What could the future rental demand be like for your property?
Category Property news
What could the future rental demand be like for your property?
As a participant in the property market, there is always the dilemma of choosing between renting or selling in any given market, but this has become more apparent in the current climate that we find ourselves in. Renting out your property can be one of the best ways to generate a steady monthly income and secure your financial future. However, the success of a profitable rental property depends on several factors that need to be taken into account. If these factors aren't considered it could, unfortunately, be a pitfall for your money and the property as a whole.
Location with strong rental demand is high on the list of priorities. Rental demand is the competitiveness for rental properties in a particular area. In other words, it's the number of people that are looking for a property to rent in the area relative to the number of properties that are available.
As we've seen, there has been a lot of development happening in Sunridge, West Riding, and the surrounding area, with inevitably more to come. With more apartment blocks and complexes popping up in the area, there is a natural increase in the supply of properties to rent. An ever-growing supply in rental properties provides potential tenants with a variety of options to choose from, therefore, lowering the demand for one specific property.
Your Westriding or Sunridge property could perhaps be on the verge of becoming saturated with rental stock. Once this happens there will be increased competition for landlords to find tenants, the vacancy rate of rental properties will increase and landlords will be forced to lower their rents to attract tenants. We have seen this phenomenon unfold in areas that have experienced a construction boom in recent years such as the Atlantic Seaboard which has contributed to vacancy rates of up to 30% in suburbs such as Sea Point.
Moreover, with a decreased number of prospective tenants to screen and a dash of desperation, it becomes more difficult to find quality tenants who will co-operate with ease and take care of your property.
Many informed investors with rental properties have foreseen these events unfolding and opted to sell and rather invest their money in higher-yielding asset classes.
Should you be interested in learning more about the current and anticipated future property market conditions, we would strongly recommend contacting one of our highly trained brokers to explore this topic further and discuss your potential options.
Click here and our specialist brokers will be in touch.
Recently Listed and Sold by Greeff Christie's International Real Estate 🔴
Listed - Sire Road, West Riding
for ZAR 2 095 000
Sold - Byron Road, Sunridge
for ZAR 1 730 000
Author: Greeff Christies International Real Estate
