to be key. There is a seasonality to the demand for student accommodation, so when the property is marketed should be carefully considered. Factor in the time it takes to transfer ownership and for refurbishments to be done before it goes to market. There is less seasonality with regard to the commuter market as contracts terminate and begin throughout the year.
2. Should I sell it in the current climate?
I’d like to quote Shaun Dubois, Just Property Pietermaritzburg franchisee – he puts it really well: “Have you heard the saying, ‘Don't wait to buy real estate, buy real estate and wait’? Property should rarely be sold and is a long-term investment. If it is held in a trust it can be very expensive to sell. Property is unique in that a tenant will pay most of your bond for you, and one day you will have a paid-up asset. Compare this to other asset classes where you would need to fund the purchase entirely from your own pocket. The fact that banks provide bonds for property unlike other assets further confirms the beauty of holding property.”
3. What about renting it out?
Many landlords will be wondering if it’s worth it in the current climate. It certainly is. Over time, carefully chosen and managed investment properties provide long-term income and value. Get the best legal advice you can afford, and appoint a letting agent to vet prospective guests/ tenants and manage your investment property for you. Here’s what you should demand from your rental agent:
- Correct pricing to attract quality tenants and avoid extended vacancy periods
- Stand out marketing to drive immediate occupancy
- Strict vetting of tenants to mitigate risk
- Diligent property management to protect your asset & income & YOU
- Cloud-based systems to drive efficiencies & transparency
- Firm but fair dispute handling to move forward amicably
1. If possible, should I try to acquire business rights in order to get a higher price when I sell?
Properties in prime commercial areas can attract a higher selling price if they are zoned for business rights. The rezoning process can be protracted, so owners are cautioned against expecting a quick win. Speak to a well-respected commercial property broker to understand the opportunities and possible roadblocks.
2. What are the challenges landlords have faced this year?
Just Property’s experience has been the same as that of the rest of the market: higher than normal vacancies, with commercial tenants battling to meet their rent obligations. Residential tenant payments have slipped too but Just Property has been able to consistently outperform the other property management agencies, securing fewer vacancies and fewer defaulting tenants. Some of our landlords may find our vetting criteria strict but they have been rewarded too.
Our client feedback and reviews show that clients need their managing agents to be honest with them, now more than ever. Emotions are fraught, people are on edge emotionally and financially, and they want accountability. These are not unreasonable demands. Underpinning great customer relationships is the element of trust. For us, trust manifests itself in peace of mind - that sense of relaxing, knowing that you are in good hands. If our clients can say that we give them peace of mind in an otherwise chaotic world, we will know that we have delivered on our value proposition.
Courtesy of PrivateProperty