An Airbnb investment property, or two, seems like one of the easiest ways to become a real estate mogul these days. Spearheaded by Cape Town’s golden white beaches, cosmopolitan lifestyle, majestic mountains, and million-dollar ocean views, the short-term Airbnb rental market is raining money in Cape Town.
With 2020 predicted to be the year for Airbnb and with the Cape Town property market dangling tangible investments that can either create wealth or create a passive income—now is the time to snap up a prime piece of property and start generating some serious revenue.
But having an Airbnb investment property means joining the union of tourism and real estate—two huge industries you probably don’t know much about. To ensure an Airbnb property that can yield high short-term rental returns, there are a few things to consider.
1. The Real Estate mantra: “Location, Location, Location!”
Would business travellers or tourists find your property convenient? There’s a strong demand for short–term rentals, but only in the right area. Topping the list as the most sought-after properties with the highest occupancy rates—Waterfront V&A Marina, Camps Bay, Clifton Sea Point, CBD, Blouberg, Noordhoek are desirable areas to work, play, tour, and invest. Simply put, guests like to be close to sights, attractions or any event venues, and if your property is not in a desirable area, guests will not choose you.
2. Are you selling an experience or just another room with a view?
What is it about the property that will grab the attention of Airbnb guests? Short – term renters have different expectations from their accommodation, and if you’re considering making such an investment, you’ll be an investor and a host. You will be a property and service provider. That said, with hundreds of Airbnb properties listed in the Western Cape, you need to differentiate your property. You need a unique selling point.
3. Know your local Body Corporate laws
Due diligence of by-laws, costs, profit potential, and how you intend to operate your short-term rental property is a fundamental part of the pre-purchase process. While new by-laws approved by the City of Cape Town makes it easier for homeowners to rent out their house or apartment for a period not exceeding 30 consecutive days for the same guest—body corporate laws vary. Make sure to do your homework.
4. Consider a Property Management Agency
Running your short-term Airbnb rental on your own does not necessarily mean you will save money, especially if you work full-time, your property is in a different city, or you lack the support to handle the day-to-day admin.
Managing an Airbnb property can quickly turn into a full-time job. From price optimisation, listings, photography, guest screening, key exchange, monitoring, support, and house cleaning to maintenance management—a property management agency will ensure a seamless customer experience while making your property investment journey hassle-free.
Start looking for an Airbnb Investment Property NOW!
Long-term rental investments are still popular and profitable, but short-term rentals offer better margins and less risk. However, real estate investing requires due diligence to ensure that you get the best ROI.
So, what are you waiting for? Give our real estate experts a call to learn more or to get started now.
Tyson Properties Atlantic Seaboard – 021 434 0615
Tyson Properties Western Seaboard – 021 556 2335
Tyson Properties Southern Suburbs – 021 761 6539
