2010 World Cup Rental Opportunities
As is well known, the 2010 World Cup is an event that will present South Africans with many new and exciting opportunities. One of the main prospects is accommodation, as it is estimated that even with all of the hotels in Johannesburg being fully occupied, there will still be a shortage of 38 000 beds over the World Cup period (10th of June to the 10th July 2010). Landsdowne Investment Properties would like to offer you a chance to take advantage of this shortfall. If you own a fully furnished, sectional title apartment, townhouse, cluster or house, you are eligible to rent out your property and reap significant rewards.
To understand the rates, one needs to understand that there are basically two types of clients who we will be servicing during the 2010 World Cup. These include a) the service providers; and b) the supporters. Service providers are those people who will be staying in South Africa for World Cup work purposes (eg: journalists), and the supporters are those fans who have travelled from afar to watch their teams. Due to differing needs, the service providers are likely to require slightly longer term rentals (April-July), whereas supporters will be more likely to need accommodation only during the actual World Cup period (10th June- 10th July).
Due to the fact that there is a shortage of beds and that foreign rates will apply, one can expect to earn approximately double the normal fully furnished rate during the months prior to and after the World Cup. During the actual World Cup period, however, one can expect to earn as much as R1500/person, per night. This means that a one bedroom apartment can earn up to R3000/day and a 4 bedroom house can earn as much as R12 000/day. These rates considered, an owner could thus earn a R90 000 return for a 1 bedroom apartment, or a R320 000 return for a 4 bedroom house over 30 the days that the accommodation will be required. Rates like these would be impossible under most circumstances. Of course these prices are subject to change, they just serve as an indication of the rates that have already been achieved by Landsdowne.Investment Properties.
As you most probably know, the World Cup draw is being held this evening (4 December 2009) and will place countries? teams into different groups. Immediately after this date it has been forecasted that the demand for and interest in accommodation will increase significantly, as supporters will know where their teams will be playing. Of course supporters/service providers will want to follow their teams from start to finish, so having a schedule will allow them to confidently book accommodation in advance.
What is Landsdowne Investment Properties offering? Landsdowne Investment Properties is offering is a bridge between the owner and the tenant. In exchange for 20% commission (plus VAT) of the total rental received Landsdowne will provide all of the following services, all inclusive:
o Marketing the property and listing on www.landsdowne.co.za and partner websites o Completion of Lease Agreements with potential clients o Handling of the deposit o Payment of rental to clients o Holding of a breakage deposit in Landsdowne?s trust account o Inventory management, including an inspection list o Tenant check-in and check-out service o Tenant-on-call assistance with any problems experienced with the property
In short, this means that the full rental amount will be attributed to the owner, he/she will not have to deal with any administration and Landsdowne will ensure that the estate is returned to its original state once the tenant has moved out.
Payment Structure Landsdowne Investment Properties requires 25% of the rental to be paid on confirmation of the booking, if the booking is made before the end of January 2010. The remaining 25% must then be paid over the months leading up to the World Cup, with last 50% being paid within 24hrs of tenant check-in. For those tenants who book after the end of January 2010, 50% must be paid upon confirmation of the booking, and the remaining 50% must be paid within 24hrs of tenant check-in. This payment structure has been designed so as to minimise risk to the owner as well as allow the tenant a more convenient payment option.
Cancellation Tenant cancellation If the tenant cancels prior to the date of occupation there will be no refund to him/her. Landsdowne will, however, do it?s utmost to find new tenants to occupy the property over the scheduled period. If this is successful, 75% of the deposit will be paid back to the initial tenant. This policy serves to provide some incentive for the tenant to find a replacement tenant if he/she chooses to opt out of the lease agreement.
Owner cancellation If the owner decides to cancel the lease agreement once it has been signed and the first deposit paid, the full amount of the commission will still be payable to Landsdowne Investment Properties. Of course the deposit will also need to be repaid to the tenant.
Conclusion The 2010 World Cup has the ability to provide South African property owners with a once in a lifetime opportunity. By choosing to rent out your property through Landsdowne Investment Properties you will be able to reap significant financial reward, avoid all administrative effort as well as limit any associated risk.