If you’ve never lived in one, you may wonder what rent in the township costs compared to other low-cost housing. Nqobi Malinga of property financing company, uMaStandi, says that well-looked-after properties in the township are becoming highly profitable investments.
Malinga says informal settlements should no longer be perceived as areas with limited resources and poverty. In fact, he says he sees the benefits that upgraded properties bring to the entire area. They’re not only a means to charge higher rent in the township, but they uplift the community by improving property values for all.
RENT IN THE TOWNSHIP
According to Daily Investor, high-quality township apartments can command between R3 500 and R4 500 per month. Or roughly R1 000 more than traditional affordable housing without the correct amenities (average R2 500). “In fact, within the low-income sector, tenants are prepared to pay an additional R1 000 to R2 000 for select properties,” Malinga says.
Meanwhile, the average monthly rent for a bachelor flat in South Africa varies significantly by location. However, prices typically range from approximately R7 433 to R10 950 across the country.
“To ask for top rent in the township, landlords must create a property that is not just four walls and a ceiling. It must be an attractive, liveable space that appeals not only to basic needs. Living in a higher quality home fills tenants with a sense of achievement and pride,” continues Malinga.
DOUBLE BONUS FOR LANDLORDS
Better still, doing so, means being able to ask for higher rent in the township. And benefitting from greater retention and less tenant churn. So, it’s like a double bonus. But how does one do this? First, he says, is the size of the property.
- Nothing smaller than 25 m² for a bachelor or one-bedroom unit.
- Natural lighting though large windows is preferable to the make the unit more attractive.
- Clever consideration for things like a kitchenette and entertainment area will guarantee more rent in the township.
- There must be enough space for a desk for working/studying.
- hHigh-quality properties are always clean and well-maintained to attract higher premiums.
- Reliable water and electricity services is a must.
- Along with Wi-Fi, and similar essential items for tenants.
- Finally, a well-lit yard and secure fencing ensures safety.
Do all of the above and landlords can ask for higher rent in the township.
Do you tent property in the township? If so, we’d love to hear from you in the comments section below to hear about rental prices …
