Landlords 'need to be realistic' on World Cup rentals

Landlords should be realistic in terms of rental prices for their properties during the World Cup, Randburg Rentals said yesterday.

"Landlords need to be realistic about how much they can expect to earn from renting out their properties during the World Cup," said Tracy Pugin, a director of Randburg Rentals.

The company deals with Seeff Property's World Cup rentals in the Sandton and Randburg markets.

"Landlords need to take note of a request from the premier's office that we, as a nation, need to be mindful of not ripping off our visitors."

Pugin said that there had been ongoing criticism from the international media about the prices of accommodation and airfares.

"They suggest that the cost of airfares to a long-haul destination, coupled with inflated prices for accommodation, have put the World Cup outside the reach of the average soccer fan," Pugin said.

She added that she had offered tenants to landlords who had rejected them.

"I have tenants who are willing to pay R50 000 for 16 days and four landlords have rejected them for this very reason," Pugin said.

She pointed out that, in the normal market, a four-bedroom house in Sandton or Randburg would bring in rental income of between R8 000 and R12 000 a month.

"We are offering five to six times more over a shorter period and still finding owners saying a flat-out no," she said.

Some homeowners actually stood to lose more than they gained by refusing to be flexible about prices.

"Many unrealistic owners, who think if they hang on they will secure higher bookings right at the end, need to think again," Pugin said.

"For those who live in the home itself and are only planning to vacate for the period booked and stay with friends or relatives, this is fine."

However, Pugin said those who were sitting with rental properties were losing money by turning away long-term leases in favour of short-term, unrealistic rentals during a month-long sporting event.

"Leases for up to two years would give them long-term guaranteed income and immediate revenue," she said.

Pugin said not all landlords were being unreasonable and some were prepared to drop prices drastically in favour of longer-term bookings.

Business Report

Posted at 08:58AM Mar 09, 2010 by Editor in Residential  |