FIFA World Cup: Renting out your property

Published : 04/03/2010 | Author: Annelien Nolte | HOMEMAKERSonline

2010 is a big year for the South African economy and an ideal opportunity for everyone to generate an extra income. And if you are near one of the main soccer stadiums (Rustenburg, Pretoria, Johannesburg, PE, Cape Town, Durban, Bloemfontein, Polokwane and Nelspruit) and you do not have a problem with allowing strangers into your home for a month, you could rent out your home and earn some extra money.

But before you get all excited and dream about what you are going to spend the extra money on, it might be a good idea to do your homework and familiarise yourself with the proper channels and procedures that need to be followed.

Get the law on your side

Like with anything else in life there are certain rules and regulations with regards to renting out property, whether it being as holiday accommodation or a residential rental. Therefore it is of utmost importance to familiarise yourself with South African Housing Rental Housing Act. It will explain to you what you can do to rent out your property in a lawful manner.

Ask the experts

If you are not in real estate and property is not your business, it might be a good idea to talk to someone who knows how the system works. There are various institutions in South Africa like Just Letting that deals exclusively in property rentals and would most definitely be able to assist you in following the proper channels. If you are willing to share your profit it might even be wise to appoint an agent to handle the details of your property rental, making it easy and hassle free for you.

Get connected

It is no use putting up your property for rental if no one knows about it. It is very important to ensure that your property is seen by the right people in order to have success. Once you have followed the proper channels and have been approved, it is up to you to advertise your accommodation best you can.

The websiteMATCH aims to increase the numbers of non-hotel accommodation for the Soccer World Cup. All accommodation on MATCH will be featured in http://www.FIFA.com. For more information about this, phone the MATCH accommodation hotline on +27 (0)11 567 2710 or send an e-mail to enquiries@match-ag.com.

Getting your property graded is also a very good idea, but could be expensive as it needs to comply with various requirements. For more information about this visit http://www.tourismgrading.co.za/

You can also advertise your property on the following websites if you comply with their standards and regulations:

Tip: Taking flattering photos of your home is a good way to ensure interest from potential guests.

Be reasonable

There is no reason for you not to earn a proper income from renting out your home in 2010, but don’t be unreasonable and greedy.

There are several aspects that could affect the value you will be able to rent your house out for. You will be able to charge about 30-40% above the seasonal high rate, based on the following:

The house’s distance from the airport
The house’s distance from the stadium
The house’s distance from tourist attractions
Security
Furnishing and style

An average home could be rented out for about R700 to R1000 per night, whilst a house at the coast could even bring in anything from R5000 or more per night.

Other important aspects to keep in mind

Insurance: Renting out your home most definitely increases the risk of loss or damage to ones property, more importantly it exposes one to liability claims from paying guests. It is therefore advisable to read through your insurance contract before renting out your home to ensure that there is no reason for them not to pay out in the event of damages and loss.

It might be a good idea to:

Contact your broker and take out extra cover if need be.
Ensure that your broker gives confirmation of cover in writing.
Understand the terms and conditions of your cover.

Get permission: If you are still paying off your bond, it might be a good idea to get permission from your financial institution to rent out your home.

Choose your tenant: One does not necessarily want to be too picky when renting out your home in 2010, but it is till your private space and property and you do not want to worry about it for the entire duration of the World Cup. It is a good idea to get in contact with your potential tenant and get to know him a little better before making a final decision. Also demand a deposit from your tenant and arrange when final payment must be made, as you might run the risk of not being paid. Get ID copies of your guests along with their residential address.

Bring your home up to standard:

Make sure the interiors are clean, shiny and fresh but don’t be tempted to over-furnish the property. Personal items should be stored away.
A fresh coat of paint is a good idea to give your home a neat appearance.
Renovate old kitchen cupboards, light fittings and bathrooms if necessary.
Add decorative cushions and rugs.
Do the necessary repairs so that you do not have constant complaints from your guests.
Have electrical appliances checked and ensure that the bills are paid or that your electricity metre is loaded to avoid embarrassment.
Car parking should be adequate and secure.
Offer cleaning services to make your accommodation seem more professional.
Replace broken or chipped crockery.
Adequate bed-linen is a must.
Do not remove electrical appliances like washing machines, irons, televisions, game consoles, tumble dryers etc. as you want your guest to be completely at comfortable and entertained.
Adding some board games and DVD’s would also be a good idea.  
Personal touches: Add a few personal touches like welcome gifts, toiletries, etc.