Real Estate Investor Magazine South Africa Real Estate Investor Magazine - Dec/Jan 2018 | Page 19

FEATURE WHAT TO DO WITH ABSCONDING TENANTS Should your tenant disappear in the night, there are certain steps you need to follow: • Issue a cancellation letter, terminating the lease and indicating the final date of the lease. • If the tenant’s furniture remains in the proeprty, you have to make arrangements to store it. This should be at the cost of the tenant. • You’ll need to advise the tenant that the furniture needs to be removed, or it will be sold to defer costs. You’re not allowed to sell items without a court order. • An absconding tenant must formally cancel the lease (as per the provisions in The Consumer Protection Act), which allows the tenant the right to terminate the lease agreement with 20 business days’ notice. This can be done for any, or no reason at all. • This right, however, is subject to penalties. Most leases make provision for a penalty, holding the tenant liable for rental of two to four months (depending on the amount of time it takes to find a replacement.) AIRBNB AS AN INVESTMENT? TIPS FOR EARNING WITH AIRBNB Recommended services and consider- ations for successful hosting: • A bed with a comfortable mattress • Clean bedding which is made-up with laundered linen • Extra blankets or heating for colder nights • Adequate cupboard space for hanging towels and clothes • A bed side table or night stand prefer- ably with a bedside lamp • Extras such as bottle of water • Coffee, tea, milk • Add personal touches such as a fresh vase of flowers, candles, bottle of wine or air fresheners • Wi-Fi access with code Legalities: • Ensure that you comply with any pos- sible zoning restrictions • Subletting rooms is only allowed if you have permission from your land- lord if you are not the owner • Sectional title properties for example have rules for Airbnb so please check that out • Ensure that you offer all the facilities and amenities that you are advertising Airbnb has revolutionised how we think of short term rentals. In November, it was reported that a Cape Town Airbnb host earned R109 million a year from 114 properties within the Cape Town area. Al- though these figures have been disputed by those in the industry, it illustrates the earn- ing potential from short term letting. As of November 2017, there were 13 998 active rentals in Cape Town, with an average daily rate of R1 221. Occupancy rates are at 51% according to the platform’s AI and machine learning technology’s findings. But it seems times are changing. The company has recently imposed limits on the number of nights a year that a host can rent out their home. In mid-November, it was reported that Airbnb will be limiting the rental of homes in four Paris neigh- bourhoods to 120 nights per year, starting in 2018. Paris is the platform’s largest city based on the number of listings. Similar moves were made in London and Am- sterdam - limiting listings to 90 and 60 nights per year, respectively. Berlin resi- dents require a permit to list their homes on the site. Similar legislation is in the works in the U.S. While Airbnb offers homeowners a convenient stream of additional income, it’s important to keep an eye on legislative changes that are sure to be imposed locally. Bring your brand to the forefront. Sponsorship opportunities now available. Contact us at: [email protected] [phone] SA Real Estate Investor Magazine DECEMBER 2017/JANUARY 2018 17