RENTAL OPPORTUNITIES ARE ON THE UP AND UP

AFTER 18 months of Covid-19 and an ongoing economic slump, residential rental properties provide an exciting opportunity in previously under-serviced areas.

PayProp chief executive Jan Davel says residential rental business opportunities are plentiful in the fast-growing formal, private rental sector in emerging market areas, such as Soweto in Gauteng and areas on the Cape Flats in the Western Cape.

“People will always need a place to stay, and, with growth in both residential rental demand and supply according to the latest PayProp Rental Index (Q2, 2021), landlords and tenants will need competent agencies in these areas with the necessary tools, knowledge and credentials to manage their investments and tenancies.”

Hurdles for many property entrepreneurs focused on rentals are the significant ongoing payment administration and strict industry regulations. Davel says that it’s important to identify the right tools that will automate all the critical payments required each month.

“Consider all the invoices, statements, reminders, receipts, reconciliations and payments at month-end. Even if you manage just 10 properties it can add up to a day or two each month.”

He says finding the right technology to automate much of the administration makes rentals a far more viable option for many property professionals.

Significant ongoing payment administration and strict industry regulations are hurdles for many rental property entrepreneurs. PICTURE: ROMAIN DANCRE/UNSPLASH